Chinese Banks Seek Crypto Partnerships Amid 4.5% Q1 GDP Growth After CoinEdition
- China’s first-quarter GDP grew 4.5%, the fastest in a year, driven by consumption and retail sales.
- The uptick in consumption has been attributed to easing of COVID-19 measures and increased sales in March.
- Chinese banks are seeking to partner with regulated crypto firms in Hong Kong, according to the Wall Street Journal.
According to government data released on Tuesday, China’s gross domestic product (GDP) rose 4.5% in the first quarter of the year, driven by a rise in consumption and retail sales, after the government abruptly ended its strict “zero COVID” policy.
Also, growth in the world’s second largest economy from January to March, compared to the same period in 2022, was the fastest in the past year, surpassing growth of 2.9% in the previous quarter.
Experts attribute the increase in GDP to a resurgence in spending, as individuals returned to malls and restaurants after easing strict COVID-19 measures.
In March, the total retail turnover of consumer goods rose by 10.6% compared to the previous year, and showed a growth of 7.1 percentage points from the first two months of the year. In March, industrial production, which measures the manufacturing, mining and utilities sectors, rose by 3.9% compared to the corresponding period the previous year.
In addition, investment in fixed assets, which involves China’s investments in infrastructure and other initiatives to stimulate growth, grew by 5.1% in the first three months of 2023, compared to the same period a year earlier.
Meanwhile, Hong Kong’s ambition to become a crypto hub has provided opportunities for state-linked banks in China to partner with regulated crypto firms in the city. Despite a ban on crypto activities in mainland China, these banks have expressed interest in working with crypto firms in Hong Kong.
The Wall Street Journal reported that the Hong Kong arm of Bank of Communications is currently in talks to offer account services to registered crypto businesses in the city. These developments suggest that Chinese banks are exploring the crypto space through activities outside mainland China.
The post Chinese banks seek crypto partnerships amid 4.5% Q1 GDP growth appeared first on Coin Edition.
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