Hong Kong’s Ping Shan Tea Group Rebrand into Blockchain Group Name Fials to Impress Investors
A name can be symbolic, meaningful, strong, and many other qualities. A company’s name should be enough to tell consumers what they are about. However, when a company is already known by one name, does it make much sense to change it in the hopes of getting more attention? Apparently, a few companies listed on the Hong Kong stock exchange thought it would help, though they ultimately turned out to be wrong.
The concept of changing a name to something more appealing to the public is a frequent practice for companies that want to improve their share price. The name is often connected to a booming industry as a lure into their own, and there are many times that the name has nothing to do with what the company does. Obviously, this name change does not always work, and it could even be a telltale sign for investors to stay away. Dickie Wong, an executive with Kingston Financial Group, said that there are plenty of times that companies have associated their new name with major trading concepts in the last two decades, like fintech and the internet.
One example happened just a few weeks ago was a change from CCT Land Holdings to the name “Greater Bay Area Investments Holdings,” which shareholders approved. However, Wong pointed out that changing names frequently would signal that the company is having major troubles in some way. At this point, the change in CCT Land Holdings’ name has not changed anything about their value.
A more interesting case is that of Blockchain Group, which has not always been the name of the company. Until November 2017, the company’s name was Ping Shan Tea Group, which makes traditional teas and has absolutely nothing to do with the driving technology behind cryptocurrencies. The name change does follow the pattern of a company in trouble, considering the multiple directors that have resigned and the lack of funding for audits after entering liquidation last month.
It seems that the message here is that consumers need to do thorough research about the companies that they associate themselves with. Considering the way that the crypto and blockchain industries are growing lately, it is likely that this kind of rebranding and renaming will happen again. When it comes to investments, it may be best to stick with exchanges and companies you know.