China After Bitcoin Ban

There were a lot of news and rumors in cryptocurrency market during the last month. Many people have simply forgotten about China as a factor. We decided to describe the current state of the market.

The People's Bank of China poured 810 billion Renminbi ($ 122.4 billion) into the economy of the country last week to reduce the lack of liquidity in the financial system and to calm the bond market.

According to Reuters, the recent warning from the People's Bank of China about the need to reduce the country's debt burden caused great concern in the debt market. Every fourth Chinese company operates on the pyramid principle. By limiting the activities of such companies on the exchange, the PBC plans to slow the bubble increase.
An additional capital was formed because of an agreement between commercial banks of China and the People's Bank on the repurchase.

After the intervention of the PBC, the yield on China's 10-year government bonds began to decline. On November 17, it was approximately 3.96%. Cointelegraph believes that this measure has allowed not only to stabilize the domestic economy of the PRC, but also send some of the capital to the crypto market. Thereby contributing to the growth of Bitcoin's rate, ignoring the recent ban on crypto instruments.
In addition, the positions of the Chinese players of crypto market have not changed, even considering the September's prohibitions of the legal authorities regarding the operation of crypto-instruments.

Chinese exchangers (namely OKcoin and Huobi) found a legitimate way to circumvent the ban using P2P platforms. These platforms, with the help of the subsidiaries Huobi Pro and Okex, now operate beyond the reach of China's jurisdiction, thus continuing to serve customers without fear of the Chinese authorities.

It is worth mentioning that the "big three" Chinese Bitcoin exchanges OKCoin (and its subdivision OKEx), BTCC and Huobi accounted for over 90% of Bitcoin's global trading volume. Now, they only account for roughly 7% of market volume, according to Coinmarketcap.com. None of the exchanges still trades a BTC/CNY pair, and accounts can no longer be funded or defunded with Chinese Yuan.