Ever since President of China, Xi Jinping urged the country to involve themselves more within blockchain technology, the Shenzhen Stock Exchange supposedly witnessed a surge in stock prices.
As per news outlet Coin 360, this has officially forced the Chinese Securities Regulatory Commission to open an investigation targeting 11 blockchain-based firms. The reason for such an initiation is allegedly due to the rise in skepticism on the possible types of activities they might be involved in. Soon after news regarding the investigation spread, many of these businesses supposedly saw a drop in their stocks.
Bearing all this in mind, on Monday, November 18, 2019, the Shenzhen Stock Exchange supposedly requested more information from the 11 blockchain-based firms regarding their business activities. Since the request, 9 of the 11 have clarified to the best of their abilities.
8 BTC has reported more on the clarifications and it turns out that of those who’ve responded, some of the major fields of operation include that of, ‘intelligent hardware, automobile manufacturing, power equipment, textile, medical care, games, TV, communication, education and enterprise services.’
Interestingly, many of the firms in question have yet to solidify their business model and how their activities involve blockchain technology, with the latter remaining in its early stages for most businesses. This leads to the question as to whether or not such firms can sustain over the course of time!