It seems that the decision of the Chinese State Council at the end of May to take action against Bitcoin mining and also activities related to cryptocurrencies is beginning to be reflected in the country's economic downturn.
Mike McGlone and Senior Commodity Strategist at Bloomberg Intelligence as well as Hedge fund manager Anthony Scaramucci are among the first experts to point out this situation.
According to Mike, China's attitude to the crypto industry, specifically the rejection of this type of company, could trigger the country's economic decline.
“China’s rejection of open-source software crypto-assets may mark a plateau in the country’s economic ascent, we believe,” says Mike McGlone
The second, Anthony Scaramucci, commented on the current situation by comparing the Chinese government's regulatory measures and bans to “Tiananmen Square moment of capitalism”, which means that the country wants to gain control of the country's business leaders.
Trustnodes, which reproduced these expert’s statements, also pointed out that the shares of well-known Chinese companies are already declining.
These companies include, for example, stocks in in TAL Education (TAL) -54%, New Oriental Education & Technology (EDU) stock -48%, shares of Gaotu Techedu (GOTU) -59% and shares of 17 Education & Technology (YQ) are also -40%.
As for country indices, the Shanghai Index dropped -0.7%, the Hang Seng Index is down by -1.45%, the MSCI China Index has dropped -20% since February.