Number of Listed Companies Foraying Into Blockchain Has Doubled in China This Year
As blockchain fever is running wild in China, 8 companies listed on the Shanghai and Shenzhen stock exchanges have released 13 blockchain-related announcements from January to August 15.
The announcement number has doubled compared with only two from 6 public companies for the same period last year, according to Securities Daily.
Research from Iyiou.com indicates that the number of Chinese A-share companies that have made forays into blockchain technology has risen to 70 in total.
Blockchain has a good chance to revolutionize financial and non-financial fields due to its tamper-proof, transparent, and self-governance nature. Although the technology remains in a fledgling state, an increasing number of listed companies in the country head into the space hastily through investment, buying shares of blockchain companies or setting up their own blockchain labs.
It is found that the listed companies that take stake in blockchain startups just contribute a relatively small amounts of money and those starups still have a long way to go before achieving broad commercial adoption of its blockchain products.
For example, Tunghsu Azure Renewable Energy invested 15 million yuan, or $2.3 million, in a one-year-old blockchain startup, called MixisLink Technology ,to promote smart technologies in energy management and trading in late June. Tunghsu Azure acquired a 20-percent stake in MixisLink Technology.
Some other listed companies team up with other investors to set up new blockchain initiatives. Zhejiang Huamei Holding, an advertise and publishing service provider which is affiliated with Hangzhou Daily Press Group, has joined force with 3 investors on August 4 to set up a blockchain startup in Hangzhou.Huamei will take a 35 percent stake in the venture. Also, some companies have built their own blockchain labs, including the Shenzhen-listed Shunya International Brand Consulting (Beijing) Co Ltd.
The sharp increase in A-share companies involved with blockchain technology has triggered heightened regulatory concerns. Shanghai and Shenzhen Stock Exchanges have issued many “letters of inquiry” to these companies, asking whether they used the blockchain concept to help drive up their flagging share price and requiring them to clarify the potential impacts on their overall business performance.
But these listed companies also indicated in their announcements that their investments in blockchain technology were still at an early stage, and the blockchain operation will not have a substantial impact on the company’s overall performance in the short term.