China’s Stock Exchanges Suspend Shares Over Blockchain Speculation

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China’s stock exchanges have issued public warnings about speculation involving blockchain-related companies, as well as suspended trading of several blockchain-affiliated shares.

On Wednesday 17 January the Shanghai Stock Exchange suspended trading of several shares reportedly involved with the development of blockchain technology, including Cashway Technology, Shanghai Ace and Sichuan Hejia, as well as announced that it is pursuing investigations into these companies.

The Shenzhen Stock Exchange publicly announced that it was “paying close attention to the information disclosures and secondary market transactions of listed companies involved with the concept of blockchains, and will promptly adopt disciplinary measures with respect to illicit conduct involving the use of the concept of blockchains to engage in speculation or mislead investors.”

According to the announcement a number of listed companies had seen sharp increases in their share prices following the public dissemination of information on their blockchain activities.

The Shenzhen Stock Exchange said that it had applied regulatory measures including inquiries and trading suspensions to 17 firms in relation to the matter, and requested full risk disclosures in relation to their blockchain investments, activities and earning models, as well as actual revenues and impact upon company performance.

A week ago a slew of Shenzhen-listed tech companies made public disclosures about their level of blockchain-related business activity at the behest of local regulators.

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