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Companies have put their stablecoin ambitions on hold after receiving instructions from Chinese regulators, including the People’s Bank of China and Cyberspace Administration of China, not to move ahead with the plans, the FT reported, citing people familiar with the matter.

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Under the new regime, any person who issues stablecoins in Hong Kong – or issues stablecoins backed by Hong Kong dollars, whether within or outside the city – must obtain a licence from the Hong Kong Monetary Authority.

PBOC officials advised against participating in the initial rollout of stablecoins over concerns about allowing tech groups and brokerages to issue any type of currency, the FT report said.

Reuters could not immediately verify the report. Ant Group, JD.com, PBOC, CAC and HKMA did not respond to requests for comment.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually pegged to a fiat currency such as the U.S. dollar, are commonly used by crypto traders to move funds between tokens.

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• In a recent announcement, EROAD downgraded its fiscal 2026 revenue guidance, reported up to NZ$150 million in North American asset impairments, and outlined a renewed focus on Australia and New Zealand alongside scaled-back North American activities.

• This shift comes as challenges in North America, including a key customer loss and slower enterprise sales, prompt the company to reallocate resources toward emerging opportunities in its core markets.

• With the company’s refocus on electronic road user charging in Australia and New Zealand, we’ll examine how this shapes EROAD’s investment narrative.

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To be comfortable holding EROAD shares right now, you’d need conviction in its ability to execute a fresh regional pivot following major shortfalls in North America. The company’s reset, moving growth focus and resources to Australia and New Zealand’s road user charging opportunities, marks a fundamental shift in its investment story. While previous catalysts centered on U.S. expansion and telematics innovation, the market’s sharp reaction to asset impairments and guidance cuts suggests near-term growth drivers will depend on how quickly EROAD can win or retain clients and secure contracts linked to new charging regimes in its home markets. The immediate risk is execution: reestablishing momentum in Australia and New Zealand is not guaranteed, and the heavy NZ$150 million impairment underscores uncertainty over any future North American contributions. The recent share price drop signals these risks are now firmly front and center for investors. On the flip side, the road to recovery in core markets comes with its own hurdles investors need to keep front of mind.

Despite retreating, EROAD’s shares might still be trading 43% above their fair value. Discover the potential downside here.

Seven members of the Simply Wall St Community estimate EROAD’s fair value anywhere from NZ$1.20 to NZ$4.96 per share. This wide range reflects big differences in expectations around EROAD’s growth rebound in Australia and New Zealand after its US setback. Comparing such varied outlooks with the company’s new strategic focus, it pays to see how your own view lines up.

Explore 7 other fair value estimates on EROAD – why the stock might be worth over 2x more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your EROAD research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

• Our free EROAD research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate EROAD’s overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ERD.nzse.

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