China shares have biggest daily gain in 2 months

HONG KONG – China shares posted their biggest gain in more than two months on Monday, led by the financial sector as investors cheered the most sweeping economic and social reforms that Beijing has announced in nearly three decades. The CSI300 of the leading Shanghai and Shenzhen A-share listings closed up 3.3 percent at 2,428.9 points, while the Shanghai Composite Index jumped 2.9 percent. This was their biggest daily gain since September 9. Gains came in markedly stronger volumes, Shanghai recorded its heaviest trading interest in about a month. China unwrapped its boldest set of reforms in nearly three decades on Friday, relaxing its one-child policy and further freeing up markets in order to put the world’s second-largest economy on a more stable footing.

China’s ‘boundless’ bitcoin boom is driven by savings ethics

George Frey/Getty Images/AFP

 

The opportunities for Bitcoin in China are “boundless” as the Chinese, famous for their big saving, are now using the cryptocurrency to save and invest, according to the co-founder of country’s largest exchange.

“The main reason why Bitcoin has become big in China is  because Chinese people are savers, and more people are seeing  Bitcoin as a way to store and invest their money,” Linke  Yang, vice president of BTC China, China’s largest Bitcoin  exchange founded in 2011, told AFP at a conference in Singapore.

Famous for currency manipulation, investors wonder if the Chinese  government will step in and restrict Bitcoin trading. The yuan is  under strict government controls to keep economic risk low and  control flow in and out of the borders.

So far, virtual currencies are banned in online and gambling  sites in China, because of the dangers of anonymity.

Chinese demand has widely been cited as a main driver in  Bitcoin’s increasing value. At the time of publication, the  e-money was trading at its all-time high of $451.20 (2,479 yuan).  Access to Bitcoin trade on BTC China is currently limited to  Chinese traders.

The platform has $709,038.04 in Bitcoins.

“The ‘yuppies’, or upper middle-class in China will drive  demand for Bitcoin especially with the amazing uptake of  e-commerce going on now,” Zennon Kapron, director of a  Shanghai-based a financial consulting firm, told AFP.

The extremely volatile virtual currency keeps rising, and has  been on an extraordinary winning streak, with BTC China prices  already up 100 percent since late October.

Yang thinks Bitcoin gained in popularity following a recent  broadcast of a documentary on state-run China Central Television.

China has been especially optimistic about the new digital  currency, which if it becomes a norm in currencies, could bypass  banks and government-issued currencies.

Though it has no intrinsic value and isn’t backed by a government  or bank, Bitcoin has become a hot commodity to trade, similar to  gold as it’s a way to save and hedge against normal FOREX  currencies.

BTC China, China’s leading exchange, recently surpassed  Japan-based Mt. Gox in terms of global trading volume.     Since its inception in 2008 by a man using the alias “Satoshi  Nakmoto”, Bitcoin has gone mainstream and can be used to buy  coffee, pay for online dating services, and can even be retrieved  from an ATM. According to Bitcoincharts, which follows the  anonymous currency, there are nearly 12 million Bitcoins in  circulation.

The re-emergence of the Silk Road, an illicit  website that traffics drugs and is mostly powered by Bitcoin  transactions, has prompted the US Senate to investigate the  validity of the currency.

On October 26, a Chinese bitcoin trading site suddenly shut down  and up to $5 million in bitcoin disappeared.

“We focus on our own growth in China, and not on the negative  news surrounding Bitcoin,” Yang told AFP.

On November 18 the Senate Homeland Security & Governmental  Affairs Committee will scrutinize virtual currencies, including  Bitcoin and hold a hearing entitled “Beyond Silk Road: Potential  Risks, Threats and Promises of Virtual Currencies”.