USDT Negative Premium Appears in the Chinese Market, While A-shares Market Shows Strong Growth Driven by Government Stimulus Policies, Prompting Chinese Cryptocurrency Investors to Reconsider Fund Allocation.
Recently, the Chinese market has seen a stablecoin USDT negative premium phenomenon, which has attracted widespread attention. According to verification by Dynamic Zone, Google Finance shows that the USD to CNY exchange rate is temporarily reported as 7.05, while the OTC trading price of USDT on Binance is quoted at around 6.92, with a negative premium rate of 1.878%, and even reaching over 2.5% at one point.
The negative premium of USDT usually occurs when market demand declines or liquidity is restricted. The community believes that this may be due to speculation traders wanting to sell USDT and switch to Chinese stocks. The discounted sale of USDT is to quickly raise funds in RMB, resulting in a price drop and negative premium.
After entering the Chinese cryptocurrency community, Dynamic Zone has observed that some investors have started considering fund allocation strategies in A-shares, indicating an intention to shift from the cryptocurrency market (such as Bitcoin and USDT) to the A-shares market. Investors in the group mentioned phrases such as “Preparing to switch to A-shares tomorrow” and “Should I sell U and invest in A-shares these days,” revealing plans to transfer funds from the cryptocurrency market to the A-shares market.
In recent days, some netizens have posted detailed information about multiple bank loans on social media platforms, with a total amount of up to 1.29 million CNY, stating that all these funds will be invested in the stock market for high returns. The netizen listed loan data from multiple banks and credit card institutions, including bank loans, credit card loans, and several other personal loans.
Dynamic Zone reminds that excessive use of loans for high-risk investments carries significant financial risks, especially in the highly volatile stock market, which may result in huge economic losses. Investors should carefully assess their risk tolerance and avoid financial difficulties caused by blindly pursuing high returns.
Another netizen mentioned in a comment that they have been “lying in wait for three years” for this stock market trend, with an initial investment of 500,000 CNY three years ago, but now only having 9,800 CNY left, intending to recover all the losses in this trend. This statement has attracted a lot of attention, with some people responding that this behavior is more like “being caught in a pyramid scheme,” expressing concerns about this operation.
As for the epic rise of mainland China and Hong Kong stocks, it is related to the Chinese government’s policies to stimulate the economy, such as reserve requirement ratio cuts, interest rate cuts, and increased lending.
The State Council Information Office of China announced at a press conference yesterday that the 700 billion CNY funds for “two-pronged” construction and one trillion CNY ultra-long-term special government bonds for “two new” have been fully allocated to local governments. However, Dynamic Zone reminds that the recent volatility in the Chinese stock market may further amplify, so please be cautious.
Related Reports:
Chinese Stocks Go Crazy Again! Securities App Overwhelmed, Economists Suggest Record Deficits to Accelerate Stimulating the Chinese Economy.
China Wants to Open Up! Former Deputy Minister of Finance Criticizes Cryptocurrencies for Being “Far Behind,” Urges Learning from US Policy Shifts.
The People’s Bank of China Officially “Injects 1 Trillion CNY” to Rescue the Market, Mainland and Hong Kong Stocks Soar, Shanghai Stock Exchange Briefly Experiences System Failure.