Chinese Blockchain Stocks witness a Soar in Prices

China's interest in blockchain and cryptocurrencies is rising. With the government's efforts in pushing for a Chinese digital currency (Read More) and pursuing more research in regards to the utility of blockchain technology in cross-border financing (Read More), the soar in Chinese blockchain stocks comes as no surprise.

The PanDaily reports that China's president, Xi Jinping, encourages those endeavors related to blockchain and crypto assets and stresses on how important it is for China to deepen its reasearch and development concerning those topics in order to instigate more technological innovations in the country.

Following his remarks, blockchain companies witnessed a rise in stock prices. To name a few, Fujian Forecam Optics saw a 15.79% rise in stock prices and Shanghai 2345 Network, Insigma Technology, Brilliance Technology all hit the daily 10% growth cap. Xunlei, a Chinese multinational technology company listed on NASDAQ, saw its US stock prices rise by 107.8% overnight.

Not only that but on the interactive platform of the Shenzhen Stock Exchange, around 500 questions were asked in less than two days regarding blockchain. A relatively high number compared to the 1,000 questions asked over the last three month period.

Yu Pengyi, columnist and writer for Guanchazhe (Social Watch), writes “The wave of investment in ‘blockchain’ was expected. But for those who really want to invest in new technology, they should not blindly estimate the value of blockchain. The technology can only reach its maximum potential after the corresponding provisions have been made. This is also the key to General Secretary Xi Jinping’s emphasis placed on ‘promoting’ and ‘exploring’ blockchain".

He hopes that the vast potential behind blockchain technology is acknowledged and hopes that the government's efforts in popularizing it helps purify the financial industry.