Home > News > China to implement blockchain in equity trading centers

China to implement blockchain in equity trading centers

The country’s Securities Regulatory Commission allows regional equity markets to work with blockchain in the equity trading industry

China’s Securities Regulatory Commission (CSRC) recently issued a letter allowing five regional equity markets to experiment with blockchain in the equity trading industry. The markets that were improved include the equity centers of Beijing, Shanghai, Jiangu, Zhejiang, and Shenzhen.

These regions, alongside others that have not yet been specified, have been authorised to start experimenting with a blockchain pilot.

In a blog post released by the Beijing Local Financial Supervision and Administration, the next step for the CSRC is to guide the Beijing Equity Trading Center in carrying out the blockchain pilot.

It is rumored that the trading center has already built a “relatively perfect infrastructure” for equity registration, custody, and transaction transfer. The administration has noted that they have taken the lead in areas concerning online equity registration custody and equity change of enterprises in China.

In the past, the Beijing Equity Trading Center has collaborated with the Shenzhen Stock Exchange and other market operators to launch a regional equity market intermediary credit reference blockchain.

China has been eager to explore the mainstream use of cryptocurrencies and its related technologies.  The Internet Finance Association of China has observed that the country’s use of blockchain technology has matured in recent years.

Early this year, Chinese tech experts hosted a seminar entitled “Blockchain technology helps China’s new social credit system”, on the 14th of January, where they began exploring the implementation of blockchain in the country’s new social credit system.

Beijing’s Equity Trading Center has served more than 1,000 unlisted joint stock companies in the city. The trading center has been entrusted with equity for nine commercial banks. This includes one private bank, one rural commercial banking, one direct selling bank, and six rural banks. Their total share capital is over 21 billion yuan (around $3 million.)

Research and development for the country’s digital yuan has entered a new phase as more high-profile companies opt into testing the digital currency. The latest firm to assist the People’s Bank of China in implementing the  project is the Meituan Dianping, China’s largest wholesale and delivery platform for products.

Meituan Dianping currently has around 450 million customers and almost six million companies using it to sell their products.

DiDi Chuxing, the Chinese version of Uber and the streaming platform Bilibili, are also participating in testing the digital yuan. DiDi has around 550 million users, while Bilibili has a client base of more than 170 million.

Tags:

Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.