Crypto Traders Bypass China's Stock Access Rules Through Perpetual Futures

Crypto traders are bypassing China's strict stock access rules by using perpetual futures tied to Chinese chip companies. These contracts allow users to wager on share values without actually holding the shares, and they're traded continuously on cryptocurrency exchanges.

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

CXMT's pre-IPO perp has seen significant volume, with CoinGlass recording about $19 million in trading over 24 hours. The chipmaker aims to raise nearly $10 billion in its initial public offering (IPO), making it mainland China's largest IPO since 2010.