China Securities Index Co. (CSI) Fintech Theme Index has risen over 50% in 2019, outperforming the broader market.
Some stocks skyrocketing 200%
According to a Reuters report on Sept. 26, stocks of China’s fintech firms have seen a notable surge this year amid investors’ anticipation of China’s launch of its own digital currency as well as the demand it would generate for security and payment services.
As such, the CSI fintech theme index — which is composed
of A-Share stocks relating to fintech, including payment and
settlement, capital raising, wealth management and retail banking — has
gained more than 50% so far in 2019, the report notes. Another major
stock, Beijing Certificate Authority, which is focused on electronic
authentication services, seen a record high this month after soaring
almost 200% in 2019, according to Reuters.
No CBDC in the near future, PBoC says
Meanwhile, the People’s Bank of China (PBoC) recently denied
rumors that it would launch its own digital currency in the near term
as the bank reportedly claimed that it has no timetable to launch as of
Sept. 24. The plans were first reported in late August 2019, when a
local media outlet wrote that the PBoC was almost ready to launch its
government-backed digital currency in the wake of Facebook’s introduction of Libra white paper in June.
According to a report
from China-based publication the Business Times, some financial
analysts were expecting that the country would launch its
much-anticipated cryptocurrency on Nov. 11, which coincides with the
country’s Single's Day, one of the busiest electronic shopping events of
the year.
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