KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Tether’s USDT stablecoin, the world’s most-used cryptocurrency, has seen periodic discounts relative to the dollar since late September, signaling a potential shift by Chinese investors from digital assets back to the surging Chinese stock market.
Despite China's 2021 ban on crypto trading, many mainland residents have continued using overseas exchanges to trade cryptocurrencies. However, recent easing measures by China’s central bank, aimed at boosting the economy, have spurred a rally in Chinese stocks, coinciding with the USDT discount.
Stablecoins like USDT, which are typically pegged 1-to-1 to fiat currencies such as the dollar, are used to conduct transactions and hedge against the volatility of tokens like Bitcoin. The discount suggests rising demand for dollars as traders exit USDT positions to buy Chinese stocks.
According to Kaiko, a blockchain data firm, the absence of USDT/Chinese yuan trading pairs due to the ban makes dollar-based transactions a key barometer of market activity. On Binance’s peer-to-peer marketplace, USDT is trading at a discount to the offshore yuan, further reflecting investor shifts.
Both retail and institutional investors are contributing to this trend, with brokerage firms remaining open during China’s Golden Week holidays to onboard new customers. The Shanghai Composite Index surged 21% in late September, attracting investors who are reallocating capital from digital assets into Chinese equities.
This pivot is underscored by institutional allocations to Chinese stocks and a growing perception that Chinese markets may be outperforming highly speculative assets like Bitcoin.
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