2025-11-24 09:05

China's bitcoin mining market share rebounds to 3rd globally, Hashrate Index shows Beijing’s softening stance, cheap electricity attract crypto miners Bitcoin seen as strategic asset amid Sino-US rivalry, analyst says Nov 24 (Reuters) - Bitcoin mining is quietly staging a comeback in China despite being banned four years ago, as individual and corporate miners exploit cheap electricity and a data center boom in some energy-rich provinces, according to miners and industry data. China had been the world's biggest crypto mining country until Beijing banned all cryptocurrency trading and mining in 2021, citing threats to the country's financial stability and energy conservation. Sign up here. After having seen its global bitcoin mining market share slump to zero as a result of the ban, China crept back to third place with a 14% share at the end of October, according to Hashrate Index, which tracks bitcoin mining activities. The resurgence in bitcoin mining, which has also been corroborated by rig maker Canaan Inc’s (CAN.O) , opens new tab fast-rebounding sales in China, could act as a demand and price support for the world’s largest cryptocurrency. Wang, a private miner in Xinjiang, said he started mining late last year in the energy-abundant province. "A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining," Wang said, asking to be identified by just his last name. "New mining projects are under construction. What I can say is that people mine where electricity is cheap." China’s state planning body, the National Development and Reform Commission, which issued the ban in 2021, and the Xinjiang government did not reply to faxed Reuters requests for comment. MINING RESURGENCE Beijing's crackdown on the sector in 2021 led to miners shutting down local operations and  fleeing to overseas markets such as North America and Central Asia. The rebound in bitcoin mining coincides with the digital asset hitting record highs in October on the back of U.S. President Donald Trump’s pro-crypto policies, and growing distrust toward the dollar, making crypto mining more rewarding. The cryptocurrency, however, is down roughly a third from its October peak as global risk appetite wanes. “Chinese policy flexibility emerges when economic incentives are strong in specific regions,” said Patrick Gruhn, CEO of Perpetuals.com, a provider of crypto market infrastructure. "The resurgence of mining activity in China is one of the most important signals the market has seen in years.” China has not officially relaxed bitcoin mining curbs, but "even hints of China's policy easing could act as a tailwind for bitcoin's narrative as a global, state-resilient asset," he said, pointing to industry data signaling renewed activity. Bitcoin mining - the energy-intensive process of using specialised computers to solve complex puzzles to win bitcoins - is especially active in  power-abundant hinterlands such as Xinjiang, according to miners and rig makers. Sichuan-based Duke Huang, who quit bitcoin mining a few years ago due to the Chinese regulatory ban, said some of his friends have come back to the business recently. "It's a sensitive area ... But people who get cheap electricity are still mining." Besides higher bitcoin prices, a glut of electricity and computing power following over-investment in data centers by some cash-strapped Chinese local governments fuelled the rebound, said a source at a bitcoin mining rig maker, who did not want to be identified due to the sensitivity involved. CRYPTO POLICY  The trend is also captured by sales data from mining rig makers.  Canaan, the world's second-biggest bitcoin mining machine maker, generated 30.3% of its global revenues in China last year, compared with 2.8% in 2022 in the aftermath of the crackdown, according to company filings. China's contribution to Canaan's sales jumped further to more than 50% during the second quarter this year, according to a source with direct knowledge, who declined to be named as he is not authorised to speak to the media. Canaan, which did not confirm the second-quarter sales breakdown, attributed its growing sales in China to this year’s U.S. tariff uncertainty that disrupted U.S. sales, rising bitcoin prices that make mining more profitable, and a subtle shift in China’s digital asset posture. In an emailed statement, the Singapore-based company said its activities remain fully compliant with Chinese regulations but refused to comment on mining policies in China. “In China, the R&D, manufacturing, and sale of mining machines are permitted,” Canaan said. The pickup in bitcoin mining in China comes amid signs that Beijing has softened its attitude toward digital coins. These were once seen as a challenge to China's fiat currencies and abetting capital flight. Hong Kong's stablecoin bill, for example, took effect in August, enabling the Chinese city to compete with the U.S. in fostering a regulated market for fiat-currency-backed cryptocurrencies. China was also considering allowing the use of yuan-backed stablecoins to boost the wider adoption of its currency globally and catch up with a U.S. push on stablecoins, Reuters reported in August, citing sources familiar with the matter. "Bitcoin mining is still officially banned in China. However, there continues to be significant capacity operating," said Julio Moreno, head of research at CryptoQuant, a blockchain data & analytics firm.  CryptoQuant estimated that 15%-20% of global bitcoin mining capacity currently operates in China. Liu Honglin, founder of Man Kun Law Firm, said it is hard to wipe out a profitable business. "I personally think government policies against mining will be gradually loosened, because you simply cannot stop such activities completely." https://www.reuters.com/world/asia-pacific/bitcoin-mining-china-rebounds-defying-2021-ban-2025-11-24/

