Chinese IT Firms Deny Digital Currency Involvement as Shares Skyrocket

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 25, 2023

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Chinese tech companies have been hurridly issuing statements denying they are involved with digital currencies – as stocks in domestic IT firms continue to soar on exchanges in the Middle Kingdom.

And it seems that even though some leading companies have been going to great pains to distance themselves from the digital yuan, many Chinese investors are unconvinced, and are still snapping up tech shares at a rate of knots.

Earlier this week, multiple unconfirmed reports claimed a Chinese state-owned bank would begin real-world testing in May, leading to massive price surges in the stocks of companies that have previously been linked with digital currency-related innovation.

Per Sina, shares in Hebei Huijin Electromechanical (Huijin), a banking and financial equipment supplier, have risen up to 40% since the start of April, and markets have seen prices grow for three consecutive days since the digital yuan stories began circulating.

Huijin has issued an official statement, saying that its “main operations” do not include digital currency-related activities. However, this does not seem to have dissuaded many stock traders, with a further 3% rise in the company’s share prices on April 17.

Another company that has seen a large rise in share prices is Julong, which claims to be a “cash intelligent management and circulation management solutions” provider. The company issued a similar statement to Hujin’s, stating that its revenue flow does not include “direct business income derived from digital currency operations.”

Regardless, Sina reports that share prices in both Hujin and Julong continue to grow, along with Zhongying Internet, a major internet and crypto mining hardware player.

Newcapec, a smart card operator and applications specialist, is another company that has seen a sudden and unprecedented stock price rise in recent days. And mobile phone service provider Baibang has also experienced exponential growth in the past week.

Reports have claimed that the first people to use the digital yuan will be a selection of government workers in a testbed city, whose transport subsidies will be part-funded by digital currency payouts.