Chinese investors are increasingly putting part of their portfolios in cryptocurrency due to the state of the national stock market. According to reports, investors are using exchanges like Binance or Okx, or Hong Kong local exchanges, to purchase crypto using payment methods like Alipay and Wechat, even when cryptocurrency is banned in the Chinese mainland.
Chinese Investors Seeking Earnings in Crypto
Cryptocurrency is making a comeback in China, as Chinese investors have turned to these looking for profitability as the national stock market is facing a slump. According to Reuters, even though purchasing and trading cryptocurrency has been banned since 2021, Chinese investors have found a way to allocate significant fractions of their portfolios to crypto.
These investors can use exchanges like Binance and Okx trading groups and traditional payment methods like Alipay and Wechat to purchase stablecoins from local dealers, entering the cryptocurrency investment arena. Also, over-the-counter exchanges exist, facilitating access to crypto.
A senior executive of a Hong Kong-based exchange confirmed these movements, stating that the current slump “has made investment on the mainland risky, uncertain and disappointing, so people are looking to allocate assets offshore.”
“Almost everyday, we see mainland investors coming into this market,” he remarked.
Not only individuals are trying to find opportunities in the cryptocurrency market. Institutions that have been hurt by the performance of the traditional investment markets are also seeking a way of changing their narrative.
The same senior executive stated:
If you are a Chinese brokerage, facing a sluggish stock market, weak demand for IPOs, and shrinkage in other businesses, you need a growth story to tell your shareholders and the board.
Chainalysis, a blockchain intelligence company, has confirmed that Chinese crypto numbers have bounced, reaching 13th place in global peer-to-peer markets in 2023, rising from 144th in 2022. Transactions amounted to $86.4 billion between July 2022 and June 2023, more than what was traded in Hong Kong in the same period.
What do you think about the rebirth of cryptocurrency as an investment tool for Chinese investors? Tell us in the comments section below.
source https://news.bitcoin.com/chinese-investors-are-turning-to-crypto-amidst-a-national-stock-market-slump/
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