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The Shenzhen Stock Exchange is preparing to launch blockchain-based trading

October 1, 2020

The Shenzhen Stock Exchange (SSE), an acronym in English, one of the largest stock exchanges in the Asia-Pacific region, announced that it has jointly launched a blockchain solution for trading with unlisted private sector companies. This new platform was created as part of the Beijing Regional Trade Center.

The report also indicated that the platform will be piloted with the Beijing Fourth Board Market (BFBM), the city’s regional stock market. Both groups hope “Reduce the cost of information asymmetry, standardize corporate capital management, and better perform the market capital financing function.” through the integration of blockchain technology.

Ge Yimiao, The Inspector of the Information Center of the China Securities Regulatory Commission announced that both SSE and BFBM intend to offer custody services and gave his opinion on the decision to implement a blockchain solution:

“We hope to gain credibility, reduce the cost of information asymmetry, standardize corporate capital management, and better leverage the market capital financing function to lay a solid foundation for the share transfer transactions of companies. That are not publicly traded. In addition, it is expected that equity financing and futures are implemented at a higher capital market level. “

The Shenzhen Stock Exchange is preparing to launch blockchain-based trading
The Shenzhen Stock Exchange is preparing to launch blockchain-based trading

30. September The Shanghai Stock Exchange also announced its intention to work with the China Securities Regulatory Commission to test a blockchain-powered trading platform. This news came shortly after announcing “significant progress” in building a blockchain trading network.

The Shanghai Stock Exchange added that had developed enough infrastructure to achieve on-chain functionality under supervision the nation’s financial control agency.

In July, The China Securities Regulatory Commission has issued a letter approving five regional securities markets using blockchain technology. This included action centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen.

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