The Chinese stock exchange in a bid to ward off companies from issuing misleading information in order to drive hype around their company’s share price by affiliating with blockchain technology which would increase their share price potentially.
The Shenzhen stock exchange announced its intention of covering every loophole of every business who intends to mislead any investor by falsely associating themselves with “distributed ledger technology”, or blockchain.
The statement came as a result of the recent share price increase of Zheijiang Enjoyor Electronics Co. which was as a result of a blockchain-related announcement approximately one week ago. The 10% trading limit which was what triggered the statement and investigation came from the announcement claiming that an affiliate company of Enjoyor Electronics had entered into a partnership with a forensic sciences center based in Zhengjiang which will see the launch of what the company described as the worlds first blockchain-based electrical data forensic certificate.
This crackdown was as a result of several companies in recent months whos share price skyrocketed due to affiliation to bitcoin, blockchain or any other cryptocurrency. An example was the case of Long Island iced tea corp who was a beverage company; who is now known as Long Blockchain Corporation saw its share price increase by over 400% after the name change.
In a similar trend, Skpeople fruit juice also doubled their share value by renaming to Future Fintech, a company based in Hong-Kong.
This trend is beginning to gain waves as embracing blockchain innovation to boost stock prices appears to have begun to take off in mainland China. According to China Money Network, “More than 20 listed companies have been questioned by the Shenzhen and Shanghai exchanges about their suspicious speculation on blockchain.”
Shenzhen Exchange has stated that it “will closely monitor relative companies’ disclosure and their stocks in the secondary market. Companies that use blockchain to speculate and mislead investors will receive disciplinary punishment, and severe violations will be reported to the China Securities Regulatory Commission.”
After Shenzhen Exchange’s announcement, Shanghai Exchange followed suit, announcing that 20 companies listed on its exchange appear to be speculating on blockchain technology. Shanghai Exchange has stated that in several instances it has imposed trading halts and requested businesses to divulge information regarding ties to the blockchain industry.
Crypto Exchange Binance Might be Investigated for Money Laundering in India
What are shitcoins? Watch this Video to learn
Appealing to Regulators, Binance launches a Tax Reporting Tool
Leaving China, Crypto Exchanges Cancels Most of their Chinese Businesses
Patricia sponsors Big Brother Naija the 2nd time after recording 13k Users in 12 Hours
Yes! Bitcoin at $38k, See Why they Say It Has A Mind of its Own
The CBDC will lower the cost of doing business – CBN
Nigeria’s CBDC to Run on Hyperlegder Fabric
NatWest Suspends Payments to Binance
Watch the Latest Edition of Inside Blockchain – 29th Nov. 2020
Crypto Roast is LIVE – 27th Nov. 2020
AMA Series with Beam CTO & Tech Lead, Alex Romanov
Keep it Locked on to Cryptotvplus
Inside Blockchain | 16.11.2020
Inside Blockchain: WHY YOU SHOULD BECOME A BLOCKCHAIN DEVELOPER
How Blockchain Technology Can Transform Governance In Africa
Hedge Trading on OKEx
Trading cryptocurrency seems cumbersome to new traders, especially those new to the crypto space. There have been a lot of...
The Chances of BTC Dropping to 40k Is Slim – Prateek Suri
The founder and Chief Executive Officer of the Maser group, Prateek Suri joined Tony Obiajuru this morning, 15th March, 2021...
Binance Smart Chain; CeFi or DeFi?
The controversy around whether or not the Binance Smart Chain is centralized or decentralized was cleared on the Inside Blockchain...
How Earnathon is Making Crypto Adoption Easier
Earnathon is making cryptocurrency education and adoption easier with its unique learn and earn platform. It’s no news that the...
NaijaCrypto CEO Says CBN Cannot Ban Cryptocurrency Trading
The Chief Executive Officer of NaijaCrypto, Chiagozie Iwu has said on the Inside Blockchain Show powered by CryptoTVPlus that the...