Xi’s Accelerated Blockchain Adoption Pumps Chinese Shares
China president Xi Jinping’s announcement of blockchain development has caused a huge stir in the blockchain industry. All the blockchain-related share prices have increased and have received a huge boost as per Monday, October 28, 2019 analysis.
On the Shanghai and Shenzhen stock exchanges, over 60 tech stocks surged by 10%. Shares of Pantronics Holding rose by 67% on Monday in HongKong. The Shenzhen Information Technology Index also closed with a 5.3% surge. This surge is the highest recorded in 2019. Meitu shares surged as much as 30%. Other companies such as Hundsun Technologies, Easysight Supply Chain Management Co, YGSOFT Inc, rose by 10% limit. Hong Kong’s benchmark Hang Seng Index finished 0.8 % higher on Monday.
Chinese blockchain platform NEO also experienced quite a rise in the share price following China president’s statement. the platform’s NEO cryptocurrency pumped 40% to a high of $13.75.
The speech that created the stir:
“Xi Jinping: Blockchain is vital for China’s future”
President Xi Jinping gave a speech on Thursday, October 24th. He emphasized that blockchain will elevate China’s growth and add substantial volume to the Chinese industry. He urged the blockchain adoption in the country to happen soon as the world is going digital.
“It is essential for blockchain technology to play a bigger role in building China’s strength in cyberspace, developing the digital economy and advancing economic and social development,” Mr. Xi added.
Other Developments following the speech:
The Thursday speech of Xi Jinping was just a statement until it affected Bitcoin and other altcoin prices. Friday, October 25th saw a sudden price hike in Bitcoin as well as XRP price. Bitcoin price had crossed the $10k mark for a few minutes. The Bitcoin market is still in uptrend and analysts claim that the price will reach above $12k if the same growth remains constant.
China is all set to release its own national digital currency proposed in August 2019. The People’s Bank of China (PBOC) hs termed its currency as DCEP (Digital Currency Electronic Payment System ). The currency is in the final testing stage and will be released in November.