Blockchain and Crypto have a complicated status in China: Beijing says no to crypto but yes to blockchain. It bans trading yet builds infrastructure.
Now, with Hong Kong offering regulated crypto markets, insiders say a loophole is emerging.
If China already allows investors to buy U.S. stocks through its Qualified Domestic Institutional Investor (QDII) program, why not bitcoin? The key, one expert argued on stage at Consensus Hong Kong, is control, and Beijing may have just found a way to keep it.
In China, there are two systems for mainland investors to buy and sell stock outside the country. First, there’s QDII, which allows select investors to buy U.S. ETFs using RMB.
Then there’s also the Shanghai-Hong Kong Connect and Shenzhen-Hong Kong Connect, which let Chinese investors buy and sell Hong Kong stocks through mainland securities firms, with all trades settled in RMB.
“The key [with these systems] is that capital never flows…
