Hong Kong Monetary Authority: Hong Kong must have a more reliable regulated stablecoin environment to allow the tokenization process to develop smoothly.

Arthur YUEN, Acting Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that with the regulations on stablecoins in place in Hong Kong, relevant regulatory work can be advanced. The goal of HKMA is to have a reliable and regulated stablecoin environment in Hong Kong in the coming years to facilitate the smooth development of tokenization. The technology related to tokenization is expected to play a role in economic activities and financial market transactions in five years, therefore proactive construction is necessary, and cooperation is needed in terms of tokenization clearing and settlement platforms, with stablecoins being a unit of tokenization clearing. Arthur YUEN believes that the lowering of Hong Kong Interbank Offered Rate (HIBOR) is beneficial for loan demand and investment sentiment. Hong Kong interest rates have been relatively high in the past few years, leading to pressure on financing demand and affecting the total amount of loans. Due to lower interest expenses, some institutions have borrowed from the mainland. Additionally, Arthur YUEN confirmed discussions with relevant mainland authorities on further cross-border connectivity measures, but refrained from disclosing details at the moment.