digital RMB and offshore RMB stablecoin

Key Points:* Shanghai and Hong Kong sign an “Action Plan” to enhance financial connectivity focusing on digital RMB and offshore RMB stablecoins.

• Efforts are made to establish regulatory frameworks and cross-border infrastructure.
• Anticipation for robust policy support and pilot projects in financial markets. Shanghai and Hong Kong have signed a new “Action Plan” to enhance financial connectivity, focusing on digital RMB and offshore RMB stablecoins, an initiative led by Liu Bin, director of the Financial Research Office at the Pudong Institute of Reform and Development. Discussions took place at the Lujiazui Forum in June 2025.

Both cities aim to establish regulatory frameworks and cross-border infrastructure, increasing the global reach of the digital RMB. This could challenge USD stablecoins in Asian markets over time, with immediate market impacts expected as new policies roll out.

Regional Financial Markets Prepare for RMB Shift

Liu Bin advocates reinforcing the global application of the digital renminbi by expanding its cross-border capabilities. Paul Chan Mo-po, Hong Kong’s Financial Secretary, stressed the importance of partnering with Shanghai for enhanced financial innovation during the 2025 Lujiazui Forum. Paul Chan Mo-po, Financial Secretary, Hong Kong SAR, remarked, “The action plan implements the country’s requirements to enhance the competitiveness and influence of Shanghai as an international financial center, as well as to consolidate and enhance Hong Kong’s status as an international financial center.” source.

Hong Kong is set to support offshore RMB stablecoins, aligning with Liu’s strategy.

Responses from the financial community have been positive, with expectations of robust policy support. Key figures, including Christopher Hui, Hong Kong’s Treasury Secretary, emphasize Hong Kong’s role in facilitating regional financial growth.

Christopher Hui, Secretary for Financial Services and the Treasury, Hong Kong SAR, noted, “Most of our economy is service-driven, including not just financing, but also risk management and insurance. That’s where Hong Kong can play a critical role in helping companies from the mainland, including those in Shanghai, go global more efficiently.”

There is significant anticipation for pilot projects and regulatory sandboxes.

Historical Context, Price Data, and Expert Analysis

Did you know? Lujiazui Forum initiatives echo historical frameworks like Stock Connect and Bond Connect, which transformed trade flows and financial exchanges between Shanghai and Hong Kong, setting grounds for current RMB innovations.

As per CoinMarketCap, Bitcoin (BTC) is priced at $106,536.26, with a market cap of $2.12 trillion and a 24-hour trading volume of $44.91 billion. Despite a minor 0.30% decrease in the past 24 hours, Bitcoin shows a 27.49% increase over 90 days.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:20 UTC on July 2, 2025. Source: CoinMarketCap The Coincu research team highlights the potential growth of digital RMB and RMB stablecoins, especially in cross-border transactions. They emphasize the need for regulatory clarity to maximize adoption and leveraging blockchain technology effectively for these financial digital assets.

Liu Bin, Director of the Financial Research Office at Pudong Institute of Reform and Development, shared insights on the strategic importance of the action plan, noting the synchronization of recommendations and steps taken by both cities.

| | | --- | | DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |