Crypto-related stocks dip in Hong Kong, bitcoin stabilizes

HONG KONG / SINGAPORE, Sept. 27 (Reuters) – Cryptocurrency-related stocks fell in Hong Kong on Monday morning, after Chinese authorities stepped up their crackdown on the sector, while major cryptocurrencies stabilized.

Shares of crypto asset manager and trading company Huobi Tech (1611.HK), a subsidiary of Huobi Global, one of the world’s largest exchanges, fell more than 30% after the bell of opening.

Huobi Global said on Sunday that it had stopped taking new mainland clients as of Friday and would close accounts owned by clients based in mainland China by the end of the year to comply with local regulations. Read more

Chinese regulators stepped up the crackdown on Friday, banning cryptocurrency trading and mining, and declaring that foreign exchanges are not allowed to provide services to mainland investors via the internet and that mainland Chinese-based employees overseas crypto exchanges are said to be investigated.

OKG Technology Holdings Ltd (1499.HK), a fintech and construction company majority-owned by Xu Mingxing, the founder of the OK Coin crypto exchange, fell more than 20%.

However, cryptocurrencies traded firmly on Monday, after rebounding from sales driven by the Chinese crackdown as downside speculators emerged.

Bitcoin rose about 2.4% in Asian trade to $ 44,250, after falling to just under $ 41,000 following Friday’s announcement of a blanket mining ban and crypto transactions in China – the most widespread crackdown to date. Read more

Rival Token Ether rose 3% to $ 3,163 and recouped its losses on Friday.

Reporting by Tom Westbrook in Singapore and Alun John in Hong Kong; Editing by Muralikumar Anantharaman and Jacqueline Wong

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