China New City's stock increased more than 8% after announcing a collaboration with EX.IO to launch a commercial real estate Real World Asset (RWA) tokenization project.

Executive Summary

Chinese real estate firm China New City (01321.HK) saw its stock surge over 8% after partnering with global Web3 innovation group EX.IO to develop a Real World Asset (RWA) tokenization project focused on commercial real estate.

The Event in Detail

China New City (01321.HK) experienced an over 8% increase in its stock price following the announcement of its partnership with EX.IO. This collaboration centers on the launch of a commercial real estate RWA project, aiming to tokenize traditional assets on the blockchain. EX.IO will provide comprehensive tokenization services, encompassing legal document coordination, smart contract development and auditing, wallet solutions, platform access for tokens, investor Know Your Customer (KYC) procedures, initial virtual asset distribution, and secondary trading. China New City also became a joint founding unit of the "Hong Kong Real World Assets Global Industry Alliance" on July 30, 2025, an initiative focused on blockchain, artificial intelligence, and IoT technologies to drive asset digitization in sectors like real estate and green finance.

Financial Mechanics

The partnership leverages EX.IO's expertise in bridging traditional finance and Web3. EX.IO has previously issued Hong Kong's first RWA digital token ($EXCB-25) on the Ethereum mainnet, structured as a convertible promissory note. This model involves a trust institution for registering RWA asset ownership and supporting stablecoin subscriptions, which aims to provide lower costs, native on-chain token ownership, and a streamlined operational model for compliant RWA issuance. CTI Capital, a Chinese state-owned financial institution, plays a role in managing the registration of off-chain RWA information, ensuring verifiability and reducing issuance costs. For this commercial real estate project, China New City aims to explore RWA tokenization to achieve a more objective fair value measurement for its assets, which were approximately RMB 4.337 billion as of December 31, 2024, given its market capitalization has historically been below its net asset book value.

Business Strategy & Market Positioning

China New City's move into RWA tokenization reflects a strategic effort to unlock and reflect the true value of its substantial real estate portfolio. The company's decision is driven by a recognition that its market capitalization has not fully represented the book value of its net assets. This strategy aligns with a broader trend of traditional companies exploring blockchain for asset management and financing. Globally, RWA tokenization has seen significant growth, with the sector surging 800% and total value locked (TVL) exceeding $65 billion in 2025. Examples such as Blocksquare, which has surpassed $200 million in tokenized real estate assets, and platforms like Red Swan and Qarat tokenizing billions in commercial real estate, demonstrate the increasing adoption. Hong Kong is positioning itself as a regulated hub for digital assets and tokenization, evidenced by the launch of a RWA registry platform by the HKEX on August 7, 2025, which aims to standardize data, valuation, and enhance liquidity. This regulatory environment and the formation of alliances like the "Hong Kong Real World Assets Global Industry Alliance" provide a conducive ecosystem for such initiatives.

Broader Market Implications

This development signifies a growing mainstream acceptance of Real World Assets (RWA) tokenization, particularly within the commercial real estate sector. The partnership between China New City and EX.IO may encourage further integration of traditional finance with the crypto ecosystem, fostering increased liquidity and accessibility for real estate assets, especially within the Asian market. The strategic move by a traditional Chinese real estate firm, even as Mainland China maintains a strict ban on cryptocurrency trading, underscores the potential for RWA tokenization to bridge financial systems through regulated hubs like Hong Kong. This initiative, combined with the "Hong Kong Real World Assets Global Industry Alliance," points towards a positive trend for the broader Web3 ecosystem, promoting corporate adoption and potentially influencing investor sentiment toward tokenized assets as a viable investment class for institutional-grade properties. Experts project tokenization could account for 20% of real estate transactions by 2025, with the market growing from $3.5 billion in 2024 to $19.4 billion by 2033, at an annual growth rate of 21%.