Shanghai Stocks Hit 10-Year High While Hong Kong Crypto ETFs Sink
Shanghai stocks reached a decade high driven by geopolitical concerns, contrasting sharply with falling Hong Kong crypto ETFs.Summary
Shanghai's benchmark index closed at its highest level since June 2015, fueled by Chinese investors flocking to energy, gold, and defense stocks following the Iran conflict. This rally, occurring alongside tightening domestic liquidity ahead of the National People's Congress (NPC), highlights a structural divergence from Hong Kong, where the Hang Seng Index fell, and listed crypto ETFs declined significantly. Mainland Chinese investors are barred from directly accessing Hong Kong's spot crypto ETFs, and with onshore markets supported by Beijing's policy toolkit during external crises, there is little incentive for capital to seek volatile alternative assets like crypto. Bitcoin has also struggled to act as a safe haven during the conflict, suggesting that gold remains the preferred safe asset for Chinese investors while crypto faces downside pressure.
(Source：BeInCrypto)