BY CNA team - September 29, 2018
Chinese middle-class not big on crypto investments
Despite fears of cryptocurrency’s destabilising influence on China’s financial system and the recent government crackdown curbing all such activities, investors in the country are said to be risk-averse where investing in such assets are concerned.
A report, the 2018 White Paper on the New Middle Class, published by Wu Xiaobo, a well-known academic and financial writer, noted that less than 10% of the country’s new middle class are invested in cryptocurrencies.
Investing in cryptocurrencies came in last of the 12 assets that the new Chinese middle class held, with property, fixed-term bank savings/wealth management products and stocks rounding up the top three.
According to TechNode, an online news site, this is the first time that bitcoin and other cryptocurrencies are included in the annual report, which is in its third annual publication.
Wu’s report suggests that Chinese investors are still wary around cryptos not just because they are mostly risk-averse but also due to the ban imposed on them since last September and it being far from the mainstream.
The report noted that only 9.2% of 100,000 individuals surveyed responded that they accepted an investment loss higher than 15% and given the volatility of cryptocurrencies, the likelihood that such investments will become more popular seems questionable.
Besides the individuals surveyed, Wu also gathered one million pieces of data from other sources. Among individuals surveyed, there must be an annual family investment budget of between 200,000 yuan to five million yuan and an annual family income of between 200,000 yuan and one million yuan.