Shenzhen Stock Exchange, one of the largest exchanges in the Asia-Pacific region, has announced the launch of a blockchain solution for trading unlisted companies in the private sector. This new platform was set up within the Beijing Regional Trade Center.

The report also indicated that the platform will be piloted in conjunction with the Beijing Fourth Bulletin Board website, or BFBM, the city’s regional stock market. Both groups expect to “reduce the cost of information asymmetry, standardize corporate inventory management, and better fulfill the market finance function” by integrating blockchain technology.

Ge Imiao, an inspector in the clearinghouse of the China Securities Regulatory Commission, discovered that SSE and BFBM intend to provide storage services and share his thoughts on the decision to implement a blockchain solution:

“We hope to build trust, reduce the cost of information asymmetry, standardize company capital management, and make better use of market financing to lay a solid foundation for unlisted transfers. Equity financing and the future of a higher capital market are expected to achieve.”
On September 30th, the Shanghai Stock Exchange announced its intention to test a trading platform that supports blockchain technology with the China Securities Regulatory Commission. The news came shortly after the announcement of “significant progress” in creating a blockchain-based trading network.

The Shanghai Stock Exchange added that it has built enough infrastructure to provide network functions under the supervision of the country’s economy.

Back in July, the China Securities Regulatory Commission released a letter approving five regional blockchain-based stock markets. These include shopping malls in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen.

Source: CoinTelegraph