More and more frequently, Bitcoin news announces that established companies are investing in cryptocurrencies. It is all the more remarkable when it concerns companies listed on the Hong Kong stock exchange and buying coins on a Hong Kong Bitcoin Exchange. Because normally the government in China views cryptocurrencies very suspiciously in general.
It should be clear to every investor by now that Bitcoin, Ethereum and other cryptocurrencies have already entered the mainstream. More and more companies are also investing in Bitcoin, although not necessarily companies from the Hang Seng Index.
The Chinese company Meitu, for example, recently announced that it had bought Bitcoin with part of its cash reserves. In addition, Meitu also invested in Ethereum. A total of 40 million dollars was spent on this, 17.9 million dollars for Bitcoin and 22.1 million dollars for Ethereum.
The reason given for the investment in Ethereum in the latest crypto news was that the company wants to gain a foothold in the blockchain industry. In total, the board can buy 100 million dollars worth of Bitcoin and Ethereum. It can fall back on the company's cash assets.
Infoexness states that: "ดังนั้นจึงไม่มีการกู้ยืมเงินเพื่อลงทุนใน crypto. ทันทีที่ บริษัท หรือนักลงทุนเอกชนกู้เงินเป็นจํานวนมากเพื่อลงทุนใน Bitcoin และ cryptocurrencies อื่น ๆ ที่ พื้นที่ส่วนบุคคล Exness นี่จะเป็นข้อบ่งชี้ที่ชัดเจนว่าตลาดมีความร้อนสูงเกินไปอย่างชัดเจน."
"So no loans are taken out to invest in crypto. As soon as companies or private investors take out loans on a large scale to invest this money in Bitcoin and other cryptocurrencies, this would be a strong indication that the market is clearly overheated."
Asian companies invest in the Hong Kong Bitcoin Exchange
The fact that a company largely unknown to Europeans is investing in a Hong Kong Bitcoin exchange is not particularly spectacular in and of itself. What is more remarkable is the fact that it is a company that is listed on the Hong Kong Stock Exchange (although not in the Hang Seng Index, the equivalent of the DAX), and is also very active in mainland China.
This is because, in general, the government in Beijing is very suspicious of cryptocurrencies. For example, all crypto exchanges are banned in China (mainland China). Currently there is also a China Bitcoin ban and recently also a crypto ban in India.
Meitu is also based in mainland China. More precisely, in Fujian province. However, its legal seat is in the Cayman Islands, outside the reach of the Chinese government. Nevertheless, not only the step, but also the publicising of this news is remarkable, as it provokes the Chinese state in a certain way.
In Hong Kong, which is considered a special administrative region of the People's Republic of China, crypto exchanges are still allowed. Trading with Bitcoin & Co. is also possible there. Therefore, companies that want to invest in crypto go via a Hong Kong Bitcoin Exchange.
Of course, there is no one Hong Kong Bitcoin Exchange. This means that companies, or even private individuals, trade via crypto exchanges that are accessible from Hong Kong or even have their headquarters there. Exness may therefore also have bought the coins on a Hong Kong Bitcoin Exchange.
The End
When the latest crypto news came out that China was banning all crypto exchanges in the country, most exchanges moved abroad, for example to South Korea or Japan, due to fears of an impending China ban on cryptocurrencies.
