Shares rebound as digital tech sector soars

Surging prices of Bitcoin and news of a coming Internet conference in China also fuel increase

Shanghai shares rebounded today as the digital technology sector was buoyed by the surging prices of bitcoin and on news about a coming Internet conference.

The Shanghai Composite Index rose 0.9 percent to 3,237.36 points, lifted by software producers and digital devices makers which gained 3.87 percent and 3.6 percent respectively.

Their rise came on the heels of a price surge of Bitcoin to over US$4,000 from below US$3,700 on Friday in the United States, while in the domestic market its price has soared over 40 percent to nearly 28,000 yuan (US$4,198) since the beginning of August. The price increase was caused by the US ’ decision to tighten supervision on the trading of the cryptocurrency.

“Investors rushed to buy more of digital coins before trading will be limited, which lifted prices and benefited relevant high-tech companies,” Mingsheng Securities said.

Investors were also cheered by the Ministry of Industry and Information Technology's announcement on its website that China would hold the Fourth World Internet Conference between November and December, GF Securities.

Yonyou Network Technology Co, an Internet technology company, jumped by the daily limit of 10 percent to 19.1 yuan, while EmbedWay Technologies (Shanghai) Corp, a digital devices seller, rose 5 percent to close at 29.66 yuan.

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