Shanghai Stock Exchange moves to cool down blockchain heat
Trading halted on Yi Jian Supply Chain Management Co. Ltd. but stock bounces back 10% the next day
The Shanghai Stock Exchange has suspended the trading of a public company suspected of speculating on the concept of blockchain technology twice in five days, Yicai.com reported.
The company, Yi Jian Supply Chain Management Co. Ltd., claims it provides supply chain management services through the use of innovative blockchain based solutions to control risks in traditional supply chains.
The Exchange thinks blockchain technology is still in the development stage, and, it is still difficult to form a stable business based on the technology. Thus, Yi Jian and nine other companies are suspected of showing signs of speculation.
Yi Jian was suspended from trading on January 11 and 12. However, its trading price rose 10% on Thursday when it resumed trading. Its trading will be suspended for the second time on Wednesday.
The SSE said it will undertake suspension inquiries, suspension cooling and other regulatory measures as it monitors blockchain concept related companies.