In 2021, China implemented a sweeping cryptocurrency trading ban, significantly disrupting the cryptocurrency market. However, the impact of this regulatory action on domestic fintech companies has largely been overlooked. This paper investigates two key research questions: first, whether the 2021 Chinese cryptocurrency trading ban had spillover effects on the domestic fintech sector, and second, whether crypto-related social media sentiment influenced fintech companies differently before and after the ban. To address these questions, we employ a GARCH(1,1) model to analyze market volatility and trends. Additionally, we train a fine-tuned BERT model to enhance the accuracy of social media sentiment analysis. Our findings reveal that the cryptocurrency ban not only directly impacted the crypto market but also led to significant negative spillover effects on fintech firms. Following the ban, social media sentimentespecially concerning Bitcoinbecame a dominant factor, with fintech companies serving as a proxy for exposure to the digital finance sector. Positive sentiment surrounding cryptocurrencies served as a critical signal for speculative interest in fintech stocks post-ban.
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