Stocks of many Chinese blockchain technology-related A-share firms rose to the daily limit of 10 percent immediately after stock markets opened on Monday, amid expectations that more capital would be funneled into the sector following official endorsement.
Feitian Technologies Co, a Beijing-based supplier of smart-card-based security solutions and products, saw its stocks rise 10 percent to 14.85 yuan ($2.10). Previously, the company said it had released equipment for the safe storage of blockchain-based digital currency.
Shunya International Martech Beijing Co, a Beijing-based integrated communications firm, also saw its price rise 10 percent to 18.92 yuan.
In September, Shunya announced that one of its joint stock companies specialized in the application of blockchain technology in the real economy, including supply chain finance, smart ports and blockchain-based food traceability management.
Bitcoin's price had reached $9,728.93 as of press time, up roughly 22 percent from Friday, data from Coindesk showed.
Chinese President Xi Jinping urged increased efforts to speed up development in this sector, underscoring the important role of blockchain technology in the new round of technological innovation and industrial transformation.
Following the news, Shenzhen Xunlei Networking Technologies Co soared 107.76 percent to $4.82, its highest daily rise since its listing on Nasdaq in 2014.
In October 2017, Xunlei announced it was transitioning from an online services provider into a blockchain company, and released a blockchain-based product named OneThing Cloud.
Other companies, including Beijing Certificate Authority Co, IT solutions provider Yusys Technologies Co and cryptography technology-based information security equipment provider Westone Information Industry Inc, soared to the daily limit on Monday.
The Chinese president's endorsement of the technology is expected to enhance market appeal for blockchain shares and boost investment, said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co.
"But the application of the technology still has a long way to ago. We need to follow whether or not these public companies really implement the national policy and invest in research and applications," Yang told the Global Times.
On October 24, Zhongguancun Science Park announced financial support for the research and development of 2,920 small technology companies, including dozens of blockchain-related firms such as innovative blockchain platform Beijing-based ASCH, one-stop blockchain technology service firm Chinaup and Oracle Chain. Details about the subsidies have not yet been made available.