On February 7, the A-share market saw some volatility, with major indices failing to sustain the strong gains of the previous two sessions. However, the blockchain sector bucked the trend, surging 3% overall. Within the sector, 20 stocks—including Jinke Culture, Nanwei Software, Sanwu Internet, and Eryou-San—hit their daily limit-up ("涨停"). Others like Yijian Shares, Oriental Guoxin, Fuguang Shares, China Great Wall, and Beijing Junzheng rose more than 7%.
Notably, several stocks tied to multiple trending concepts have posted consecutive limit-ups. For instance, Sanwu Internet (300051.SZ) has hit its limit for seven straight trading days, including today. Jinke Culture (300459.SZ) and Eryou-San (002467.SZ) have each seen four consecutive limit-ups.
From a capital flow perspective, this broad rally appears largely driven by short-term speculative funds.
Take Sanwu Internet's "Dragon & Tiger List" (a disclosure of top traders) for today. Guotai Junan Securities' Shenzhen Branch led buyers with purchases worth RMB 12.385 million. Huatai Securities' Nantong Rudong Renmin Road Branch and Huatai Securities' Shanghai Yangpu Guobin Road Branch followed, buying RMB 11.5339 million and RMB 11.5391 million, respectively.
On the sell side, Guotai Junan Securities' Shenzhen Shen’nan Avenue KK100 Branch topped the list, selling RMB 9.7361 million. China Zhongjin Wealth Securities' Guangzhou Panyu Qiaonan Road Branch and Nanjing Securities' Shanghai Nanzhuche Road Branch ranked second and third, selling RMB 4.2009 million and RMB 3.717 million, respectively.
Well-known trading seats from brokerages like Tibet East Money Securities' Lhasa Tuanjie Road No. 1 Branch, China Galaxy Securities' Shaoxing Branch, and Shenwan Hongyuan Securities' Shanghai Minhang Dongchuan Road Branch also appeared on the Dragon & Tiger Lists for stocks such as Eryou-San, Annie Shares, Guanghuan New Net, Fangzhi Technology, and Beixin Source.
On the news front, foreign media reported that Federal Reserve Governor Lael Brainard stated on Wednesday (local time) that the U.S. central bank is studying the feasibility of issuing a central bank digital currency (CBDC).
But another piece of news may have given the blockchain sector an even bigger boost.
On the evening of February 6, Sun Yuchen tweeted that he had dined with Warren Buffett on January 23 and gifted him a Bitcoin. Also present were Litecoin founder Charlie Lee, eToro CEO Yoni Assia, Binance Charity Foundation Head Helen Hai, and Huobi CFO Chris Lee.
According to Bloomberg, Buffett remarked that blockchain holds intrinsic value, citing its widespread adoption in payments and substantial demand. He believes the technology will be disruptive to the future of payments.
Bidding for the "Buffett Lunch" was arguably Sun Yuchen's most prominent publicity stunt in 2019.
On June 4 last year, Sun announced he had won the 20th annual Warren Buffett Charity Luncheon with a record bid of USD 4.567888 million.
However, in the early hours of July 23, Sun suddenly posted on his personal Weibo account that due to an acute kidney stone requiring hospital treatment, he had to cancel the luncheon.
On July 25, Sun published a public apology on his official Weibo, stating that while his bid was motivated by admiration for Buffett and a passion for charity, his immature conduct, youthful impulsiveness, and unfiltered speech escalated into a marketing campaign that spiraled out of control and ultimately failed.
Finally, on January 23, 2020, the long-awaited luncheon took place.
Sun Yuchen has certainly earned his reputation as a "marketing master," effortlessly generating buzz—and incidentally providing a tailwind for A-share blockchain stocks.
While various factors fueled today's rally, many of these companies have minimal actual ties to blockchain technology.
For example, Jinke Culture's core business is in mobile internet culture, offering services like app development, publishing, internet advertising, and indoor theme park construction.
On August 8, 2019, the company stated on its interactive platform that an investee company developed "MeowChain," a fully decentralized gaming distribution ecosystem built on Ethereum, IPFS, and cross-chain technologies.
However, the project is still in early design and development, has not officially launched, and has generated no revenue for the company.
Sanwu Internet's main business involves enterprise email services, website construction, domain registration, mobile e-commerce, and gaming software.
It is classified under blockchain primarily because it signed a memorandum with Zhongjin Online to jointly develop a Bitcoin project—and Bitcoin is inherently based on blockchain.
Chuangye Haima is a comprehensive startup service provider. On October 29, 2019, the company responded on its interactive platform that, as a strategic investor, it invested RMB 10 million in Guangzhou Boao Zongheng Network Technology Co., Ltd., acquiring a 0.22% stake. Its portfolio company Huojing Network's digital copyright service "IP Chain" has obtained relevant qualifications and is recognized as a leader in applying blockchain to intellectual property services.
Clearly, many so-called "blockchain-themed stocks" have little genuine connection to the technology and currently contribute no meaningful applications or revenue to their parent companies.
Given the current conditions, today's sector-wide limit-ups appear largely driven by opportunistic, short-term speculation. Investors should remain cautious of potential corrections ahead.