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Chinese metaverse stocks rise on news firm Xinhua’s NFT drop

By Aaron Woolner

02:07, 24 December 2021

Xinhua News Agency website page with close up logo.
Xinhua News Agency website page with close up logo - Photo: Shutterstock

Two Chinese metaverse stocks rose on news that state news organisation Xinhua was releasing non-fungible tokens (NFTs) based on its photography. 

State-mouthpiece Xinhua announced that it would release a limited amount of NFTs from its news app on Friday, news that prompted the stocks of two Chinese firms involved in the metaverse to rise. 

Shenzhen listed Goertek, which specialises in augmented reality technology, rose 6% while online gaming company Perfect World went up 4%, according to Reuters. 

China’s crypto crackdown

According to Bloomberg, while Chinese authorities haven’t made NFTs illegal, it’s a grey area that could potentially attract attention.

The move by Xinhua is a surprise given the crackdown on crypto-related activity in China over the previous 12 months.

In September, the People’s Bank of China announced a ban on crypto trading and also prohibited overseas firms from offering digital asset trading services to Chinese citizens.


20,336.40 Price
+0.570% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 7.0


58,796.50 Price
+2.110% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


0.54 Price
+13.900% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


2,411.42 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0191%
Short position overnight fee 0.0109%
Overnight fee time 21:00 (UTC)
Spread 0.60

Global crypto mining rebounds

The news sent crypto prices tumbling globally and also drove down the stock price of Chinese digital exchange Huobi, which announced it was ceasing offering services to Chinese citizens. 

Despite an earlier ban on crypto mining in China the global hash rate, a measure of the computer power used to extract BTC, has rebounded.

Xinhua’s move is not the only time a state-backed Chinese firm has embraced blockchain technology.

​​In January, the Shanghai government invested in blockchain firm Conflux while in September, Shanghai ShuTu Blockchain Research Institute (a joint venture between Conflux and Shanghai Maritime University) said that it would be testing an offshore yuan stablecoin.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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