Sinco Stock Slides 7.8% Despite Public Support for Regulations
Shares of Sinco Technology (01611.HK) declined 7.79% as the company publicly endorsed recent risk warnings from Chinese regulators aimed at curbing illegal securities activities. In an industry observation report, Sinco framed the regulatory tightening not as a setback for innovation but as a necessary step to distinguish legitimate operations from fraudulent schemes. The company stated the move follows a "good money drives out bad money" logic, which it believes will ultimately clear competitive barriers for compliant firms by shifting the market from speculative growth to value-driven development.
Crackdown Creates "Policy Channel" for Compliant RWA Firms
Sinco Technology's analysis highlights that the regulatory action primarily targets "pseudo-innovations" used as a cover for illegal fundraising and fraud. While strict, the rules contain a critical exception for "business carried out with the consent of the competent business department and relying on specific financial infrastructure." Sinco interprets this clause as a deliberate "policy channel" for compliant companies. The regulations also objectively describe a model where mainland Chinese entities use domestic assets to conduct RWA business overseas. This suggests that, within specific guidelines, using foreign capital markets to provide liquidity for domestic assets remains aligned with China's digital economy goals.
Hong Kong Positioned as Hub for Mainland Asset Tokenization
Based on its interpretation, Sinco Technology is refining its RWA strategy to focus strictly on a "domestic rights, overseas compliance" principle. The company plans to leverage Hong Kong's established legal framework and its own regulatory licenses to build a secure bridge between high-quality mainland assets and global capital. By providing an end-to-end solution that meets the regulatory requirements of both jurisdictions, Sinco aims to solidify its role as a compliant operator and contribute to establishing Hong Kong as a global hub for Real World Asset tokenization.
