China has announced a ban on all purchasing and servicing activity related to crypto-currencies, in addition to the mining of it.
The move was announced on Friday in a joint statement from ten government bodies including the People’s Bank of China.
"Virtual currency-related business activities are illegal financial activities [that could] seriously endangers the safety of people's assets," read the statement.
Crypto activity, including mining, has been banned among domestic providers since 2019 but now overseas crypto exchanges are prohibited from providing services via the internet to mainland China, thereby closing a large loophole that existed around crypto trading in China.
And although the value of bitcoin dropped by US$5,000 in the immediate aftermath of the ban, prices had rebounded by Monday with bitcoin and ethereum rising by 7% and 15% respectively from their low points on Friday.
“We’ve seen little in the way of knee-jerk reaction from clients surrounding this news from China, said Freddie Williams, sales trader at UK-based digital asset broker GlobalBlock.
“We’ve also seen this before from China where news of bans have been reported over the years, but it has not prevented adoption of bitcoin and digital assets from continuing their upward trend.”
According to crypto commentators, the long-term implications of the move are also likely to be muted.
“While retail traders in China may no longer be able to access online exchange platforms that are now illegal, crypto funds may be able to move management of their funds offshore,” said Ganesh Viswanath Natraj, assistant professor of finance at Warwick Business School
“This ban will result in the migration of crypto investment opportunities to other hubs in Asia, such as Singapore's launch of the DBS digital currency exchange earlier this month,” he added.
© 2021 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
