Another stumble in the Chinese stock market has coincided with a slight rise in the price of Bitcoin suggesting a correlation which is likely to continue until January.
With China’s crackdown on stock purchases by insurance firms and the current Chinese stock market outlook, there could be further switch to Bitcoin as a store of value or medium of exchange.
China’s insurance regulator banned an insurer from further investing in stocks on Friday for conducting short-term trading despite recent stock investment by a few major insurers have helped boost trading activity in the Chinese markets. The insurers were among the big decliners in the A-shares market on Monday. Reports also suggest that comments by U.S. President-elect Donald Trump on Sunday that there may be a change in the U.S.’s acceptance of the “one China” principle, a cornerstone policy that has helped maintain peace between China and Taiwan, also contributed to what hurt investors.
While the stock dropped to a six-month low, Bitcoin reaches multi-year high to hit $788 on Tuesday December 13 according to CoinMarketCap – almost a 2.5% rise from its $769 tag on Monday though the price has now been corrected to $780 at the time of this publication.
An article in the Wall Street Journal states that the downward trend in shares will likely continue until January based on a pickup in IPOs in recent months which is making investors expect an imminent wave of selling by shareholders whose stockholdings have been locked up since the companies in which they had invested were listed. This is because China requires existing shareholders of a listed company to hold their stocks for at least a year after the firm floats.
According to MarketWatch, shares in the Shanghai Composite Index ended down 2.5% to be the biggest one-day drop in percentage terms since June 13 with nearly 1,000 stocks in the red on Monday December 12 following the crackdown. On the other hand, the Shenzhen Composite Index was 4.9% lower.
Calculations by Sinolink Securities shows there is more than 370 billion yuan of such locked-up shares that will become tradable this month with a further 440 billion yuan of such shares coming up in January.
85% Of Canadians Are 'Aware' Of Bitcoin, Says Bank of Canada
The number of Canadians who own bitcoin nearly doubled over the course of a year, according to the results of a newly-published survey by the Bank of Canada.
Dubbed the Bitcoin Omnibus Survey (BTCO
Shanghai Stock Exchange: New Regulation 'Crucial' to Clear Way for DLT
Shanghai Stock Exchange (SSE), one of the world's largest securities trading venues by market capitalization, is eyeing the use of distributed ledger technology (DLT) in the securities market.
Cartier Owner Richemont Plans to Track Diamonds With Blockchain
Richemont, the Swiss luxury goods giant that owns Cartier, is turning to blockchain in a move aimed to bring transparency to its supply chain.
Jin Keyu, a renowned economist and an associate profes
Bank of Queensland Rules Out Crypto Purchases With Mortgage Funds
An Australian retail bank has revised its contract terms to prohibit borrowers from using loans such as mortgages to purchase cryptocurrency.
According a report from Australia Finance Review on Thu
Litecoin, Bitcoin Cash Are Latest Crypto Additions to Robinhood Investing App
U.S.-based mobile stock trading app Robinhood has added two new cryptocurrencies to its no-fee trading service.
The company said in an announcement on Thursday that litecoin and bitcoin cash have b
IT Giant Fujitsu Is Launching a 'Ready-to-Go' Blockchain Service
IT giant Fujitsu is launching a new consultancy service that it claims will deliver a "ready-to-go" minimum viable product in just five days.
According to The Register, prices for the service start
Binance Exchange Backs First-Ever Decentralized Bank in Malta
Binance, one of the biggest cryptocurrency exchanges in the world, is reportedly among a number of investors backing a decentralized bank to be launched in Malta.
Bloomberg reported Thursday that B
Report: More Than Three-Quarters of ICOs Were Scams
About half of the existing crypto-asset market today – numbering some 1,500 – functions on top of an existing blockchain like ethereum, according to a new report.
The study from Satis Group, which