Shanghai and Hong Kong strengthen digital RMB financial cooperation

Gate News bot message, Shanghai and Hong Kong have signed a new "action plan" aimed at strengthening financial connectivity, with a focus on digital RMB and RMB-supported stablecoins. The initiative is led by Liu Bin, director of the Financial Research Office of the Pudong New Area Reform and Development Research Institute, and will be discussed at the Lujiazui Forum in June 2025.

Both regions are committed to establishing a cross-border regulatory framework and infrastructure to expand the potential of the digital yuan, which may challenge the dollar stablecoins in Asia. Hong Kong's Financial Secretary Paul Chan emphasized the importance of promoting financial innovation in collaboration with Shanghai. The financial sector has reacted positively and looks forward to strong policy support for future pilot programs and regulatory sandboxes.