China Considers Implementing Blockchain Technology in Stock Trading Centers

The China Securities Regulatory Commission, or CSRC, recently issued a letter approving five regional stock exchanges. They will include capital centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen. These and other regions were given permission to begin experimenting with a blockchain pilot in early July.

Blockchain and stock trading

China Internet Finance Association says blockchain is maturing
According to the Beijing Local Financial Supervision and Administration, the next step for the CSRC is to guide the Beijing Equity Trading Center to carry out the blockchain pilot. The trading center in Beijing has reportedly built a „relatively perfect infrastructure“ for capital registration, custody and transfer of transactions. Management says they have taken the lead in online capital registration custody and capital exchange for companies in China.

As of June 30, 2020, the Beijing Stock Trading Centre has served more than 1,000 unlisted corporations in the city. They have been entrusted with capital for 9 commercial banks, including 1 rural commercial bank, 1 private bank, 1 direct sales bank and 6 rural banks. Their total share capital is more than 21 billion yuan, or approximately USD 3 million.

Chinese experts suggest using blockchain technology in the „social credit“ system

The Beijing Equity Trading Center, together with the Shenzhen Stock Exchange and other regional stock market players, reportedly launched a chain of regional stock market intermediary credit reference blocks in late 2017.

As Cointelegraph reported earlier, the China Internet Finance Association said the use of blockchain technology in the country has matured in recent years. Chinese experts also held a seminar to explore the implementation of blockchain in China’s new „social credit system“.