Initial coin offerings (ICOs) are the method by which many new bitcoin-like cryptocurrencies inject liquidity into their systems when they launch. As with an initial public offering (IPO) of shares on a stock exchange, early investors can profit if the value of the asset they buy goes up. But they can also lose their shirts if its value declines, and the opportunities for fraud in an ICO are many.
Bloomberg reports that “the National Internet Finance Association of China, an organization endorsed by the State Council and top finance and banking watchdogs,” has issued a warning to investors in ICOs:
ICO projects have unclear assets, no investor suitability standards and gravely lack information disclosure and therefore have relatively high risks… Investors should keep a clear mind, stay on high alert for frauds and report any wrongdoings to the police department.
As a result of the warning, “ICOINFO, China’s second-largest ICO exchange by value of funds raised, said in a statement Wednesday that it has suspended all ICO-related activities,” according to Caixin. The company said it would resume hosting ICOs after they have clarity from the relevant regulators.
The Chinese government has tacitly encouraged the development of bitcoin and other cryptocurrencies, but is is very clear that like all fields of business, information, finance, and culture, the government will have the last word on how everything is run.
- Puerto Rico
Bankrupt Caribbean paradise woos Chinese tourists – and their cash / Bloomberg
A whole lot of ganbei drives Moutai’s market value to half the GDP of its home province / SCMP
Mighty month for metals sees aluminum to zinc gain on China cues / Bloomberg
- Macro trends
China official manufacturing PMI is 51.7 for August, above expectations / CNBC
China factory-price optimism surges but not everyone’s convinced / Bloomberg
Yuan’s outperformance widens with biggest jump in seven months / Bloomberg
China’s leading banks looking up / Caixin
Anbang, units cut stakes in major Chinese banks in second quarter / Caixin
Bank of China quarterly profit surges 23% as bad loans curbed / Bloomberg
- Gray rhinos (?)
China’s Fosun posts 34% profit jump / FT (paywall)
Brushing off Beijing’s tougher stance on deals, Fosun posts profit jump / Reuters