Stock and Crypto Prices Hike as China Looks to Develop Blockchain Technology
On Thursday, the 24th of October, after a collective study conducted by the Chinese government, plans were announced to start promoting research and development of blockchain technology in the country to make it a core innovative platform for future projects.
Chinese President Xi Jinping underlined the importance of blockchain technology integration into new technology projects with a long term aim being improved innovative I.T. sector in China.
President Xi Jinping said stated,
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation”
Following important comments, from Xi Jinping, Chinese technology-related enterprises saw a massive hike in prices of their stocks. Most companies involved in the industry saw a daily growth of 10% or more, according to reports in Chinese media.
Astoningashly, Xunlei, a multinational technology company listed on Nasdaq, saw it’s stock prices fly sky-high, showing an increase of 107.8% overnight. Bitcoin and major altcoins also clear took advantage of the Chinese government’s decision as their prices rose by double digits with Bitcoin breaking the important psychological level of $10,000 on Friday.
Xi Jinping’s public comments and support of blockchain technology had a huge influence on volumes for blockchain-related keywords on Chinese search engine Baidu and messaging app WeChat. The term “blockchain” was search 72,049 times on Baidu on Friday, a 1382.79% increase compared to the day before.
According to sources in China, the Shenzhen Stock Exchange interactive website registred over 450 questions regarding blockchain in just two days. The same platform had roughly only 1,000 questions asked about blockchain technology in the span of three months.
Even though cryptocurrency trading is still banned under Chinese law, the government seems to be taking a more pro-active approach to the blockchain industry and digital currencies in general. Back in August, the Chinese government had announced its plans to look into the development and launch of a government-backed cryptocurrency. Surely laws and regulations will have to be changed and adapted accordingly.
The state media quoted government officials in regard to their changing view of blockchain technology, “the cryptography [law] is aimed at standardizing the application and management of passwords, promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized, and legalized level of password management”
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