Shanghai Stock Exchange Goes Against The Company Using Blockchain to Boost Stock Price
Shanghai stock exchange ( SSE), one of China’s two largest stock exchanges, said in a statement on Monday that it will pay supervision attention to the Shanghai U9 Game and the company’s secretary of the board as the listed company disclosed false and misleading information about its blockchain business.
The internet gaming company announced plans to step into the blockchain space by launching a blockchain game channel on January 8th.And its shares rose by the daily trading limit of 10% for two consecutive days.
Upon inquiry by the SSE, the company published a statement on June 13th , saying that “its current core business is researching and developing online games , as well as the operation of the games-focused information platform, which have nothing to do with blockchain.”
Investigation finds that Shanghai U9 Game only put the buzzword—blockchain—in a press release without carrying out specific blockchain-related business, nor having plans to raise funds or hire talents for any blockchain projects. The opening of a blockchain game channel will not exert a substantial impact on the company’s operation.
The SSE pointed out that major business decisions and new industrial layouts will have a significant impact on listed companies. Especially when blockchain is attracting a great deal of market’s attention, listed firms’ jumping on the blockchain bandwagon may significantly affect their stock price. But U9 Game disclosed sensitive information related to its blockchain business layout through non-official channel, and the information is fake, inaccurate and incomplete, which is seriously misleading investors.
The SSE asserted that the company’s initiative has violated the rules of Issuing the Stock Listing Rules of the Shanghai Stock Exchange, and Xu Lupeng, the secretary of the board of directors, was neglect of duty and should take accountability for the violation.