China's recent release of Document No. 42, titled "Notice on Further Preventing and Handling Risks Related to Virtual Assets," signals a move towards stricter regulation of Real World Assets (RWAs) exported overseas. CICC Hong Kong has already initiated discussions with major public blockchains and exchanges to explore potential business collaborations. This development comes as Ant Group and JD.com express significant concern over the policy changes. The document clarifies that RWAs with underlying assets in Hong Kong are not subject to domestic regulatory oversight, as they fall outside the scope of Regulation 42. However, RWAs based on domestic securities or funds, if issued offshore, would be regulated by the China Securities Regulatory Commission (CSRC). The policy shift from a complete prohibition to strict regulation indicates a cautious approach, emphasizing control rather than encouragement or rapid expansion of RWAs with domestic assets abroad.