China’s state newspaper urges investors to stay rational with blockchain investment

People’s daily newspaper published by China ruling communist party on Monday urged investors to remain rational as stock prices of blockchain firms or tech firms believed to be engaged in blockchain business sore to 10% after China’s President Xi positive comments on the blockchain technology.

The Chinese government started cracking down the cryptocurrency and blockchain startups in 2017, shutting down all local cryptocurrency trading exchanges followed by regulators restrictions to operate blockchain-startup in China.

President Xi’s comments were the first time China had publicly shown interest and support for the blockchain technology. Since his address, it sparked a rush for blockchain firm stocks in China coinciding with the Bitcoin price rally.

Reacting to high speculation in China’s blockchain stocks, the People’s Daily newspaper commented late Monday cautioning investors that “Blockchain’s future is here but we must remain rational”. It adds, “The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies”. Source: Reuters.

Following China state newspaper comment, today shares closed lower with the blue-chip CSI 300 index down by 0.42% and CSI IT index dropping by 2.62%.