Xi’s preference to blockchain to affect stocks in China Technology

Owning to President Xi Jinping’s announcement that Beijing wanted to foster the development of technology, Chinese investors have worked on every stock related to blockchain.

Reports allege the gains were enormous as Zhejiang Huamei Holding Co Ltd and Julong Co Ltd became one among 60 tech shares to climb up by a daily limit of 10% in Shenzhen and Shanghai. The 30% rally in Bitcon also augmented stocks with more intense connections to blockchain, such as baby-food producer Beingmate Co. along with selfie app developer Meitu Inc.

Xi had said China will grow its investment in blockchain technology, following which markets analysts have predicted how far an endorsement from Xi can help China.

“Most of these companies, especially those that are just beginning to state their connection with blockchain today, are trying to take advantage of the hype,” commented Li Shiyu, fund manager at Guangdong Xiaoyu Investment Management Co. “It shows how much excitement can be triggered by something stressed as a priority by the top man himself.”

The index of Shenzhen Information Technology climbed up to 5.1% on Monday which has also been one of its biggest advances in the past two months. Several other companies which are officially into blockchain businesses also rose by its limit. These include Hundsun Technologies Inc., YGSOFT Inc., and Easysight Supply Chain Management Co.

Furthermore, traders isolated Meitu because of its plans for an encrypted user-identification system.  Its shares also rose to as much as 30%. The American depository receipts of Chinese blockchain companies also increased on Friday.

Additionally, investors added pressure on other firms with regards to blockchain hype by means of an online Q&A platform which included submission of thousands of questions based on their technology plans.

“Please proactively make expansion plans in blockchain to jump on state policies — doing so would be the best reward to investors,” commented a shareholder of development-store operator Hunan Friendship & Apollo Commercial Co.