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China's state media warns on blockchain frenzy that President Xi started
[SHANGHAI] China's state media said investors should avoid speculative behaviour after comments by President Xi Jinping sent blockchain-related stocks surging on Monday.
"The future is here for blockchain, but we need to stay rational," the People's Daily said in a commentary.
More than 60 tech shares surged by the 10 per cent daily limit in Shanghai and Shenzhen on Monday, and Bitcoin rallied after Mr Xi said China will increase investment in blockchain technology.
Regulations for blockchain need to be improved as the technology is still at an early stage, according to the People's Daily commentary, which was published on the WeChat account of the paper's opinion department. Technical innovations on blockchain aren't the same as speculative trading of virtual currencies, it said.
Bitcoin was down 2.1 per cent to $9,256.
Chinese investors are no stranger to speculative trades - so far this year they've chased stocks linked to the next generation of telecom network 5G, industrial cannabis and hog breeders. While these stocks often offer some quick gains, the stakes are just as high once the trades unravel quickly.