Shenzhen Stock Exchange Launches Index for Blockchain Firms: A New Era in Market Tracking

The Rise of Blockchain in Shenzhen

Shenzhen, China’s buzzing tech capital, has officially made its move into the blockchain arena with the launch of an index specifically for blockchain firms on the Shenzhen Stock Exchange (SSE). It’s like when you finally realize your high school friend who claimed they were developing an app actually did it—only with a bit more legitimacy.

Understanding the New Index

Announced on December 24, this index tracks 50 lively companies that are not just dabbling in blockchain but are actually committed to using the technology. The companies are ranked based on their average daily market value from the past six months. Think of it as a popularity contest, but for stocks—without the awkward high school dance.

When Does it Update?

The index is refreshed twice a year, specifically on the second Friday of June and December. This schedule ensures the index reflects the best and brightest in the blockchain space—no seasonal fads here.

Due Diligence: Not Just Another Buzzword

The SSE isn’t just throwing companies together based on their blockchain claims. They conducted meticulous due diligence to ensure that the firms included in the index are genuinely engaged with blockchain technology. No flash-in-the-pan hype here, folks!

A Lesson from Lifesense

In 2018, the exchange suspended trading for Lifesense, a health tech company, while investigating its purported blockchain applications. After promising a “blockchain laboratory,” Lifesense saw its share price skyrocket, but the SSE pulled the reins to investigate further. Remember kids, with great market caps come great responsibilities!

SSE’s Global Standing

But what’s the SSE’s significance in the grander scheme of things? With a market capitalization of $3.12 trillion, it proudly claims the title of the fourth-largest exchange in Asia. That’s right, folks—the SSE is a heavyweight contender in the global stock market arena.

Following in Fancy Footsteps

Major exchanges are starting to hop on the blockchain index train. Nasdaq, for instance, has recently introduced indices that cater to blockchain and cryptocurrency firms. Back in October, it launched the AI-powered CIX100 index alongside the blockchain DeFi index named Defix.

The Future is Bright for Blockchain

With movements like this from SSE, it seems clear that blockchain is not just a passing trend. It’s reaching the heights of mainstream financial institutions, proving that it’s not just about hype—it’s about the future!