The Process of Financialization and Licensing Requirements: Legal Considerations for the Segmentation of Asset Entities
Publication Time:2024-09-05 17:51:11
At a roundtable discussion themed 'Outlook on Future RWA: Possible Paths to Connect Global New Opportunities,' Xiao Sa, a senior partner at Dacheng Law Offices in Beijing, delved into the relationship between asset entity segmentation and financialization. She pointed out that converting physical assets into equal segments and transforming them into financial products is an important process of financialization. This process must comply with relevant laws and regulations and obtain necessary licenses to ensure the safety and legality of transactions. Xiao noted that the implementation of this domain currently faces some challenges and difficulties. However, the Hong Kong market, due to its relatively flexible legal environment and open attitude, has become an ideal place for exploring this path. Unlike the civil law system prevalent in mainland China, Hong Kong's legal system places more emphasis on opportunities and innovation and is less constrained by established rules. This provides more possibilities for physical assets seeking financialization paths. However, whether in mainland China or Hong Kong, adapting to changes in the legal environment is a complex task. Particularly for new products and services, finding the right balance between the two legal systems is an urgent issue to be addressed. Focusing on and promoting the integration of the two legal systems will be a key step in advancing the asset financialization process.
Financialization
Asset Entity Segmentation
Equal Segmentation
Licensing Requirements
Legal Integration
Civil Law System
Common Law System