Shenzhen Stock Exchange Investigates 11 Blockchain-Related Companies
NEWS
November 18  |  2 min read

11 Chinese Blockchain-Related Companies Under Investigation after Stock Price Surge

The COIN360 Editorial Team

11 blockchain-related companies listed on the Shenzhen Stock Exchange were reportedly being investigated in the aftermath of the stock price surge at the end of last month.

On October 28, the Chinese stock market skyrocketed, after China’s President Xi Jinping urged the country to speed up blockchain technology adoption.

On November 4, the China Securities Regulatory Commission opened an investigation into the firms, suspecting illegal information disclosure. After news of the investigations reached the media, the stocks of many blockchain-related projects, including Guangdong Great Wall Group, experienced sharp dumps.

On November 18, it was revealed that 11 blockchain-related companies listed on the Shenzhen Stock Exchange were asked by the exchange about their blockchain business. 9 of the 11 have reportedly сlarified their blockchain efforts to regulators.

According to the exchange, the 11 companies under investigation are operating in the hardware, automobile, power equipment, textile, medical care, entertainment, education, and enterprise services industries.

The companies were reportedly asked to disclose information about their blockchain-related business models, blockchain applications, detailed profits and revenue information for the first three quarters of this year, and details of the business progress in the areas of HR, technology, and investments.

A full overview of recent developments in the blockchain industry in China is available in a recent COIN360 report.