Crypto exchanges are giving foreign traders access to Chinese AI stocks

Crypto traders are getting access to China’s AI stock rush through a route Beijing did not build for them. Instead of buying mainland shares, offshore investors are using perpetual futures tied to Chinese chip companies.

The contracts let users to wager on share values without actually holding the shares, and they are traded continuously on cryptocurrency exchanges.

Due to this arrangement, a distinct market for names has been established that is difficult for foreign capital to access through regular exchanges.

The biggest target is CXMT, a Chinese memory-chip maker due to start trading in Shanghai on Monday. TradeXYZ and Gate.com have listed perpetual contracts linked to the company before its public debut.

CoinGlass recorded about $19 million in CXMT perp volume over 24 hours. The chipmaker wants to collect nearly $10 billion, which would make the deal mainland China’s largest IPO since 2010.

Crypto platforms give offshore traders a way around China’s stock access rules

Beijing maintains a controlled framework to prevent foreign investment in Shanghai and Shenzhen stocks. Typically, foreign investors participate through the Qualified Foreign Institutional Investor framework or Hong Kong’s Stock Connect program.

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