Crypto Platforms Give Foreign Traders Access to China's AI Stock Rush

Crypto exchanges are giving foreign traders access to China's AI stock rush through a unique route. Instead of buying mainland shares, offshore investors are using perpetual futures tied to Chinese chip companies.

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

A distinct market for these names has been established that is difficult for foreign capital to access through regular exchanges.

TradeXYZ and Gate.com have listed perpetual contracts linked to CXMT, a Chinese memory-chip maker set to start trading in Shanghai this Monday. The chipmaker wants to collect nearly $10 billion in its IPO, which would make the deal mainland China's largest since 2010.

Crypto platforms are giving offshore traders a way around China's stock access rules. Beijing maintains a controlled framework to prevent foreign investment in Shanghai and Shenzhen stocks, with restrictions on both methods.