Chinese stocks associated with blockchain jumped after President Xi Jinping extolled the technology popularized by Bitcoin.
Dozens of Chinese financial and technology firms making use of the digital database rose to their daily 10% limit on Monday.
It was the first day of trading in China after Chinese state media reported on Friday evening Xi's speech urging the development of blockchain technology.
Xi's remarks represented a stamp of approval from the highest level of China's government of blockchain, potentially accelerating and widening the application of the technology in industries including banking and supply chain management.
A blockchain is akin to a digital ledger, allowing users to record and store information securely.
The technology underpins most cryptocurrencies, such as Bitcoin and Ether. Most cryptos soared after Xi's speech, with the market leader Bitcoin reaching a one-month high.
Blockchain would play "an important role in the next round of technological innovation and industrial transformation," the state news agency Xinhua quoted Xi as saying at a study session for members of the Politburo, China's top decision-making body, on Thursday.
"Major countries are stepping up their efforts to plan the development of blockchain technology. Greater effort should be made to strengthen basic research and boost innovation capacity to help China gain an edge in the theoretical, innovative and industrial aspects of this emerging field," Xi said.
Meng Yan, deputy head of the Chinese Institute of Digital Assets, said Xi's remarks could spark a race between countries to become the global leader in the digital economy.
"We are in the middle of a digital arms race," he said in a recent article.
China and the US are racing to gain an upper hand in technologies, such as artificial intelligence and 5G, believed to be key to their economic growth and national power in the next few decades.
Xi did not mention cryptocurrency " the best-known application of blockchain technology. China has banned Bitcoin and all other cryptocurrencies.
Additional reporting by Liu Zhen.
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