According to reports from the Financial Times, China has instructed Alibaba’s Ant Group and JD.com to halt development of their planned yuan-backed stablecoins in Hong Kong. The decision comes just as the city begins implementing new regulatory rules for stablecoin issuers, reflecting Beijing’s ongoing effort to maintain strict control over the digital financial ecosystem.
Sources familiar with the matter say closed-door meetings were held between the People’s Bank of China (PBoC), the Cyberspace Administration of China, and the two tech giants. Both Ant Group and JD.com were preparing to seek approval for launching stablecoins pegged to the Chinese yuan, but regulators made it clear that such projects should not move forward.
Officials reportedly emphasized that private companies and brokers should not have the authority to issue any form of currency, as it could challenge Beijing’s centralized control over monetary policy. The PBoC views private stablecoins as a potential threat to the adoption and stability of the digital yuan (e-CNY), which has struggled to gain widespread public usage since its launch.
Hong Kong’s Monetary Authority introduced its stablecoin regulatory framework on August 1, receiving more than 70 applications from various issuers seeking to develop fiat-backed digital assets. Some officials had previously expressed optimism that yuan-denominated stablecoins could help internationalize China’s currency and reduce reliance on the U.S. dollar in global trade.
However, Beijing’s stance has shifted in recent months. According to sources, the change in tone came after remarks made in late August by Zhou Xiaochuan, the former governor of the People’s Bank of China. During a closed forum in Beijing, Zhou reportedly warned that “stablecoins could fuel speculation, fraud, and financial instability if not carefully regulated.” His comments, insiders say, prompted a more cautious regulatory approach and direct intervention against corporate stablecoin initiatives.
The decision aligns with China’s broader strategy to strengthen control over digital financial instruments and prevent private entities from creating currency alternatives that could undermine the central bank’s influence. While Hong Kong continues to promote itself as a regional hub for digital assets, Beijing’s policies serve as a reminder that crypto innovation in the region remains tightly bound to the mainland’s political and economic directives.
Financial analysts suggest that China’s ban on yuan-backed stablecoins by major corporations like Alibaba could slow progress toward the global use of the renminbi. According to SWIFT’s RMB Tracker, as of August 2025, the yuan accounted for only 2.9% of global payments, compared to the U.S. dollar’s dominant 47% share. Experts argue that limiting yuan-denominated stablecoins could hinder efforts to expand the currency’s global influence.
Conclusion
China’s decision to block Alibaba’s Ant Group and JD.com from issuing stablecoins underscores the government’s ongoing commitment to maintaining financial sovereignty and safeguarding the stability of its monetary system. While Hong Kong continues to explore its role as a global crypto hub, the mainland’s regulatory grip ensures that digital finance in the Chinese sphere remains strictly under state supervision.
