Chinese Stock Exchange Probes Firm’s Blockchain Claim Amid Stock Rally

The Shenzhen Stock Exchange (SZSE), one of the two government-led stock exchanges in China, is probing a public company’s claimed links to a blockchain project that appeared to drive a rally in its stock price.

In an letter sent Monday to IT services firm Enjoyor, the bourse raised concerns over an article published via the company’s WeChat channel on Friday, March 16, that touted a successful trial of a blockchain solution by a company in which Enjoyor holds a stake.

Following the publishing of the article, the letter states, Enjoyor stock surged 10 percent, reaching a daily limit imposed by trading policies in the country.

Shenzhen Stock Exchange, founded in 1990, while itself not a securities regulator in China, is nonetheless a government-led organization that self-regulates listed public companies to ensure they comply with securities laws in the country.

According to the exchange, although the Enjover article has since been removed, the firm had boasted that the blockchain trial, completed by Chinese startup Numbull, is the world’s first blockchain application that can authenticate certificates in the field of forensic science…

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