China has announced a three-year metaverse development strategy to create three to five industrial clusters based on advanced technologies by 2025. The plan is to create a 3D interactive industrial metaverse, develop innovative systems, design applications for digital life, establish industrial support systems, and create an effective framework for industrial governance. The strategy aims to integrate the metaverse into various sectors such as home appliances, automobiles, and aerospace. Hong Kong-based investment company Taiji Capital has launched a Security Token Offering (STO) property fund to distribute exclusive tokens to professional investors.

• China has formally established a three-year action plan to support the development of the country’s metaverse economy.
• Taiji Capital, a Hong Kong-based investment firm, is the first company in the region to establish a Security Token Offering (STO) real estate fund that will distribute exclusive tokens to professional investors.

As businesses look to integrate next-generation information technologies like artificial intelligence, blockchain, cloud computing, and virtual reality into the metaverse, China has formally established a three-year action plan to support the growth of the nation’s metaverse economy.

The Ministry of Industry and Information Technology (MIIT), among along with other Chinese ministries, posted a policy document on Friday that stated China’s intention to create „three to five industrial clusters” centred on these technologies by the year 2025, with an emphasis on „breakthrough applications and governance.”

The plan outlines five major tasks for businesses in the nation, including: Creating a 3D interactive industrial metaverse; Developing cutting-edge technological and industrial systems; Designing immersive and interactive digital life applications; Establishing thorough industrial support systems; and Putting in place an effective framework for industrial governance.

According to the strategy, China wants to incorporate the growth of the metaverse into a number of sectors of the economy, including the home appliance, automobile, and aerospace industries. The steel and textile manufacturing sectors will be able to leverage this technology for material calculations, scheduling optimization, and streamlining other aspects of the production process.

The idea describes the metaverse as an immersive, networked environment where the physical and virtual worlds collide and their economies converge. It emphasises that the metaverse is anticipated to be at the forefront of the development of next-generation internet technologies and intends to speed up the modernization of manufacturing sectors in a way that is both intelligent and environmentally benign. This will promote the creation of a contemporary industrial system.

According to the document, China’s ultimate goal is to create a sizable industrial metaverse that will support new industry and growth. The objective of the strategy was to „take advantage of the global acceleration of the metaverse industry,” which has the ability to „lead the next generation of internet development and accelerate the upgrading of the manufacturing industry to be more advanced, intelligent, and greener.”

The strategy seeks to make significant advancements in key metaverse technologies throughout time, including data flow, content generation, digital twins, perception, and interaction, to position China as a global leader in the metaverse industrial ecosystem and foster a climate conducive to sustained economic development.

Hong Kong’s tokenization of real estate

Taiji Capital, an investment company based in Hong Kong, is the first in the region to launch a Security Token Offering (STO) for a real estate fund, which will distribute exclusive tokens to professional investors as the tokenization trend in global finance steadily gets steam.

Taiji Capital reportedly launched its closed-end STO PRINCE fund through its subsidiary Pioneer Asset Management. The fund seeks to earn $100 million in order to purchase ownership rights for a collection of five connected stores on Kowloon’s Prince Edward Road West. These stores will be tokenized, tracked, and exchanged on the blockchain technology.

If regulatory approval is obtained, Taiji Capital intends to list the PRINCE token on HKbitEX, the company’s virtual asset trading platform, in order to provide 24-hour trading capabilities and lower finance costs.

According to Zhang Zhongyu, VP of Capital Markets and Asset Management Business at Taiji Capital, STOs provide real estate owners and developers with lower financing costs than more traditional funding options like bank loans, which have interest rates as high as 5%.

Benefits of the fund include rental income and an increase in the value of the property, and the minimum investment amount for investors is $1000. Investors will divide yearly dividends based on the rental income from the stores, less related expenses. Currently, Prince Edward Road stores with comparable rentals generate returns of 2 to 3%.