(Yicai Global) April 25 -- China’s top securities regulator is happy for Canaan Creative Co., the country’s largest bitcoin mining hardware maker, to list on the mainland despite national bans on cryptocurrency trading.
Jiang Yang, vice chairman of the China Securities Regulatory Commission, visited the Beijing-based firm and welcomes it to list onshore, tech news outlet Ifeng reported. China’s chip industry has been the center of attention as trade frictions with the United States continues to heat up, chiefly due to the seven-year ban on ZTE Corp. which prevents it from buying from America.
“Whatever its products are used for, it’s essentially a chip firm and we welcome it to list on domestic markets,” Jiang said of the world’s second-biggest manufacturer of bitcoin mining machines. The regulator’s thumbs up could steer Canaan back to the mainland. It originally sought to list on China’s Nasdaq-style National Equities Exchange and Quotations, or New Third Board, last year, but tightened regulations on cryptocurrencies pushed it toward the Hong Kong bourse.
Canaan pocketed CNY300 million (USD47.5 million) in profit last year after bitcoin prices soared to around USD20,000. Its listing plans come at a time when the mainland is looking to convince major tech firms, including smartphone maker Xiaomi Inc. and Beijing Sankuai Online Technology Co., the firm behind China’s largest on-demand services provider Meituan Dianping, to float on one of the mainland exchanges.
China banned cryptocurrency trading in September and forced exchanges to move overseas. The new joint banking and insurance regulator, the China Banking and Insurance Regulatory Commission, commended the salvo’s progress on April 23, saying leading virtual currency exchanges had all exited the domestic market.
Editor: James Boynton