11 Blockchain-related Listed Companies were Inquired by Stock Exchange in China
At present, 11 blockchain-related listed companies were under investigation of Shenzhen Stock Exchange amid their stock surge.
9 listed companies of them has clarified their blockchain efforts to the regulators. In the collected inquiry letters, words like “application”, “disclosure”, “blockchain technology”, “scenario”, “business” were frequently mentioned.
The inquiry letter sent by the exchange focuses on three topics: disclosure of the specific mode of blockchain business, including application scenarios, profit models; clarification of the business progress, including talents, technical reserves, investment funds and expected revenue; tips on operation risks.
It also asked profits generated from the projects and how much the realized profits and revenue from the projects affect the firm’s total profits and revenue over the last year and the first three quarters of 2019.
The 11 companies are respectively involved in the fields of intelligent hardware, automobile manufacturing, power equipment, textile, medical care, games, digital TV, communication, education, and enterprise services.
According to the firm’s response in the filing, two of the six projects are being developed by its internet training subsidiary Zhiyou Education, which plans to establish a cryptocurrency ecosystem based on its yet-to-be-developed OK Angel Coin software.
On the evening of November 4, China Securities Regulatory Commission decided to initiate an investigation into due to the suspected illegal information disclosure. As a result, the stock price of Guangdong Great Wall Group dump 6.35%, and other blockchain concept stocks also experienced a wave of “dump and pump”. Great Wall Group, which started off as a creative porcelain firm in 1996, disclosed details about six blockchain projects in its 2018 annual report, but investigators have questioned whether this blockchain push is genuine in light of its recent stock bump.
Most of the related enterprises do not have a very clear business model at present, and the layout of blockchain application is also in its infancy which has no essential impact on performance.
Earlier, Chinese state-run media calls enterprises to restrain from hype it but to lay a solid foundation and master the core technologies in our own hands if we want to occupy a commanding height in blockchain field. With less impetuosity and more focus on long-term progress, can the blockchain industry be developed healthily and steadily.