The rapid evolution of digital economies across China continues to accelerate, with key developments emerging in digital asset regulation and public data governance. As regions like Hong Kong and Shaanxi take strategic steps forward, the national momentum behind data as a critical production factor is becoming increasingly evident. This article explores the latest policy shifts, their implications for innovation and economic growth, and how they align with broader national strategies for digital transformation.
National Push for Data-Driven Innovation: The "Data Element ×" Initiative
On June 24, 2025, the National Data Administration hosted the second installment of its “Data Element ×” press conference series, highlighting cross-sector progress in unlocking the value of data. With 29 provincial-level regions already launching local competitions for the 2025 “Data Element ×” Grand Challenge, the initiative is gaining nationwide traction.
Representatives from major institutions—including the People’s Bank of China, China Securities Regulatory Commission (CSRC), China Meteorological Administration, National Cultural Heritage Administration, and National Administration of Traditional Chinese Medicine—shared updates on high-quality data set development. The CSRC, for instance, has outlined a three-year roadmap to enhance data quality across the securities and futures industry, setting clear benchmarks for data standardization and interoperability.
A key theme emphasized by National Data Administration Director Liu Liehong during a June 19 field visit was the integration of AI with high-quality datasets: “Wherever ‘AI+’ goes, high-quality data sets must follow.” This underscores a strategic alignment between artificial intelligence advancement and robust, accessible data infrastructure.
Hong Kong Elevates Its Digital Asset Vision with Policy Declaration 2.0
On June 26, 2025, the Hong Kong Special Administrative Region government released the Hong Kong Digital Asset Development Policy Declaration 2.0, reinforcing its ambition to become a global hub for digital asset innovation. Building on the recent enactment of stablecoin legislation, this updated framework introduces the LEAP strategy, focusing on four core pillars:
- Legal and Regulatory Enhancement
- Expansion of Tokenized Products
- Application Scenarios and Cross-Sector Collaboration
- Partner and Talent Development
The declaration emphasizes a balanced approach—fostering innovation while prioritizing risk management and investor protection. It envisions a trusted ecosystem where digital assets deliver tangible benefits to real-world economies and financial markets.
Hong Kong Financial Secretary Christopher Hui, in a June 15 commentary titled “Accelerating Forward, Steadfast Sailing,” previewed the policy direction, noting plans to integrate traditional financial strengths with digital innovation. These include enhancing the safety and flexibility of digital assets in real economy applications and encouraging both local and international enterprises to explore new use cases.
According to recent data, transaction volumes involving digital assets through Hong Kong banks reached HK$17.2 billion in 2024, with HK$5.1 billion in digital assets under custody by year-end. The Securities and Futures Commission (SFC) will lead licensing frameworks for digital asset trading and custody service providers. Meanwhile, the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority will spearhead a comprehensive legal review to support tokenization of real-world assets (RWAs) and financial instruments.
Yunnan Advances Digital Transformation with Four Key Work Plans
On June 23, 2025, Yunnan Province’s Data Bureau unveiled four pivotal policy documents outlining its digital development agenda for 2025:
- Work Plan for Digital Yunnan Construction 2025
- Work Plan for Yunnan’s Digital Economy 2025
- Work Plan for Digital Government in Yunnan 2025
- Work Plan for Digital Society in Yunnan 2025
These plans prioritize foundational data infrastructure, including the construction of databases for natural resources, geospatial information, economic governance, population, legal entities, and electronic credentials. New thematic databases in environmental protection and law enforcement are also set to launch.
A major focus is on data circulation and marketization. The province plans to release the Yunnan Public Data Authorization Operation Implementation Plan, pilot public data asset registration, and explore models where data assets can be used as equity or collateral. Yunnan also aims to advance data asset accounting and launch end-to-end management pilots.
To strengthen its data economy ecosystem, Yunnan will accelerate the development of the Kunming International Data Exchange, establish formal data transaction rules and processes, and support the formation of a data services association.
Shaanxi Clarifies Public Data Authorization Model
Shaanxi Province has released the Shaanxi Provincial Public Data Resource Authorization Operation Implementation Rules (Trial) for public consultation. This draft regulation defines the scope of authorized data, delineates responsibilities among agencies, and outlines operational procedures for public data utilization.
At the provincial level, the primary model is comprehensive authorization, where the data management authority grants access based on centralized data sharing and cross-departmental coordination. However, the framework allows flexibility—sector-specific or scenario-based authorization can be implemented jointly by data authorities and industry regulators when appropriate.
This structured yet adaptable approach reflects a growing trend in China: treating public data as a strategic asset while ensuring controlled, value-driven release into economic workflows.
Core Keywords Driving the Digital Shift
This wave of policy innovation centers around several core keywords that reflect national priorities:
- Digital assets
- Public data authorization
- Data elements
- Tokenization
- Data governance
- Real-world assets (RWAs)
- Digital economy
- Data infrastructure
These terms are not just technical jargon—they represent building blocks for a new economic paradigm where data fuels innovation, efficiency, and competitiveness.
Frequently Asked Questions
Q: What is the significance of Hong Kong’s LEAP framework?
A: The LEAP framework provides a structured roadmap for sustainable digital asset growth, balancing innovation with regulatory oversight. It positions Hong Kong as a leader in tokenized finance and RWA integration.
Q: How does public data authorization benefit businesses?
A: Authorized access to public data enables companies to develop smarter services, optimize operations, and create new revenue streams—especially in sectors like finance, logistics, and urban planning.
Q: What role does data infrastructure play in AI development?
A: High-quality, well-governed data is essential for training reliable AI models. Without robust data foundations, AI systems risk inaccuracy or bias.
Q: Is tokenization only relevant to financial assets?
A: No. Tokenization now extends to real estate, commodities, intellectual property, and even carbon credits—making traditionally illiquid assets more accessible and tradable.
Q: How are provinces like Yunnan and Shaanxi contributing to national digital goals?
A: By implementing localized but aligned policies, these regions are creating scalable models for data governance that can inform national standards.
Q: What safeguards exist for investor protection in Hong Kong’s digital asset market?
A: The SFC will regulate service providers through licensing requirements focused on custody security, transparency, and anti-money laundering compliance.
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Conclusion
From Hong Kong’s forward-looking digital asset strategy to Shaanxi’s precise public data rules and Yunnan’s holistic digital agenda, China’s regional policies are converging on a common vision: unlocking data’s full economic potential. As legal frameworks mature and infrastructure expands, the line between digital innovation and real-world impact continues to blur—ushering in a new era of intelligent governance and inclusive growth.