- China’s sinking economy is reportedly leading investors to buy crypto.
- China’s economy has made investment on the mainland “risky,” according to a senior executive.
- Decrease in crypto activities in Eastern Asia is due to China’s crypto ban.
The downturn in the Chinese economy and the plummeting of the Chinese stock markets are leading investors to move their money into cryptocurrencies, according to Reuters.
A recent report highlighted Finance Senior Executive Dylan Run, who started to add more cryptocurrencies to his investment portfolio in early 2023 upon realizing that the Chinese economy was “going downhill.”
Run reportedly used bank cards issued by small rural commercial banks to buy crypto through gray-market dealers, as crypto trading and mining have been banned in China since 2021.
Moreover, Run’s crypto investments were up 45%, and he owned approximately 1 million yuan worth of crypto. The report claimed that Run’s crypto investments accounted for half of his investment portfolio, whereas 40% were in Chinese equities.
A senior executive of a Hong Kong-based crypto exchange who declined to be identified shared with Reuters that China’s economy has “made investment on the mainland risky, uncertain, and disappointing.”
Furthermore, Reuters reported that people in China were able to trade tokens on crypto exchanges or through over-the-counter channels. Moreover, investors in mainland China can choose overseas banks or exchanges to buy crypto assets.
As for Hong Kong, reports said, “Chinese citizens are also using their $50,000 annual forex purchase quotas to move money into cryptocurrency accounts in the territory.” However, the money can only be used for purposes such as overseas travel or education.
A previous report showed that China’s ban on several forms of crypto-related activities led to a decrease in crypto activities in Eastern Asia. Nevertheless, despite the ban, the Chinese crypto market reportedly recorded $84.6 billion in transaction volume between July 2022 and June 2023, surpassing Hong Kong’s volume.
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