Shares in Chinese FINTECH companies are soaring as investors forecast increased demand for payment services after the launch of the state-owned digital currency.
Thus, the CSI index focused on the FINTECH industry grew by more than 50% in 2019, showing better dynamics compared to other similar instruments. Shares of the Beijing certification center, which provides electronic authentication services, rose almost 200%. In addition, the share price of the largest provider of network security services 360 Security Technology Inc increased by more than 50%.
In August, Mu Changchun, Deputy Director of the payment and settlement solutions division of the People’s Bank of China (PBOC), said that the regulator has almost finished developing the state digital currency and is ready to introduce it in the near future. Facebook’s wechat and Alipay platforms will make the tool available, according to Changchun, similar to the Libra cryptocurrency being developed by Facebook.
As noted by Reuters, investors rushed to invest in FINTECH companies, while not having clarity about the timing of the launch of the financial instrument. According to The statement of the Governor of the Central Bank of Yi Gang, at the moment they do not have any schedule or plan for the implementation of the cryptocurrency.
According to representatives of the brokerage firm Soochow Securities, various companies, representatives of the banking and IT industries, as well as developers of electronic wallets will be involved in servicing the digital currency and ensuring its circulation.
“We think that the Central Bank of China will continue to use the current infrastructure of commercial banks, and smartphones will be the main carriers of personal digital currency,” the company said.