President Xi Jinping’s endorsement of blockchain technology stirred a resurgence of interest in the country’s cryptocurrencies. As reported by BitcoinNews.com, the Chinese government standing committee, at the 12th national People’s Congress passed new laws to regulate cryptography which in turn will lead to the development of cryptocurrency and blockchain in the country. The increased Chinese interest in blockchain technology is spurring renewed hype in the industry which had cooled down a bit for a while now.

As reported by Bloomberg, amid the massive gains of more than 60 tech shares on Monday, Zhejiang Huamei Holding Co Ltd and Julong Co Ltd were the standout performers in Shanghai and Shenzhen. Moreover, there was a 30% rally in Bitcoin. A blockchain company, Xunlei Limited, also saw a 107% hike in stocks apart from the other blockchain companies such as baby-food producer Beingmate Co. and selfie-app developer Meitu Inc.

The Shenzhen Information Technology Index leaped by 5.1% on Monday, outdoing its 2-month performance. Blockchain-based companies such as Hundsun Technologies Inc, Easysight Supply Chain Management Co, and YGSOFT Inc also surpassed expectations.

Naturally, the stirred market sentiment is doing wonders for these companies. Li Shiyu, fund manager at Guangdong Xiaoyu Investment Management Co. said:

“Most of these companies, especially those that are just beginning to state their connection with blockchain today, are trying to take advantage of the hype. It shows how much excitement can be triggered by something stressed as a priority by the top man himself.”

Investors are also persuading other firms to jump on the blockchain bandwagon to make the most out of the situation. The entire setting is advantageous for the growth of the existing blockchain-related startups and is perhaps paving way for the birth of new ones.

 

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