Hong Kong Needs a Liquidity Revolution

1. The Problem in Hong Kong Lies Not in Assets, but in Liquidity

Hong Kong's capital market has never lacked high-quality assets. Over 70% of the companies in the Hang Seng Index derive their main revenues from mainland China, covering high-growth sectors such as technology, finance, consumer, and pharmaceuticals. In 2022, there were more than 2,500 listed companies in the Hong Kong stock market, with a total market capitalization exceeding 40 trillion HKD, ranking among the top globally in terms of asset quality and scale. However, the market has been shrinking in silence:

• In 2023, the average daily turnover on the Hong Kong Main Board was only 112 billion HKD, down more than 40% from the 2021 peak. In contrast, Nasdaq's single-day turnover often exceeds 200 billion USD;
• From 2022 to 2023, Hong Kong IPO fundraising totals declined for two consecutive years, with 2023's fundraising accounting for only 7% of the global IPO market, lagging behind Nasdaq, NYSE, and even the National Stock Exchange of India;
• The price gap between A-shares and H-shares of the same company has long existed, with H-shares in sectors such as finance and energy often trading at a discount of more than 30% compared to A-shares.

Where does the problem lie?

Liquidity.

The Bank for International Settlements (BIS) 2023 report pointed out that although Hong Kong's market Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) meet regulatory requirements, market depth and trading activity are far below those of major international financial markets. Without liquidity, there is no effective price discovery mechanism; without continuous buying, even the best assets struggle to realize their value.

2. The Old Engine Has Failed, Where Is the New Momentum?

The Hong Kong government has not been inactive. Since 2022, the Hong Kong Monetary Authority and the Securities and Futures Commission have jointly launched several innovative policies:

• January 2023: Issued the first batch of virtual asset trading platform licenses, with HashKeyExchange, OSL, and others becoming licensed institutions;
• June 2024: The "Stablecoin Issuance Ordinance" was officially implemented, regulating the issuance of fiat-backed stablecoins such as USDH and HKDC;
• First quarter of 2025: The Monetary Authority will launch the RWA registration system, initially covering tokenized products such as bonds, real estate funds, and commodities.

In fact, Hong Kong has surpassed Singapore and Dubai in digital financial regulatory innovation, second only to the European Union. But these systems are merely "water channels," not the "water source." According to a 2023 market survey by HKEX, over 60% of institutional investors believe that Hong Kong lacks effective mechanisms to convert innovative policies into market liquidity.

What Hong Kong's financial market needs is a new engine that can truly aggregate capital, assets, and traffic.

3. RWA Brokers: New-Type Liquidity Organizers

In traditional finance, brokers, exchanges, and market makers each have their own roles. But in the era of RWA (Real World Assets), these roles are far from enough.

The essence of RWA is to map real-world assets—stocks, bonds, real estate, commodities—into tradable digital rights through blockchain technology. According to PwC, the global RWA market size will reach 16 trillion USD by 2027, with the Asia-Pacific region accounting for over 35%.

This not only requires trading venues, but also a new type of organizer that can connect the asset side, capital side, and traffic side.

This role is precisely the RWA broker (XBrokers).

XBrokers are exactly this new type of liquidity organizer:

• On one hand, they connect with listed companies, providing them with targeted financing and continuous liquidity solutions;
• On the other hand, they connect with investor communities, aggregating scattered capital and traffic into orderly buying power;
• Through mechanisms such as staking, ticket lending, and tokenized incentives, they form long-term and sustainable market momentum.

Why?

• Listed companies need channels to bring asset packages such as targeted financing and stock income rights to the market;
• Investors and communities need entry points to aggregate capital, traffic, and trust, converting them into real buying power;
• The market needs mechanisms to connect the primary and secondary markets, capital and traffic, assets and derivatives.

RWA itself is not omnipotent; putting assets on-chain is only the first step. To truly unleash liquidity, a key role is needed: RWA brokers (XBrokers). Because the essence of RWA is mapping real-world assets onto the blockchain, it requires not just a trading venue, but a new role that can integrate the asset side (listed companies), capital side (retail/institutional), and traffic side (communities). XBrokers were born for this purpose.

4. A Financial Revolution Belonging to Hong Kong

For a long time, RWA has been regarded as the most imaginative track in blockchain, but has always been trapped in the dilemma of "having assets but no liquidity, having technology but no market." The emergence of XBrokers will completely change this situation. This is not a simple addition of institutions, but a reconstruction of mechanisms and an awakening of liquidity. Because the traditional financial architecture can no longer activate Hong Kong stock valuations, the combination of RWA (Real World Assets) and new-type XBrokers is the breakthrough. When RWA and XBrokers are combined, a new possibility emerges: using smaller capital to leverage greater liquidity.

• Primary market: discounted subscriptions and lock-up mechanisms form the initial buying power and create scarcity;
• Secondary market: through code mapping and convenient trading, the primary market's buying power is converted into sustained trading momentum;
• Liquidity leverage: listed companies can drive multiple times the market buying power with relatively small reserves or stock reserves;
• Market cycle: capital, traffic, and assets circulate in a closed loop, forming positive expectations and price discovery.

This is not just a new financial tool, but a liquidity revolution, which means:

• Investors gain fairer and more efficient participation channels;
• Listed companies can leverage market value and financing space at low cost;
• The entire market's liquidity structure is redefined.

This is not empty futurism, but a reality that is happening. The government's institutional design, market pilot explorations, and JU.COM's innovative model are gradually converging into a clear path. RWA brokers are the key puzzle piece in building Hong Kong's new financial ecosystem.

Conclusion: Hong Kong's New Banner

Hong Kong needs a new narrative.

In the past, it was known as the "Asian International Financial Center"; in the future, it will have a new label: a global liquidity center driven by RWA. Hong Kong needs a liquidity revolution.

The core of this revolution is not to imitate Wall Street again, but to create a financial mechanism unique to Hong Kong by combining with the XBrokers model proposed by JU.COM.

When RWA and XBrokers drive together, they not only bring technological innovation, but also institutional and market structure innovation. Hong Kong will no longer be a vassal of Wall Street, but the creator of a new global liquidity order.

• Let Hong Kong once again become the bridge connecting global capital
• Enable more enterprises to gain financing vitality
• Let the market regain liquidity discourse power to compete with Wall Street

The emergence of RWA brokers is the catalyst for all of this.

RWA is the future, XBrokers are the engine, and Hong Kong will be the starting point.

Data sources: Hong Kong Monetary Authority, HKEX, IMF, BIS, KPMG, PwC, Morgan Stanley Research Reports

Note: This article is based on public policy documents, market data, and innovative practices, aiming to promote industry discussion and consensus building. Reprinting, quoting, and responses are welcome.