The week of May 12 to May 18, 2019, saw mixed performance across blockchain-linked equities globally, with Chinese A-shares and Hong Kong stocks broadly declining alongside major indices. U.S. markets showed more balance, though blockchain-related stocks remained volatile. Amid these movements, a growing body of analysis suggests a moderate correlation between traditional financial markets—particularly China’s stock indices—and the price of Bitcoin.
This correlation, while not deterministic, offers investors insight into potential cross-market trends and timing signals. As blockchain continues to evolve from speculative buzz to real-world integration, understanding these market dynamics becomes increasingly valuable.
👉 Discover how market trends and digital assets are shaping the future of investing.
Market Overview: A Global Snapshot
Global financial markets experienced turbulence during the week, with Chinese equities leading the downturn. The A-share blockchain index declined by 1.87%, mirroring broader losses in the Shanghai Composite (-0.8%), Shenzhen Component (-1.23%), and ChiNext (-2.32%). In contrast, Hong Kong’s Hang Seng Index dropped 1.81%, while U.S. indices posted gains—Dow Jones (+0.76%), Nasdaq (+1.24%), and S&P 500 (+0.68%).
Despite overall weakness, standout performers emerged. New Morning Technology (300542.SZ) surged over 30% midweek after three consecutive daily limits, only to stabilize as Bitcoin pulled back from $8,200 to $7,300. This pattern echoes a recurring theme: short-term price action in blockchain stocks often aligns with crypto market sentiment.
A-Share and ChiNext Blockchain Stocks: Mixed Signals
As of May 13, the blockchain sector index opened at 2,776.87 points and closed the week at 2,724.94, reflecting a 1.87% drop. Among 100 tracked blockchain-linked companies:
- 25 recorded gains
- 84 declined
- 1 remained flat
Top performer: Moso Power (002660.SZ), up 12.36%
Biggest loser: ST Oupu (002711.SZ), down 24.83%
While some stocks rallied on news or speculation, analysts caution against attributing moves solely to blockchain exposure.
Notable Company Updates
Zixin Pharmaceutical Faces Scrutiny Over Profitability and Hype-Driven Strategy
Zixin Pharmaceutical (002118.SZ) came under fire for a sharp decline in net profit despite stable revenue in its 2018 annual report. Critics note the company has repeatedly capitalized on trending sectors—gene testing in 2013, ginseng, industrial hemp, and most recently, blockchain—without delivering sustained value.
Yijian Shares Mentions Blockchain 53 Times—But Says It Has No Real Impact
Yijian Shares (600093.SH) referenced “blockchain” 53 times in its latest annual report. The stock previously surged over 50% in five days following news that it was included in China’s first batch of blockchain project filings. However, the company clarified to regulators that blockchain initiatives have not significantly impacted financial performance, urging investors to remain cautious.
New Morning Technology Sees 34.94% Gain Amid Volatility
New Morning Technology’s stock jumped nearly 35% from May 7 to May 13, including multiple daily trading limits. The company issued a statement confirming no undisclosed material events or internal changes, attributing the surge to normal market activity.
Maida Digital Confirms Blockchain Involvement via Subsidiary
Maida Digital (002137.SZ) revealed that its invested firm, Fushu Tech, is involved in the open-source "DataChain" project, which incorporates data encryption and blockchain technology.
Huayang Lianzhong to Boost Blockchain R&D
Advertising technology firm Huayang Lianzhong (603825.SH) announced plans to strengthen its technical team's expertise in artificial intelligence and blockchain tools during its 2018 shareholder meeting.
👉 Explore how emerging technologies are transforming financial markets today.
Hong Kong Market: Gainers and Losers
Hong Kong-listed blockchain-related firms showed divergence:
Gainers:
- Bluehole Interactive (08267.HK): +14%
- Meitu Company (01357.HK): +6.25%
- Panda Green Energy (00686.HK): +4.76%
- Tongcheng Holdings (01611.HK): +3.59%
- Parle Industries (01263.HK): +2.59%
- Xiongan Tech (01647.HK): +1.81%
- Kingsoft Software (03888.HK): +1.34%
Losers:
- Sinolink Holdings (08207.HK): -34%
-慧聪集团 (02280.HK): -7.4% - Guowei Technology (02239.HK): -6.54%
- Yuxing Tech (08005.HK): -6%
- ZhongAn Online (06060.HK): -5.1%
- Huanan City (01668.HK): -0.89%
Xiongan Tech also granted 35.5 million stock options on May 16 at HK$1.17 per share, equal to the closing price on that date, valid for four years.
