50 blockchain firms enter new index on Shenzhen Stock Exchange

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Updated on Mar 11, 2020

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China's Shenzhen Stock Exchange recently rolled out a new index, filled with blockchain companies.
The index contains 50 firms whose stock performance is now being tracked, and in which Chinese investors can choose to invest.
The move represents China's newest effort to push blockchain adoption forward, and expand its use.

Blockchain technology continues to gain
respect and spread more and more throughout the business world. An obvious
proof of its advancement and development comes from the fact that as many as 50
blockchain-based firms recently emerged in a new index on the Shenzhen Stock
Exchange.

According to new reports, the index is called Blockchain 50 Index, and it allows investors to invest in the index and get exposure to the firms based on emerging tech. The index is currently tracking the performance of some rather large firms, including S.F. Holding, Midea Group, Ping An Bank, Visual China Group, and others.

According to the announcement, it was released
by Shenzhen Stock Exchange, in collaboration with its own subsidiary, Shenzhen
Securities Information. The announcement goes on to say that the listed firms
are involved in all streams of the blockchain industry, going from various
services, technology, hardware, and more.

All 50 firms were carefully selected based on
their average daily market value over the course of the past six months.
Further, the entire index is capitalization-weighted. In other words, the
shares were listed in accordance with their total market cap.

China keeps pushing blockchain
adoption

The arrival of the blockchain was sudden, but
it did not come as a surprise. Ever since China’s president, Xi Jinping,
praised blockchain in his speech a few months ago, the country has been making
headlines thanks to its effort to push blockchain adoption.

Countless private players started working on
the development and improvement of blockchain, but also on its different
products and use cases. Of course, China’s new fascination with blockchain does
not include cryptocurrencies.

Now, while this is a pretty important move for the future of blockchain in China, it is worth remembering that the US-based NASDAQ has been tracking crypto and blockchain stocks for much longer. Still, China continues to push the blockchain in hopes of taking the lead, with its foreign exchange regulator’s official recently revealing plans to expand its blockchain-based cross-border financing pilot.