Thursday, May 19, 2022

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

The Takeaway:

China's fintech sector sees massive growth in the lead up to the digital yuan's launch. Fintech Theme Index increased by more than 50% this year. Head of People's Bank Of China earlier clarified that there is no set timeline as to when the digital currency would be launched.

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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 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Dorsey Gray
Dorsey Gray
Dorsey works in the oil and energy industry since he graduated as a mechanical engineer from Bagdad Senior High School. However, he loves to explore and write about the financial world while he sits in the balcony of his beachside room. Dorsey also loves to cook, but just for himself.

1 Comment

  1. The digital backed currency is a very good innovation if introduce now and the future for proper settlement of trade in every region.

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