NewsDialy
Investors locked out of China's domestic equity market are routing money through cryptocurrency exchanges to gain exposure to Chinese AI stocks.
The vehicle is a product called perpetual futures: a derivative contract that tracks an asset's price indefinitely, with no expiration date, and no requirement to hold the underlying shares.
That design makes it possible to replicate the economics of owning a Chinese stock without formally entering China's restricted financial system.
The controls these traders are sidestepping China maintains strict limits on how foreign capital enters and exits its domestic equity markets, a system broadly called capital controls.
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