Beijing’s digital currency drives Chinese fintech stocks skyward
Fintech firms in China are seeing significant share price rises as investors look to cash in on Beijing’s digital currency, writes Jane Connolly.
Reuters reports that, despite there being no official timetable for the roll-out of the new currency – which will have some similarities to Facebook’s Libra coin – the CSI fintech theme index has gained more than 50% so far this year.
Electronic authentication services provider Beijing Certificate Authority has seen its share price hit a record high in September
This represents a much stronger performance than the broader market, reflecting the interest that investors are showing in fintechs. It is anticipated that security and payment services will be in even greater demand once Beijing’s digital currency is launched, making those firms attractive for investment.
According to Reuters, electronic authentication services provider Beijing Certificate Authority has seen its share price hit a record high in September, following a nearly 200% rise this year. Shares in 360 Security Technology, the country’s largest network security services provider, have leapt more than 50%.
The arrival of the sovereign digital currency appears to be imminent. Mu Changchun, deputy director of the People’s Bank of China’s payments department, stated in August that China was “almost ready” for launch.
