China state media asks investors to stay ‘rational’ as blockchain-related stocks soar after Xi’s endorsement

China • October 29, 2019, 5:11AM EDT
UPDATED: October 29, 2019, 9:43AM EDT
crystal51/ shutterstock

The People’s Daily newspaper, published by China’s ruling Communist Party, has urged investors to keep calm as blockchain-related stocks jumped after Chinese President Xi Jinping publicly supported the technology last week.

“Blockchain’s future is here but we must remain rational,” said the newspaper in a commentary late on Monday, as reported by Reuters. The People’s Daily added that Xi’s support for blockchain technology does not equate support for cryptocurrencies.

“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,” said the newspaper.

The commentary sent the Shenzhen Stock Exchange Information Technology Index down 2.8%, the biggest drop in a month, according to a Bloomberg report. Yesterday, over 60 blockchain-related stocks surged by 10%, the daily limit, after the president said China should take a leading position in blockchain development.

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Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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