China Construction Bank Abruptly Cancels $3 Billion Digital Bond Issuance

China Construction Bank Cancels Digital Bonds Without Explanation
SCMP Interprets It as Impact of Chinese Government's Fintech Crackdown

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China Construction Bank abruptly canceled the issuance of digital bonds worth $3 billion (KRW 3.334 trillion).

Hong Kong's South China Morning Post (SCMP) reported on the 24th that China Construction Bank, the world's second-largest bank, canceled its plan to issue blockchain-based digital bonds the day before.

Malaysia-based FUSANG Virtual Securities Exchange, the digital bond issuance agent for China Construction Bank, announced in a statement the previous day that China Construction Bank "decided not to issue digital bonds" and would return the investment funds.

China Construction Bank originally planned to issue the digital bonds at noon on the 13th. However, just a few hours before issuance, it abruptly halted the process. At that time, China Construction Bank did not explain the reason for the suspension.

SCMP reported that this appears to be influenced by the Chinese government's crackdown on fintech.

On the 10th, the Chinese government announced a draft of the "Anti-monopoly Guidelines in the Platform Economy Sector." Following the draft announcement, regulations targeting China's major internet platform companies were expected.

SCMP noted that the cancellation of China Construction Bank's digital bond issuance recalls the issues faced by Ant Group, stating, "China Construction Bank got scared amid the Chinese government's crackdown on technology companies and their financial innovations."

SCMP also pointed out, "In a situation where the Chinese government is accelerating the introduction of the legal digital yuan, China Construction Bank's digital bonds, which can be traded in US dollars or Bitcoin, may be seen as undermining the authorities' efforts to protect 'yuan sovereignty.'"

China has banned the issuance and circulation of private cryptocurrencies such as Bitcoin since 2017.

This content was produced with the assistance of AI translation services.