Shenzhen Tech Companies Make Mass Public Disclosures About Blockchain

A slew of Shenzhen-listed tech companies have made public disclosures on their level of involvement with blockchain technology, as regulators step their scrutiny of any risk-fraught Fintech undertakings.

Towards the end of last year Li Mingzhong (李鸣钟), vice-head of the Shenzhen Stock Exchange, flagged heavier regulation of risk-fraught undertakings by companies listed on the exchange.

Speaking at the CCTV Caijing Forum and the China Listed Company Summit on 12 December 2017,  Li said that the Shenzhen Stock exchange would “continually raise the sensitivity of regulation, strictly prevent speculation in relation to hot topic issues…[and] spur listed companies to make supplementary disclosures and explanations, as well as issue full risk warnings.”

Sina now reports that concerns on the part of regulators over blockchain-related speculative activity has prompted many Shenzhen-listed tech companies to make public disclosures on their involvement in the new Fintech area.

Shenzhen Forms Syntron (四方精创) has declared that its blockchain collaborative undertakings made an “extremely small contribution” to the company’s performance, given its first such project reaped revenue of just over HKD270,000.

Global Infotech (高伟达) said that while some investors viewed it as a blockchain-related stock, driving rises in the company’s share prices, in 2017 none of its revenues or R&D successes were blockchain-related.

The company nonetheless said that it viewed blockchain technology as a key area of Fintech development, and that it would focus on related research and development in future.

Xiamen 35.com Technology (三五互联) has announced that it is refraining from involvement with Bitcoin due to excessive legal risk, Hanwang Technology (汉王科技)

Spearhead Integrated Marketing Communication (华谊嘉信), Inspur Electronic (浪潮信息) and Electric Connector (电连技术) are amongst the Shenzhen tech companies claiming to have no involvement with blockchain technology. 

First Capital Securities (第一创业), however, announced that it was a founder member of the Shenzhen Financial Blockchain League (深圳市金融区块链联盟), and that it had continually participated in research in relation to the application of block chains in the securities industry.

Wonders Information (万达信息) said that its smart city operations made use of blockchain technology, while Cashway Technology (恒银金融) said that it was currently undertaking blockchain-related research and development. 

The announcements by Shenzhen tech firms follow a fraught year for Chinese Fintech, with regulators banning initial coin offerings and domestic financing using virtual currencies, as well as cracking down on micro-lending activities by online platforms.

Leave a Reply

Your email address will not be published. Required fields are marked *