The Hong Kong Monetary Authority has just issued an urgent statement clarifying that the rumor circulating online about "the first offshore RMB stablecoin being issued in Hong Kong" is false news.
(Stablecoin Regulations) After coming into effect on August 1, any issuance of fiat stablecoins in Hong Kong must obtain a license. Currently, no licenses have been issued, so any issuance is illegal. Hong Kong's position is very clear: we welcome innovation, but you must operate within the regulatory framework. This echoes the recent contraction of cryptocurrency business by Chinese institutions in Hong Kong.
Caixin reports that it is to avoid the systemic risks of domestic companies being tied to US dollar stablecoins.