Chinese residents continue to buy bitcoin and other cryptocurrencies, although the government is working hard against this activities.
Last September, the Chinese governmentclosed the country's largest exchanges (BTCC China, Huobi and OKCoin), and banned their leaders from leaving the country until the investigation was completed. However, the trading volume on the part of Chinese investors also continues to grow. So how did they get around the ban and use the Hong Kong stock exchanges?
In December, these exchanges moved to Hong Kong, wherethere is a huge demand from investors. The conditions for setting up a business in Hong Kong are pretty simple. Since the end of 2017, many Chinese investors have transferred their savings to Hong Kong bank accounts, allowing them to bypass the Chinese government's ban.
But at the same time, in Hong Kong, the demand forcryptocurrency significantly exceeds the supply. Due to the general excitement, the cost of cryptocurrencies in the local market is higher than the average. Thus, the average price of bitcoin was $ 11,500, and its price on the now Hong Kong exchange Huobi Pro exceeds $ 13,000. Consequently, many users, and not only from China, enjoy the benefits of arbitrage, because buying bitcoins on Coinbase and selling it in the Hong Kong market can earn $ 1,200 per coin.
At the same time, Hong Kong started using popular Chinese fintech apps (Alipay, which is valued at $ 60 billion and WeChat Pay, which has also grown significantly).
Although the government and central bank of Chinarequire a report on all "suspicious" transactions related to Hong Kong, in order to prevent the Chinese from buying cryptocurrency, they will not be able to restrict the use of these applications.
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