Chinese Exchange To Investigate Another Stock Over Blockchain Claims

China’s Shenzhen inventory trade (SZSE) is investigating the second public company within every week over a claimed blockchain partnership.

According to a letter issued Tuesday, the SZSE is requiring a healthcare device maker referred to as Lifesense to provide details over its Monday statement that it’s going to accomplice with a blockchain startup to launch a research lab, purportedly aimed to boost blockchain adoption within the health care zone.

Right after the firm’s announcement, its stock price surged by means of 10 percent and reached the SZSE’s day by day limit. That drew interest from the exchange, which not only lists public stocks, however self-regulates public firms to conform to securities law in China.

The bourse has halted public trading of Lifesense stock, and has ordered the company to post a variety of details to confirm the research lab claim, inclusive of Lifesense’s funding stake, how the lab operates, its quantity of staff and predicted tasks in the next 3 years, amongst other statistics. In essence, the company is being puzzled whether it is taking advantage of blockchain hype to intentionally drive up its share price.

The probe got here just a day after a file on Monday that the SZSE had ordered another public company to submit evidence to show a blockchain trial completing claim.

The repeated investigations signal increasing efforts from the use of stock exchanges to crack down on misleading claims over blockchain connections.

In mid-January, the SZSE published a warning via its WeChat channel that it had noticed companies riding up stock costs following blockchain-related tasks, which might also or might not be substantiated.

And with a report with state-owned media source Beijing news, presently a number of over 20 public companies are being questioned by the Shenzhen and Shanghai Stock Exchanges.