China International Capital Corporation: Purchasing tokenized stock assets through stablecoins will cause funds to flow directly in/out of the stock market.

On June 21, CICC issued an article titled “The Potential Impact of Stablecoins on the Financial System”, which pointed out that from the perspective of money creation, lending in the decentralized financial system realizes the function of “quasi-money”, especially the purchase of tokenized stock assets through stablecoins will directly inflow/outflow funds into and out of the stock market; From the perspective of market sentiment, cryptocurrency prices fluctuate greatly, affecting stock market expectations, and historically, the NASDAQ index and Bitcoin prices show a certain correlation; Crypto assets and stablecoin-related targets in the stock market, such as crypto asset exchanges, financial institutions, etc., affect stock prices through fundamental changes. For the Hong Kong dollar, regulating the issuance of stablecoins, especially the Hong Kong dollar stablecoin, will help enhance the influence of the Hong Kong dollar in cross-border payments, crypto assets and other fields, enhance the international competitiveness of Hong Kong’s financial industry and the Hong Kong dollar, and consolidate the status of Hong Kong, China as an international financial center.