China’s Fintech Theme Index surges ahead of digital yuan launch

China is planning to launch the digital version of its national currency. In the lead-up to the launch, the stocks of fintech companies in the country are soaring. The CSI’s (China Securities Index Co.) Fintech Theme Index has gained over 50% so far this year and outperformed the broader market.

Beijing Certificate Authority’s shares soared over 200% and reached an all-time high this year. The company provides electronic authentication services. China’s biggest network security services provider, 360 Technology Inc, saw its share jumped more than 50%. 

Earlier, head of People’s Bank of China clarified that there is no set timeline to when the digital currency would be launched, but the work is in progress. The central bank-backed digital currency is being introduced by the government to compete with the growing use of cryptocurrencies and soon to be launched Facebook’s Libra. 

According to the Reuters report, Soochow Securities said that they believe PBOC would probably continue to use the current infrastructure of commercial banks. Earlier in August Mu Changchun, deputy director of the People’s Bank of China’s (PBoC’s) payment services said that the bank is almost ready to launch the