China’s Shenzhen Stock Exchange Introduces New Index to Track Performance of Top 50 Local Blockchain Startups

The Shenzhen Stock Exchange (SSE), the stock exchange of China’s leading technology hub Shenzhen city, has introduced an index that tracks the performance of the country’s top 50 blockchain startups.

As noted in an announcement on December 24, the performance index will be based on the stocks of 50 blockchain-focused firms that are currently listed on the SSE, and are active in China’s emerging crypto and DLT industry.

The top 50 blockchain-related company stocks have been ranked based on their average daily market capitalization during the past six months. The index will be updated two times each year (on the second Friday of June and December).

Before developing the index, the SSE reportedly performed an investigation that determined whether the firms being listed were actually using DLT or blockchain, instead of just trying to take advantage of the excessive hype surrounding the technology.

In March of last year, the SSE had halted trading of Lifesense, a healthcare device manufacturer, while the stock exchange’s management carried out investigations into the company’s operations and its claims about using blockchain tech. A company release regarding the development of a “blockchain laboratory” had led to a significant 10% increase in Lifesense’s share prices (reaching the SSE’s daily limit).

SSE is notably one of only two major local stock exchanges that operate independently in mainland China. Stock market data website TradingHours shows that the SSE’s market capitalization stands at around $3.12 trillion, which makes it Asia’s fourth largest stock exchange the eighth largest globally.

Large stock exchanges throughout the world have started listing indexes that track the performance of blockchain and cryptocurrency-related companies. In October 2019, Nasdaq, the world’s second-largest stock exchange with a market cap of over $10 trillion, began listing the artificial intelligence (AI)-enhanced CIX100 index launched by digital currency data provider Cryptoindex.

In September 2019, Nasdaq also began listing a blockchain-focused, decentralized finance index called Defix, which includes the proof-of-work (PoW)-based blockchain project Amoveo, decentralized crypto exchange protocol 0x and Augur, a leading decentralized prediction market protocol and platform.



Sponsored Links by DQ Promote

 

 

Send this to a friend