To address the challenges of cross-border finance faced by Chinese companies expanding overseas, experts suggest that a stablecoin linked to the Hong Kong dollar could be piloted first.

Associate Professor of Finance at the University of Hong Kong and Director of the Master of Wealth Management program Liu Yang said at a forum that when companies enter the international capital market, they commonly finance and operate in local currency after raising funds in US dollars, and then settle in Renminbi at their headquarters. In this process, the capital cost in China will fluctuate with the inflation of the US dollar, posing a risk; the local operation is also related to the local economic cycle, which is another risk. Currently, the high interest rates and risks posed by the flow and payment of US dollars are also significant. "The stability of stablecoins is due to the high-quality, highly liquid assets behind them as underlying assets. Therefore, in the future, it is crucial to expand and deepen the offshore Renminbi safe asset pool. At the same time, it is also necessary to handle the relationships between onshore Renminbi, offshore Renminbi, and stablecoins in the context of limited capital project openings. Currently, the Hong Kong dollar stablecoin is a good way to explore and trial." Liu Yang said.