Sunday , December 22 2024
Home / Altcoins / Chinese Tech Stocks “Maxed Out” after Xi Jinping Touts Blockchain

Chinese Tech Stocks “Maxed Out” after Xi Jinping Touts Blockchain

Summary:
Stocks in Chinese blockchain A-share companies “maxed out” to their 10% daily limit after a president Xi Jinping focused the attention of the public to the potential of the technology encouraging digital currencies, increasing the rise in related stocks and Bitcoin, which for the short time, though, went over ,000.Xi said China should hurry up with its research into blockchain, the open ledger system that cryptocurrencies rely on. China’s central bank has been developing its own digital currency.Searches for the word “blockchain” on Chinese search engine Baidu rose more than 40 times in just two days after Xi’s comments and late on Friday, Bitcoin surged to hit ,000 that presented 42 percent gain – the highest intraday gain since 2011. By Monday morning, it traded at about ,370,

Topics:
Teuta Franjkovic considers the following as important: , , , , , , , , , , , , , , ,

This could be interesting, too:

Bilal Hassan writes Morocco to Become First Developing Country with Clear Crypto Regulations

Bilal Hassan writes Cryptopia Liquidators Distribute 0 Million to Victims of 2019 Hack

Bilal Hassan writes Mo Shaikh Steps Down as CEO of Aptos Labs to Start New Chapter

Bilal Hassan writes FTX Announces January 2025 as Effective Date for Reorganization Plan

Stocks in Chinese blockchain A-share companies “maxed out” to their 10% daily limit after a president Xi Jinping focused the attention of the public to the potential of the technology encouraging digital currencies, increasing the rise in related stocks and Bitcoin, which for the short time, though, went over $10,000.

Xi said China should hurry up with its research into blockchain, the open ledger system that cryptocurrencies rely on. China’s central bank has been developing its own digital currency.

Searches for the word “blockchain” on Chinese search engine Baidu rose more than 40 times in just two days after Xi’s comments and late on Friday, Bitcoin surged to hit $10,000 that presented 42 percent gain – the highest intraday gain since 2011. By Monday morning, it traded at about $9,370, and at the time of writing the price was $9,355. The price has more than doubled in 2019. However, it still hasn’t repeated a record hit in December 2017 when it was more than $20,000. The closest it came to this record was in June this year when it went over $13,000.

Be it as it may, shares of Nasdaq-listed Xunlei, a Chinese software company that offers blockchain-based services, rocketed by 107% on Friday, the largest single-day gain since the company went public in 2014.

On Monday the stock market rally was also reported by the Global Times, an English-language newspaper within the CPC-owned People’s Daily Group.

Also, the technology department chief at the People’s Bank of China (PBOC) Li Wei urged banks to build up their application of blockchain for digital finance products. Also, the 13th National People’s Congress in China (NPC) on Friday passed a cryptographic law whose purpose is making a friendly environment for the development of cryptography-based technologies.

The draft of the law says:

“Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.”

A huge increase of interest in Bitcoin, other digital currencies and blockchain could be seen in search data on WeChat, with investors connecting the top coin’s price lift with this surge in popular interest.

Co-founder of crypto investment holding firm Primitive Ventures, Dovey Wan tweeted a screenshot of the stock market boom in the domestic blockchain sector, saying that “as expected, almost ALL (over 100) blockchain-related Chinese A-shares hit the daily upper limit (10% intraday gain)”

At the same time, on global markets, Chinese technology companies such as the Shenzhen Xunlei Networking Technologies Co. jumped 107.76% to $4.82 – its highest daily rise since its listing in 2014.

Today, Oct. 28, Wan put the announcement:

BitPie was at the times one of the most popular Bitcoin wallets with the biggest market share among Chinese users. This partnership, as well as other expansions such as the cryptographic law, could mean China finally accepts the bigger picture and the potential in Bitcoin. Let’s not forget that back in 2013, China forbid financial companies to hold or trade Bitcoin.

Let’s also mention that the “refugee” blockchain platform Tron (TRX), formerly under intense scrutiny from Beijing, rose almost 25% on the TRX/USD charts over the last 24 hours.

It will be interesting to see reactions from the United States since last week Facebook’s CEO warned them at this possible situation. He said that “China is moving quickly to launch a similar idea in the coming months”. He was obviously – more than right.

Leave a Reply

Your email address will not be published. Required fields are marked *