TechFlow news, October 7 — According to CoinDesk, recent strong rebounds in China's stock market, driven by stimulus policies, may be drawing capital away from cryptocurrency markets and other Asian equities. Since late September, Chinese stocks have surged 20%, while Bitcoin prices have remained largely flat. Danny Chong, co-founder of a multi-staking protocol and co-founder of the Singapore Digital Asset Association, said: "Even with a 3% to 5% cost of converting USDT into stocks, the potential 50% to 70% upside in Chinese equities still makes them a rational choice."
However, Chong believes this capital shift could be temporary. He added: "Once the recent upward momentum in China's stock market stabilizes, we expect funds to flow back into the crypto market." Since September 24, the Shanghai Composite Index has risen over 20%, reaching its highest level since May 2023. The Hang Seng China Enterprises Index has gained more than 25%. This rally has been fueled by a series of stimulus measures, including interest rate cuts, liquidity support for the stock market, capital injections into the banking system, and commitments to stabilize property prices.
