The Shenzhen Stock Exchange has matured with the latest major exchange to symbolize that it is ready to begin blockchain-powered trading – after “re-developing and building” a blockchain-based equity registration and custody platform for Beijing’s regional equities market.
The exchange has co-built a blockchain solution for trading in unlisted private-sector companies for use in the capital.
Recently, CNWN published that the Shanghai Stock Exchange, China’s other major globally recognized exchange, is set to begin a pilot for its blockchain-based trading platform in conjunction with one of China’s most powerful financial regulators, the China Securities Regulatory Commission (CSRC).
According to the report from China Daily, the CSRC has now said that the Shenzhen Stock Exchange is ready to co-launch the Beijing Regional Trading Center’s new platform after prolix “blockchain technology application cooperation” on a platform capable of dealing with “unlisted corporate equity registration and [custody-related matters].”
The Shenzhen Stock Exchange is one of the most prominent in the Asia-Pacific region, with a market capitalization of USD 3.51tn in 2019 and 1,500 listings.
During the early part of 2020, the regulator invited five Chinese regions’ equities markets, including the capital and Shanghai, Jiangsu, Zhejiang, and Shenzhen, to begin blockchain development and pilots for trading operations.
The Shenzhen Stock Exchange has been operating with the Beijing-based body since 2017 and since summer this year on the new platform.
The organizations say that what they have co-built is primarily a regional equity market intermediary credit platform that will allow market intermediaries to share information using a blockchain network.
But with Shanghai is now launching its trading platform pilot, which also uses blockchain technology, the CSRC has stated it could use the pilot as a “blueprint” for other exchanges – possibly including Shenzhen’s lucrative exchange.
The latter has now developed an offering it calls the Shenzhen Stock Exchange Financial Blockchain Platform for use in the Beijing project – and may look to integrate this with its operations if its task in the capital proves to be prosperous.