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Thursday, October 22, 2026English edition
The Geopolitician

Country risk, from the local press

China · Country watch

HSBC Launches RedCoin, Hong Kong Stocks Plummet

HSBC introduces RedCoin stablecoin in Hong Kong; Hang Seng Index hits a four-month low amid fading hopes for Beijing stimulus.

The picture Deteriorating How this is judged →

Business conditions in China are deteriorating as Hong Kong stocks hit a four-month low and foreign direct investment declines. HSBC's RedCoin launch offers a digital currency boost but doesn't offset broader market concerns.

Flare-up watch: Calm what this means → — All China briefings →

In this briefing HSBC · PayMe · Hang Seng Index · Ministry of Commerce of the People's Republic of China

Regulation

Nothing significant reported today.

Disruption

Nothing significant reported today.

Internal tension

Nothing significant reported today.

Safety & health

Nothing significant reported today.

Companies

  • Finance
  • Retail
  • Technology

HSBC launches RedCoin stablecoin in Hong Kong

Woman walking past an hsbc bank building in the city
Paul Yong / Unsplash

HSBC has launched its Hong Kong dollar-backed stablecoin, RedCoin, for over 3.3 million users of its PayMe app. The rollout will begin on Friday, with the stablecoin initially supporting peer-to-peer transfers and peer-to-merchant payments, according to the South China Morning Post Business. This move is part of HSBC's strategy to integrate digital currencies into Hong Kong's mainstream retail and investment markets.

Impact Retailers and financial service providers in Hong Kong will see increased digital currency transactions as HSBC's RedCoin enters the market.

Sources: South China Morning Post Business ↗

Markets

  • Finance

Hong Kong stocks hit four-month low amid stimulus doubts

Hong Kong stocks fell sharply on Thursday, with the Hang Seng Index dropping 2.7% to 23,007.73, its lowest level in nearly four months. The decline is attributed to diminishing expectations for strong stimulus measures from Beijing, following recent economic data showing the annual growth target is likely to be met, according to the South China Morning Post Business.

Impact Investors in Hong Kong's stock market face losses as the Hang Seng Index declines amid reduced expectations for Beijing's economic stimulus.

Sources: South China Morning Post Business ↗

Trade

  • Finance

China's foreign direct investment falls by 4.3% in 2026

China's Ministry of Commerce reported that foreign direct investment (FDI) in China fell by 4.3% to 548.81 billion yuan from January to September 2026. The number of newly established foreign-invested enterprises decreased by 2.3% year-on-year, while actual use of foreign capital in September increased by 2.5%, according to ChinaNews.com.

Impact Foreign investors see reduced returns as China's FDI declines, impacting sectors reliant on foreign capital.

Sources: ChinaNews.com ↗

Politics

Nothing significant reported today.

Also today in China

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

All China briefings →

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