Core Viewpoint - China Pacific Insurance's Hong Kong asset management arm is strategically pivoting towards Real-World Asset (RWA) tokenization to carve out a niche in the competitive asset management landscape of Hong Kong, aiming for a "curve overtaking" in the industry [1][5][20]. Group 1: RWA Strategy and Developments - In March 2025, China Pacific Asset Management Hong Kong launched the first on-chain money market fund in Hong Kong, "eStable MMF," with a size of USD 100 million [4]. - The company signed a memorandum of cooperation with GCL-Poly Energy Holdings to tokenize its renewable energy assets, facilitating transactions with stablecoins and DeFi ecosystems [4][6]. - RWA involves converting real-world assets into digital tokens via blockchain technology, enhancing liquidity and trading efficiency, akin to traditional asset securitization [5][20]. Group 2: Market Context and Challenges - Chinese asset management firms in Hong Kong face a "zero presence" dilemma, relying heavily on domestic QDII configurations and struggling to expand third-party business due to late entry and weak distribution networks [8][11]. - China Pacific Asset Management Hong Kong has seen slow growth since its establishment in 2010, with total managed assets exceeding HKD 75 billion by the end of 2024, of which approximately HKD 60 billion is from the group's own funds [11][12]. Group 3: Regulatory Environment and Opportunities - The 2024 "New Ten Measures" from the State Council encourages Chinese insurance firms to expand overseas, providing a favorable policy environment for innovation in asset management [12][20]. - The current market conditions and regulatory support create a window for China Pacific to explore RWA as a new growth avenue, potentially positioning itself as a leader in this emerging ecosystem [14][20]. Group 4: Risks and Market Sentiment - Despite positive official narratives around RWA projects, skepticism exists regarding their actual investment value, with concerns about potential speculative behaviors and lack of genuine demand for tokenized assets [16][19]. - The success of RWA initiatives hinges on the underlying asset's real investment value and market demand, as mere tokenization without solid economic fundamentals may lead to speculative bubbles [19][20].