2025-11-24 09:04

FRANKFURT, Nov 24 (Reuters) - Stablecoins could draw valuable retail deposits away from euro zone banks and any run on a coin could have widespread stability implications for the global financial system, the European Central Bank warned on Monday. Stablecoins, digital assets designed to maintain a stable value, have been growing in popularity and their market value now exceeds $280 billion, a relatively small figure but still notable because issuers have been among the largest buyers of U.S. Treasuries. Sign up here. They are intended as a store of value and to provide cross-border payments, but their real use is in buying crypto assets, the ECB argued in a Financial Stability Review article, adding that about 80% of all trades currently executed globally on centralised crypto trading platforms involve stablecoins. "Significant growth in stablecoins could cause retail deposit outflows, diminishing an important source of funding for banks and leaving them with more volatile funding overall," the ECB said. But the main risk is posed by a possible investor run since the two largest stablecoins rank among the largest holders of U.S. Treasury bills and have asset reserves that are comparable to the top 20 largest money market funds. "A run on these stablecoins could trigger a fire sale of their reserve assets, which could affect the functioning of U.S. Treasury markets," the ECB added. Such runs could also impact the euro zone if a European Union entity and a third-country entity jointly issue a fungible stablecoin, since EU regulations are tighter and investors are more likely to pick it for redemption. "This could leave EU issuers with insufficient reserve assets under the supervision of EU authorities to fulfil the combined redemption requests made by EU and non-EU token holders, amplifying run risks in the EU," the ECB added. https://www.reuters.com/business/finance/stablecoins-could-siphon-off-euro-zone-bank-deposits-ecb-warns-2025-11-24/

2025-11-24 07:43

UK budget to test market confidence Black Friday, Alibaba earnings to gauge consumer health A G20 summit without the U.S. Nov 24 (Reuters) - Global markets head into another packed week where political leaders, policymakers and consumers take centre stage against a backdrop of nervy markets - with tech stocks and the likes of bitcoin coming under fire. G20 leaders gather in South Africa, Britain's finance minister delivers a highly anticipated budget, while Alibaba's earnings will offer a snapshot of Chinese consumer demand and U.S. retailers brace for Black Friday. Sign up here. Here's all you need to know about the coming week in markets by Dhara Ranasinghe and Amanda Cooper in London, Gregor Stuart Hunter in Singapore, Lewis Krauskopf in New York and Colleen Goko-Petzer in South Africa. 1/ SHOPPING SEASON Focus on U.S. consumer spending will come into view this week with Black Friday heralding the important holiday shopping season. Black Friday, the day after Thanksgiving that ushers in holiday sales, arrives as data have shown consumer sentiment slumping and inflation staying firm. Still, a solid few years for the U.S. stock market could be making particularly higher-income consumers feel wealthier and ready to shop. Tuesday's delayed release of September retail sales will also offer insight into consumer spending, which makes up more than two-thirds of U.S. economic activity. 2/ REEVES' WAIT IS OVER Pre-budget leaks and speculation are par for the course for UK finance ministers. Yet the build-up to Rachel Reeves' November 26 budget has been on another level entirely. Reeves must raise tens of billions of pounds in taxes to stay on track for her self-imposed fiscal rules. Reports a week ago that she had no plans to raise income tax took markets by surprise. Just days earlier investors had taken an unexpected speech by the finance minister as a sign of tax hikes coming. No doubt, Britain's Labour government is walking a tightrope as it tries to reassure bond markets that it can be trusted to be fiscally prudent while appeasing voters that manifesto pledges to not hike taxes will not be broken. Recent selling in bonds, sterling and bank shares shows markets on edge. The budget wait is almost over but UK market volatility is likely not. 3/ CHINA TECH RALLY FACES ALIBABA TEST Alibaba's earnings on Nov. 25 may reveal whether founder Jack Ma can deliver on his vow to "Make Alibaba Great Again" as he returns to favour in Beijing following a lengthy fall from grace. The stock, the largest component of Hong Kong's Hang Seng Tech index (.HSTECH) , opens new tab, has almost doubled this year as investors vie for a slice of the red-hot Chinese AI sector. But shares fell this month as the company faced allegations that it provides tech support for Chinese military operations against targets in the U.S., the FT reported. Alibaba has denied the accusations. Alibaba has since announced an aggressive push into consumer AI, but that market is increasingly crowded. Citi reckons it won't be easy for Alibaba's chatbot Qwen to easily replace the likes of ChatGPT. 4/ G20 MINUS ONE South Africa hosted the final G20 leaders' summit of its presidency before handing the baton to the U.S., as global economic growth slows, debt pressures mount, and poorer economies face severe climate-related impacts. The meeting proceeded without U.S. representation, as President Donald Trump had announced the world's largest economy would not take part. Pretoria intends to conclude its term by advancing priorities such as debt relief for struggling nations, fairer global trade regulations and improved climate financing for vulnerable countries. But the absence of the group's largest economy raises questions about the bloc's ability to resolve critical global challenges. 5/ TRACKING BITCOIN'S 'DEATH CROSS' Bitcoin , the apparent runaway market success story of the past two years, is in a funk. It has lost roughly a third in value since early October's record $126,223, as investors grow increasingly nervous of anything that has risen that much that quickly, like AI-related stocks. Even gold has been reined in by that same concern to some extent. The crypto market as a whole has lost over $1 trillion in value since bitcoin's all-time high, as capital has flooded out of anything from meme coins to exchange-traded funds. With little in the way of new fundamental catalysts, traders often latch on to technical charts to determine where a price should go next. Bitcoin is firmly below $90,000, and a so-called "death cross" has materialised on the charts this week - where the 50-day moving average crosses below the 200-day - often a harbinger of more losses ahead. https://www.reuters.com/business/take-five/global-markets-themes-graphic-2025-11-21/

