Chinese blockchain stocks lose less in crypto market bloodbath

China’s blockchain-linked equity stocks have been doing notably better than the rest of the global crypto equity market during a flash crash on Wednesday.

According to a Bloomberg-curated basket of eight Chinese A-share equities tied to the blockchain industry, China’s blockchain equity stocks were down less than 2% as of 6 a.m. UTC on Thursday, Bloomberg reports. The equity basket comprises shares of IT services company Shenzhen Forms Syntron, business management firm Ygsoft, and data exchange-focused company Brilliance Technology.

Ygsoft — a Chinese company specializing in blockchain-based tools for supply chain and product traceability — is down around 1.6% over the past 24 hours at the time of writing, according to data from TradingView. Brilliance Technology, which develops payment and transaction tools implementing big data and blockchain, slipped over 2% at publishing time.

The losses of China’s blockchain-linked stocks are significantly smaller than those of the industry equity market in the rest of the world, compared to more than 5% average plunge for a Bloomberg’s basket of 24 global blockchain and crypto shares outside the country.

Nasdaq-listed crypto exchange Coinbase closed Wednesday trading with nearly 6% losses, slipping to $224. Michael Saylor’s business intelligence firm MicroStrategy, which holds a substantial amount of Bitcoin (BTC), sank nearly 7%.

The contrast between blockchain-related equity markets in China and the rest of the world can be attributed to China’s prior crackdowns on crypto. The country banned cryptocurrency trading and token issuance back in 2017, significantly narrowing the nature of its publicly traded blockchain-tied companies. This made China less affected by movements inthe crypto market, according to Vijay Ayyar, head of Asia Pacific at Singapore-based crypto exchange Luno.