Chinese Stocks Slump Big as ETH and BTC Spring Forward

Chinese Stocks Slump Big as ETH and BTC Spring Forward

With the recent events, financial experts will have to admit that the traditional market is highly volatile. That is against the popular narrative that the crypto space is the only volatile industry. China’s declining stock market shows that the traditional market is susceptible to volatility too.

The last few days had two giant Chinese stock indexes having the worst performance among the Asia-Pacific markets. According to CNBC, the CSI 300 plunged by 8.3%, while the Hang Seng index lost 7.88% by this time of the year.

Most individuals believe that the current decline comes from China’s regulatory moves on crucial sectors such as food and delivery, technology, and education. Renowned tech firms like Tencent, Meituan, and Alibaba are among the victims of the efforts by the regulators.

Moreover, US-listed China’s firm’s stocks dropped as Beijing launched clampdowns on education tech firms that offer services like tutoring. For instance, New Oriental witnessed its stock plunging by 60% at the market opening on 23 July.

Keep in mind that this is the biggest stock fall that China has seen since the financial crisis in 2008. Researchers observed that the Golden Dragon Index, NASDAQ listed, has declined by 15%. Remember, the index has lost 45% since February, losing about $770 billion. That comes as international and local investors sell massively to escape ongoing China’s clampdowns.

Despite the criticisms, the crypto market has thrived. For instance, the two market rulers, Ethereum and Bitcoin, have registered significant gains.

Stats show that BTC investors still enjoy profit regardless of the coin’s massive falls in 2021. As of now, most digital assets appear to launch recoveries as BTC surge 36.57% in seven days, while ETH is on a 21.35% week high.

For now, some analysts view China’s stocks decline after banning BTC miners as ironic. The nation has incurred massive revenue losses after banning Bitcoin mining. For now, it appears to lose more by attacking reputable tech firms, stage-managing their volatility.

What do you think about China’s economy with its fintech attacks? Is the nation preparing an environment to ensure a safe market boom in the future? Comment your views below.