CICC: Purchasing tokenized stock assets with stablecoins will result in direct capital inflows and outflows in the stock market

According to ChainCatcher, CICC has published an article titled "The Potential Impact of Stablecoins on the Financial System," which points out: From the perspective of money creation, lending activities within decentralized financial systems enable the creation of "quasi-money." In particular, using stablecoins to purchase tokenized equity assets allows funds to flow directly into or out of the stock market. From a market sentiment perspective, the high volatility of cryptocurrency prices affects stock market expectations, and historically, there has been a certain correlation between the Nasdaq Index and Bitcoin prices. In the stock market, crypto assets and stablecoin-related targets, such as crypto asset exchanges and financial institutions, can influence stock prices through changes in their fundamentals.

For the Hong Kong dollar, regulating the issuance of stablecoins—especially Hong Kong dollar stablecoins—can help enhance the influence of the HKD in areas such as cross-border payments and crypto assets, strengthen the international competitiveness of Hong Kong's financial industry and the HKD, and consolidate Hong Kong's status as an international financial center.