Bro, check this out: it looks like a bunch of Chinese investors are totally bouncing from crypto and diving right back into the bustling Chinese stock market. Like, what’s going on?
So, back in 2021, China decided to shut the door on crypto trading. But you know how it is—these mainland peeps aren’t just gonna stop trading. They’ve been sneaky, using overseas accounts to keep the crypto party going and dodge those pesky capital controls.
Now, here’s the deal: Tether’s USDT, the big dog of stablecoins, has been trading at a bit of a discount compared to the dollar since late September. That’s a sign, my dude! Dessislava Aubert, a savvy researcher over at some blockchain firm called Kaiko, is saying this drop happened right when China’s central bank dropped some measures to lighten the economic load—making stocks go on a wild ride!
Stablecoins are like the chill friends of the crypto world, keeping it steady like a poorly thrown frisbee. They usually hold their value 1-to-1 with something solid like the dollar. People use them to make moves and chill out from the crazy price swings of tokens like Bitcoin.
Livio Weng, the head honcho of Hashkey in Hong Kong, said if traders are running back to cash, it’s a hint that they’re panic buying those Chinese stocks. Crazy, right? Since China’s got the crypto trading pairs on lockdown, the dollar is flexing as the go-to way to track what’s popping, according to Aubert.
Now, let’s look at the numbers. Binance’s peer-to-peer marketplace shows that Chinese yuan traders are quoting USDT all over the place, like around 6.78-6.98 per yuan when the offshore yuan is hanging out at 7.07 per dollar. Classics, man!
Annabelle Huang from the Amber Group is seeing the signs too. She says there’s a correlation with onshore A shares going nuts. And get this: some brokerage firms were even open during the Golden Week holiday to rake in new customers. Talk about dedication!
But it’s not just the retail guys driving this. Laura Vidiella del Blanco from MNNC Group is saying some big-money players are shifting their cash to Chinese stocks too.
The Shanghai Composite Index seriously flexed with a 21% jump from September 23 to 30! And then it hit another 8% when trading fired back up on Monday. It’s like they’re riding a straight-up stock wave!
Huang wrapped it up nicely, saying that this year’s inflow into those OTC brokers in China is off the charts—like, “Unprecedented!” She joked that it’s the first time people might actually wish the national holiday was shorter. Can you believe that?
So yeah, bro, it’s a wild ride in the markets right now. We gotta keep an eye on how this plays out!
Source: https://finance.yahoo.com/news/panic-buying-chinese-stocks-weighs-180000147.html
