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China’s Shenzhen Stock Exchange Issues Blockchain 50 Index

China’s Shenzhen Stock Exchange (SZSE)– the fourth largest in Asia and the eighth largest stock exchange in the world, operating independently in mainland China, has announced the launch of a new index named “Blockchain 50 Index” in the country. This move is considered a significant step in the development of the blockchain industry in China.

In China blockchain is becoming mainstream from the day President Xi Jinping announced the optimism towards the underpinning technology of Bitcoin, although negating the major digital asset by its upcoming counterpart CBDC.

China’s Shenzhen Stock Exchange Blockchain 50 index

As per the information, the “Blockchain 50 index” released by Shenzhen Stock Exchange is to track the performance of the organizations deploying blockchain technology in China. 

To initiate the process, the ranking of the top 50 blockchain-connected stocks of the companies classified as per their average daily market value from high to low which were evaluated during the last six months.

The new index is a joint effort by China’s Shenzhen Stock Exchange (SZSE) and its subsidiary Shenzhen Securities Information Company Limited (SSIC)

Reportedly, in a year, the index is revised two times i.e., on the second Friday of June and December. That means the index is capitalization-weighted. It is weighted as per the total market value of the company’s outstanding shares.

The name of the selected companies to form the sample stock include Oriental FortuneS.F. HoldingPing An BankMidea GroupVisual China GroupJinyi Technology, Sifang Jingchuang, and last but not least, Gao Weida.

New Index Participants

Reportedly, out of 50 companies, Midea Group and Ping An Bank have a market capitalization of more than 100 billion, 16 companies have a market value of more than 10 billion, and approx. 30 companies have a market value of less than 10 billion.

The exchange’s official announcement indicates that the attempt is a part of a bid to provide more index-based instruments for investors and to see the growth of the blockchain-based firms in China. 

Shenzhen Stock Exchange (SZSE) isn’t the only stock exchange that has introduced a blockchain-focused index. In Oct, the American and the world’s second-largest stock exchange by market capitalization of shares traded so far Nasdaq has listed the AI-powered crypto index “CIX100” which is created by the cryptocurrency data source Cryptoindex.  

Cryptoindex CIX100 is already trading on ReutersBloomberg financial terminals besides the traders’ social networking and data analysis site TradingView which is providing access to the index for its users. Meaning, traditional traders have the liberty to an index for the 100 strongest-performing cryptocurrencies and tokens.

Image by Gerd Altmann from Pixabay 

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