U.S. Markets: Blockchain Stocks Split
U.S.-listed blockchain equities showed balanced momentum despite broader gains in major indices.
Top Gainers:
- Accenture (ACN): +4%
- Square (SQ): +2.2%
- Kodak (KODK): +0.83%
Top Decliners:
- Overstock.com (OSTK): -21.23%
- Riot Blockchain (RIOT): -8.5%
- Marathon Patent (MARA): -5.14%
Chinese ADRs fared worse:
- Secoo (SECO): -24.4%
- Xunlei (XNET): -14.37%
- CNET (CNET): -8.45%
Overstock CEO Sells Shares to Fund Blockchain Ventures
Overstock CEO Patrick Byrne sold 900,000 shares amid falling prices, sparking investor concern. He explained the sale was necessary to fund personal investments in blockchain projects and charitable commitments, citing his modest $100,000 annual salary.
Nvidia Reports Q1 Revenue Drop but Beats Expectations
Nvidia (NVDA) reported a 31% year-on-year revenue decline to $2.22 billion, marking the second consecutive quarterly drop due to reduced demand from cryptocurrency miners. However, earnings per share of $0.88 exceeded forecasts, leading to a post-earnings spike of over 6%.
Xunlei Advances Blockchain for Copyright Protection
Xunlei (XNET) released its Q1 unaudited results with $41.3 million in revenue and announced key upgrades to its ThunderChain platform, including dual EVM/WASM virtual machine support. It also partnered with China’s Copyright Protection Center and won a blockchain contract with Guangdong Southern New Media.
Market Correlation Analysis
LongHash analyzed CoinMarketCap Bitcoin price data against the Shanghai Composite Index in 2019 and found a Pearson correlation coefficient of 0.66, indicating a moderate positive relationship.
Key insights:
- Correlation above 0.8 = strong; below 0.3 = weak
- The Shanghai Index tends to lead Bitcoin by about one week
- Correlation weakens significantly beyond a three-week window
This suggests that sharp moves in Chinese equities may foreshadow similar trends in crypto markets within a week—useful for timing strategies.
Expert Commentary
Jack Dorsey’s Square: A Catalyst for Crypto Adoption
LongHash highlights Square’s growing role in mainstream crypto adoption:
- Generated $65.5M in Bitcoin sales in Q1 with $832K profit
- Provides accessible Bitcoin trading via Cash App
- CEO Jack Dorsey is a vocal Bitcoin advocate
Square’s infrastructure could help drive long-term adoption and price appreciation.
Analyst Cautions on Blockchain Stock Rallies
Guosheng Securities analyst Song Jiaji noted that recent rallies in Chinese blockchain stocks may not be driven by sector-specific catalysts but rather company-level improvements or broader market rebounds.
“There hasn’t been any major policy shift domestically,” he said. “If the rally were truly blockchain-driven, we’d see wider and stronger gains.”
Frequently Asked Questions
Q: Are blockchain stocks directly tied to Bitcoin prices?
A: Not directly, but they often show moderate correlation due to shared investor sentiment and macroeconomic factors.
Q: Why did New Morning Technology’s stock surge?
A: Likely due to speculative trading linked to blockchain hype; no fundamental changes were reported.
Q: Is there evidence of market manipulation in blockchain stocks?
A: While no proof exists for specific cases here, high volatility and sensitivity to rumors suggest speculative behavior.
Q: How reliable is the Shanghai Index as a Bitcoin predictor?
A: Within a one-week lag window, it shows moderate predictive power based on historical correlation patterns.
Q: Should investors treat all “blockchain” mentions as meaningful?
A: No—many companies use the term for marketing without substantive implementation.
Q: What does moderate correlation mean for portfolio strategy?
A: It implies diversification benefits still exist between traditional equities and crypto assets.
👉 Stay ahead with real-time insights into digital asset trends and market movements.
Conclusion
The week highlighted both opportunities and risks in blockchain-linked equities. While short-term rallies can be dramatic—often fueled by hype—long-term value depends on actual technological integration and financial performance.
Investors should focus on fundamentals while monitoring cross-market signals like the moderate correlation between the Shanghai Index and Bitcoin. As blockchain matures, those who distinguish signal from noise will be best positioned for sustainable returns.
Core Keywords: blockchain stocks, Bitcoin price correlation, cryptocurrency market trends, blockchain investment, stock market analysis, digital asset integration, crypto volatility