- China stock investors could suffer from the shock collapse of US lender Silicon Valley Bank Financial group according to a recent report by Reuters.
- China’s CSI300 Index dropped nearly 4% last week, while Hong Kong’s Hang Seng tumbled 6%.
- The China coin narrative is gaining relevance with the recovery in NEO, VET, Conflux and Alchemy Pay prices.
China’s stock investors are hit by the shock collapse of US lender SVB Financial Group, according to a Reuters report. The sentiment among market participants was dampened over the collapse of the bank, it is being considered a barometer of macro risks.
Also read: How contagious is Circle’s USDC contagion: Will US Fed bail out crypto-friendly banks?
Why the China coin narrative could make a comeback
Crypto Twitter was abuzz with the narrative of Chinese coins, Neo (NEO), VeChain (VET), Conflux (CFX) and Alchemy Pay (ACH) ahead of the tumultuous events of the past week. Interestingly, according to a Reuters report China stock investors’ sentiments have been dampened by the shock collapse of Silicon Valley Bank Financial Group.
Yuan Yuwei, a hedge fund manager at Water Wisdom Asset Management was quoted as saying:
The SVB failure is a barometer of macro risks ... reflecting how asset prices are being impacted by central bank rate hikes.
Despite the widespread uncertainty in the crypto market, cryptocurrencies dubbed as China coins, NEO, VET, CFX and ACH witnessed a steady recovery in their prices. The four cryptocurrencies have climbed nearly 5-7% since Saturday.
Since stock investor sentiments are dampened it is likely that traders diversify, into cryptocurrencies. This could bring back the China coin narrative, driving the prices of assets like NEO, VET, CFX and ACH higher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Mastercard to settle stablecoin transactions in Asia-Pacific region with Australian platform

Stablecoins have long been considered the safer option for bringing crypto to the world. However, the recent few instances of stablecoin collapses have raised concerns regarding the same as well. Even so, Mastercard is attempting to widen its reach in the Asia-Pacific (APAC) region.
How IMX could respond to Immutable's new partnership with Polygon Labs as gaming tokens trend this week

Immutable X and Polygon Labs have partnered for Web3 game development acceleration. The partnership comes ahead of launching a zkEVM-powered platform for studios and developers and a day into the GDC. The news could fuel a 43% upswing for IMX as the hype around gaming tokens continues.
Bitcoin price nears $30,000 despite banking crisis; First Republic Bank crashes by 47% in a day

Bitcoin price has managed to pull itself away from the narrative of being correlated to the United States stock market and macroeconomic conditions. The biggest cryptocurrency in the world has been rallying for more than a week now despite the ongoing banking crisis in the country, which is close to bringing down another bank.
MANA eyes 21% gains thanks to the world’s largest event for the art and science of game making

Decentraland price is on a 10-day uptrend as it moves diagonally along an ascending trendline. MANA could ascend 21.68% from the current price to tag the $0.7330 resistance level last tested on February 21. The bullish thesis could be invalidated if the gaming token drops below the uptrend line at $0.6015.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder

US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.