2025-11-24 07:34

DAR ES SALAAM, Nov 24 (Reuters) - Tanzania will start construction of a new port in the east of the country in December, a senior government official said, ending a decade of delays due to government objections to the initial contract terms agreed with foreign developers. Bagamoyo port, a part of the large-scale special economic zone initiative involving industrial parks and rail and road links, is located about 75 km (47 miles) north of the commercial capital, Dar es Salaam. Sign up here. Gerson Msigwa, the chief government spokesperson, told reporters on Sunday that the port will have 28 berths but construction will start on 14 initially. Construction machinery was on the way, he said without giving further details, and the port will have a depth of up to 20 meters and be able to receive larger ships than any other port in the eastern Africa region. “The port will be able to handle ships with a capacity of up to 25,000 containers,” he said, without giving details of the value of the project nor the construction contractor. The East African nation signed a framework agreement with two developers, China Merchants Holdings International and Oman's State General Reserve Fund, in 2013 but implementation was delayed because the government said the terms were not favourable for the country. After taking office in 2021, President Samia Suluhu Hassan said they had started negotiations to revive the $10 billion project. https://www.reuters.com/world/africa/tanzania-start-constructing-new-port-december-official-says-2025-11-24/

2025-11-24 07:17

Crude oil prices erase almost all gains since October 22 US sanctions on Russia Diesel spreads remain elevated as conflict constrains global supplies EU ban on imports of fuels processed from Russian crude takes effect in January LONDON, Nov 24 (Reuters) - Oil prices eased on hopes for a U.S.-brokered Ukraine ceasefire, but diesel spreads remain stubbornly high as the war keeps global supplies squeezed with little sign of relief. Crude oil prices have dropped by around 1.2% since the November 20 announcement that the United States was brokering a ceasefire initiative to end the conflict that began with Russia’s full-scale invasion of Ukraine in 2022. Sign up here. The 28-point plan appears to have little chance of being accepted by Kyiv, as the proposal accepts most of Russia's key wartime demands. But U.S. President Donald Trump's backing of it remains significant, as it highlights how keen the White House is to hammer out a deal and get Moscow on board, whatever the cost. That, of course, calls into question the U.S. president’s appetite to enforce or ratchet up existing sanctions. Crude prices certainly suggest as much. They initially jumped after Trump on October 22 imposed sanctions on Russia's two top oil companies, Rosneft and Lukoil, but most of those gains have now disappeared. The sanctions took effect on November 21. Diesel is a different story, however. While benchmark European diesel prices have declined since news of the ceasefire discussions broke last week, prices remain around 8% above their October 22 levels. Moreover, diesel refining margins - the profit made from converting crude oil into fuel – have risen by 17% over that period to roughly $29 a barrel. DIVERGING SUPPLY OUTLOOKS This divergence has several causes. First, global diesel output is low, while the crude market is believed to be on the cusp of a huge glut, with the International Energy Agency forecasting crude supply to exceed demand by 4 million bpd next year. Diesel supply has taken a big hit in recent months. Russia is the world's second-largest diesel exporter after the United States. Ukraine's continued attacks on Russian refineries and export facilities have significantly curtailed Moscow’s fuels exports, with diesel shipments totalling just 669,000 bpd in October, only slightly higher than in September, when exports hit their lowest point since the Covid-19 pandemic. U.S. sanctions on Rosneft and Lukoil have further disrupted diesel supply. The two oil giants collectively exported so far this year around 270,000 bpd of diesel, roughly 37% of total Russian exports and 9% of global exports, according to Kpler. Sanctions will likely make Turkey and Brazil, the main buyers of Russian diesel, seek out other sources, increasing demand for the limited supply of