From blockchainasia by Coco Kee

Hong Kong

The view of Hong Kong in front of me was stunning. I had almost forgotten its beauty. My arrival timing was significant: both Hong Kong and Mainland China's stock markets had hit historic lows. The Shanghai Stock Exchange (SSE) Composite Index hovered around 2800, while the Hang Seng Index struggled to find its footing.

"Is the bottom in?" This question partly drove my visit. Even before I left Hong Kong, both markets rocketed upward after China's central government announced measures to boost the economy - or more precisely, to stimulate the stock market. My Hong Kong contacts shared a common sentiment - while no one could predict if the bull run would last, they felt things couldn't get worse.

During my stay, I met with Chinese entrepreneurs and investors from Shenzhen, Thailand, and Singapore, alongside Hong Kong locals. The diversity and ambition of ongoing projects were encouraging. The ease of coordinating these meetings highlighted Hong Kong's unique position as a natural nexus for the region's Web3 ecosystem, a vision the Hong Kong government embraces.

The city's geographical advantages are clear: high-speed trains connect it to Mainland's tech hubs like Shenzhen and Hangzhou, and most Southeast Asian destinations are just hours away by air.

However, some hurdles persist. A recurring concern was Hong Kong banks' reluctance to serve the crypto industry - unfortunately mirroring the situation in the U.S. and elsewhere in the world.

I also discovered that Hong Kong's legislators had been closely watching the U.S. regulatory direction. Once a follower of the U.S., they felt discouraged and adrift in recent years, given America's hostile stance and extensive legal enforcement against the crypto industry.

Mainland

After Hong Kong, I took the northbound speed train to mainland China.

For the first time in many years, I witnessed a transformed nation. People I interacted with were no longer the confident ambitious ones; instead, they were frustrated and lost.

Taxi drivers spoke candidly about their struggles. Upon learning I was from the U.S., some confided their desires to move there. "It's getting harder to make a living here," they admitted. During my visit, China conducted one-day military drills around Taiwan, adding to the complex geopolitical tensions.

Yet, amid these challenges and ongoing tensions with Taiwan, bright spots emerged. The SSE Composite Index's overnight recovery helped lift spirits. China's infrastructure development continues impressively - more extensive speed train and subway networks than five years ago, streets filled with electric vehicles and ubiquitous charging stations. In infrastructure, China can undeniably claim victory over the U.S.

10th Wanxiang Blockchain Summit

Kevin M. Goldstein on a fireside chat about U.S. regulations and election

A highlight of my trip was attending the 10th Wanxiang Blockchain Summit in Shanghai. KGA’s co-founder Kevin Goldstein was invited to speak at the summit.

Compared to the electric energy of the 5th summit in 2019, this year's event was notably subdued, with attendance at roughly one-third of 2019 levels. The speaker list, once global, now featured almost exclusively Asian voices.

To give you some context. Since 2019, China's central government has cracked down on Bitcoin mining and banned citizens from crypto trading with local and foreign exchanges. Interestingly, state-owned entities have since taken over some mining operations, explaining why roughly 20% of hash power still originates from China.

The summit's discussions centered on blockchain technologies and applications like stablecoins and RWA tokenization, carefully sidestepping cryptocurrencies.

The Chinese audience, which included both companies and government officials and regulators, showed keen interest in U.S. regulatory developments and the presidential election ( I was there before the election).