Crypto coins are soaring, as the People’s Republic of China pushes for stricter regulation to curb speculative speculation.
On Sunday, the People for a Better Tomorrow, a Beijing-based trade union, said its members would protest on Sunday and Monday over reports that China’s central bank was planning to cut its benchmark interest rate, and to impose an even tougher cap on cash transactions in the coming days.
The protests, which are not connected to the central bank, could also trigger a stampede of cash withdrawals to the Chinese market, said Yu Jiawei, director of the China Securities Regulatory Commission, who was not authorized to speak publicly on the matter.
The central bank has repeatedly said that the central government is not trying to create a financial black hole, but rather to prevent an economic meltdown.
The People’s Bank of China said last week that it would cut the benchmark rate to 1.5 percent by April, a move that will be accompanied by the first cut in the central bankers interest rate since January.
That rate cut was seen by some as the Chinese central bank taking steps to shore up its own economy.
The stock market has rallied since the PBOC announced the rate cut, and the Shanghai Composite Index rose 1.3 percent to 1,865.89 points on the day.
On Monday, the benchmark Shanghai Composite fell 3.3 points to 3,928.59, and on Tuesday, the Shenzhen Composite lost 0.3 point to 3.49, the Sichuan Composite 0.5 point to 2,979.36, and Hong Kong’s Hang Seng dropped 1.2 point to 5,838.88.
On Friday, China’s stock market closed down 1.7 percent for the first time since the end of 2015 amid fears the central banking system could be in a “critical” state, and a rise in China’s currency could force a devaluation.
China’s central banks chief has said it is not targeting the value of the renminbi, the country’s currency.
The country’s stock markets, which have been hit by a string of high-profile currency debacles over the past several years, have rallied in recent weeks as investors have sought more safe haven in the renmium and have sought to hedge against rising risk in China.
On Tuesday, China suspended the sale of bonds to companies and individuals in the currency market after a ban on foreign investment in the country was lifted.