Posted 6 months ago | by Ben Armstrong
Shenzhen’s Stock Exchange Prepares To Introduce Blockchain-Backed Trades
Shenzhen's stock exchange, one of Asia-Pacific's major exchanges, reported its plan to introduce an unlisted private-sector blockchain-based trading approach. This new platform was developed as an important element of the Beijing Regional Trade Centre.
The country continues to show its leading position in the blockchain development space as a recent announcement revealed that Shenzen’s stock exchange is prepareing for the launch of blockchain-powered trades.
China is Working to Use Blockchain
Blockchain implementation is expected to "reduce the cost of information asymmetry, standardize corporate equity management, and better play the function of market equity financing."
The technology brings big changes to developing markets and allows many countries to "leap" to new levels of development. China is apparently good at seizing the opportunity – although many of the platforms may not be able to be used internationally.
According to Ge Yimiao, inspector of the Information Center of the China Securities Regulatory Commission, both SSE and the BFBM plan to provide custody facilities.
“We expect to get credibility, to reduce the cost of information asymmetry, standardize corporate equity management, and better leverage the function of market equity financing to lay a solid foundation for non-listed companies’ share transfer transactions. Also, it expects to implement equity financing and the future to a higher level of capital market.”
A New Start for Blockchain Trading
The Shanghai Stock Exchange also disclosed on September 30 that it planned to initiate, together with the China Securities Regulatory Commission, a pilot for a blockchain-backed trading platform.
The decision to launch blockchain-powered trades came shortly after the announcements of "important progress" in developing a blockchain trading platform.
Shanghai's exchange added that under the financial watchdog the nation had developed adequate infrastructure to achieve chain functionality.
Back in July, a letter was issued under the China Securities Regulatory Commission, whereby the institution authorized the operation of five regional blockchain-oriented stock markets, including Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen equity centres.
The development of blockchain in both public and private investment has spurred the integration of this technology strongly in China. Across industries, large and small businesses or even the public sector continue to test and implement blockchain.
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