Bitcoin does not respond to China’s 2 trillion yuan market stimulus plan | CoinDesk JAPAN

Chinese authorities are considering market stabilization measures worth 2 trillion yuan (approximately 40 trillion yen, equivalent to 1 yuan = 20 yen) to revive the sluggish stock market. The impact of this plan, which boosted markets in Hong Kong and mainland China with its expectations, does not seem to have spilled over to the price of Bitcoin (BTC).

At press time, Bitcoin was down 2.3%, below $40,000, according to data from CoinDesk Indices, which collects prices from multiple exchanges. Also, by noon Hong Kong time, CoinDesk 20 was down 2.5%.

Beijing plans to use state-owned enterprises’ offshore accounts and local funds to invest in onshore stocks through Hong Kong exchange links, as well as other measures yet to be announced, Bloomberg said.

Local stock market indexes reacted positively to the news, with Hong Kong’s Hang Seng index up 2% and mainland China stock index CSI300 up 0.15%. The Hang Seng Index was down 31% over the past year, while the CSI was down 23%.

The reported method of injecting offshore funds into mainland China’s stock market is aimed at increasing liquidity and credibility. Bloomberg also reports that additional support measures, ranging from regulatory changes to financial interventions, are awaiting leadership approval, with details yet to be finalized.

Recently, Chinese Premier Li Qiang emphasized the need to take stronger measures to revive stock prices.

For Bitcoin, CoinDesk previously reported that market dynamics have been significantly impacted by inflows into exchange-traded funds (ETFs) and record outflows from the Grayscale Bitcoin Trust (GBTC). .

Additionally, some analysts believe that if the People’s Bank of China takes steps to support the renminbi amid a declining stock market and a rising dollar, it could have a negative impact on Bitcoin’s price due to its inverse correlation with the US dollar. I think there is a possibility that it will be given.

David Brickell, head of international distribution at Toronto-based crypto asset platform FRNT Financial, said: “China is trying to maintain a relative veil of currency stability and prevent capital flight. “There is an incentive to keep a lid on BTC. Past events that put the renminbi under pressure coincided with Bitcoin’s underperformance,” he said in an interview with CoinDesk.

However, some market participants are more optimistic.

Greta Yuan, head of research at digital asset solutions company VDX, said: “China’s economic recovery will have a major impact on the global economy, so any stimulus or accommodative policies will be an encouraging sign for investors.” “The crypto asset market will also view such policies as risk-on and will take an active and innovative stance to expand the market,” he said in the memo.

On the other hand, India’s corporate performance remained strong and it overtook Hong Kong to become the world’s fourth largest stock market.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: Bitcoin Unphased by China’s Stimulus Plan