China's NFT market will see slower but stable growth

Significance

In the current market, they are mostly considered to act as certificates of ownership for digital content such as audio-visual material and images. The most expensive NFT thus far is a work by the digital artist Pak, which was sold for over USD91mn at the end of last year. In China, too, NFTs are gaining increasing prominence.

Impacts

• China’s large technology companies will likely lead the domestic NFT market.
• Beijing will continue to push for Chinese tech standards on NFTs to become global standards.
• The government will closely track the social impact of NFT investment and tighten rules if excessive speculation hurts retail investors.