non-sanctioned diesel. EUROPE TIGHTENS RUSSIAN BAN Perhaps more significant for diesel prices is the European Union's latest sanctions package against Russia that is set to take effect on January 21. These measures ban imports of fuels made from Russian crude into the EU, one of the world’s largest diesel markets. The Intercontinental Exchange (ICE), which operates the benchmark European diesel contract, said on November 18 that it will stop taking delivery of diesel that originates from refineries that processed Russian crude in the previous 60 days starting on January 16. These bans close a loophole that primarily benefited refiners in India and Turkey, which had been buying discounted Russian crude, processing it into diesel and then exporting it to Europe. The two countries accounted for 13% of Europe’s diesel imports of roughly 1.8 million bpd so far this year. Many large refiners have responded quickly. India's Reliance Industries, which accounts for the vast majority of India's diesel exports to Europe, said it had stopped importing Russian crude at its Jamnagar refining complex on November 20. While that may be too late to comply with the new ICE rules, the impact of the EU measures is clear. Indian diesel exports to the EU and Britain have plunged in November to 34,000 bpd, compared with an average of 136,000 bpd so far this year, according to Kpler. U.S. COMES OUT ON TOP The main beneficiaries of all these dislocations appear to be U.S. Gulf Coast refineries that are set to increase diesel exports to Europe. A key measure for U.S. refining profitability, the so called 3-2-1 crack spread, has gained 12% since October 22, according to LSEG data. To be sure, the current disruptions in the diesel market will gradually ease as markets recalibrate and new diesel routes are established. For example, discounted Russian diesel is likely to find a home in markets such as China. But, for now, the movements in the diesel market are sending an important signal. The chances of EU sanctions being fully lifted – something that would likely have a disproportionate impact on diesel versus crude prices – are low even if Trump does manage to engineer a resolution to this nearly four-year long conflict. Want to receive my column in your inbox every Monday and Thursday, along with additional energy insights and links to trending stories? Sign up for my Power Up newsletter here. Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tabyour essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/diesel-doesnt-share-crudes-optimism-about-ukraine-peace-plan-2025-11-24/

2025-11-24 06:51

PERTH, Nov 24 (Reuters) - Australia’s Fair Work Commission approved on Monday a union request to hold a ballot for workers to vote on striking at Woodside Energy’s (WDS.AX) , opens new tab Pluto LNG 2 project in a battle over pay at the facility. The commission ordered the ballot be held no later than December 4. If successful a strike could be held before the end of the year, slowing work at the facility where the company hopes to ship its first liquefied natural gas cargo in the second half of 2026. Sign up here. The Offshore Alliance, a group of the Maritime Union of Australia and the Australian Workers Union, said last week salary negotiations with contractor Bechtel had gone nowhere and its next move was to strike. Bechtel is the contractor building Pluto, which is an expansion of an existing facility in Western Australia’s Pilbara region. Bechtel had argued against allowing the ballot and industrial action, and has said the alliance should not be encroaching on more traditional onshore construction work. Three other unions have also made separate applications for a strike ballot for the same agreement, documents show. The commission has ordered their ballots also be held. Workers at Pluto 2 are currently receiving an hourly rate that is 30% less than workers doing the same job at the Wheatstone project, when factoring in changes in the consumer price index, the Offshore Alliance said in a statement. Wheatstone LNG is a separate project operated by Chevron (CVX.N) , opens new tab. The union group wants a 30% pay rise. Union sources told Reuters last week they expected push-back from the construction contractor. https://www.reuters.com/business/world-at-work/australian-labour-tribunal-approves-woodside-lng-project-strike-vote-2025-11-24/