Shenzhen Stock Exchange (SZSE) has released a new index called “Blockchain 50 Index.” This is part of a bid to provide more index-based instruments for investors, according to the exchange’s official announcement. The index reflects the performance of listed companies involved in the blockchain industry. Companies selected to form the sample stock include Ping An Bank, S.F. Holding, Visual China Group, and Midea Group.
Why it matters: Optimism sparked by President Xi Jinping’s recent remarks on the significance of blockchain development has prompted a slew of Chinese companies to engage in blockchain and digital currency-related businesses. The move is an indication that blockchain is becoming more mainstream in China.
Details: The “Blockchain 50 Index” is compiled to reflect the performance of companies involved in the blockchain industry in the Shenzhen stock market and to provide more index-based instruments to investors, the bourse said.
- The new index was jointly released on Tuesday by SZSE and its subsidiary Shenzhen Securities Information.
- The index samples Shenzhen-listed companies that are involved in the upper, middle, and lower streams of the blockchain industry including hardware equipment, technology and services, and other applications.
- The top 50 companies that form the sample stock were picked according to the average daily market value during the latest six-month period.
- The index is capitalization-weighted, meaning it is weighted according to the total market value of the company’s outstanding shares. The index will be regularly adjusted on the next trading day of the second Friday of June and December.
Context: Government-led efforts in Shenzhen have been rolling into action in the past year.
- In August, the government included the research and promotion of virtual money and central-bank backed digital currency in the newly released guideline for the Shenzhen Special Economic Zone.