China: Stock Exchange Halts Company’s Trading To Investigate Its Relevance To Blockchain

0
276

Chinese healthcare device manufacturer Lifesense suddenly found itself under close scrutiny from state-backed Shenzen Stock Exchange (SZSE) after its recent announcement to open a Blockchain research lab for applications relevant to the medical industry.

SZSE reportedly issued an order on March 20th for Lifesense to disclose information on its plans for said laboratory. A day prior to the issuance of the order, Lifesense made the announcement, which consequently caused a spike in their share by 10 percent, which then caught the exchange’s attention upon hitting their set daily limit.

Following this, the company’s stock trading was temporarily suspended until the required details on the laboratory was provided, explaining how Blockchain technology is relevant to the company’s products. The exchange is also asking for information on the annual plans of the project for the next three years, as well as the amount of Lifesense’s funding shares.

Lifesense has until March 23 to comply with the order. Other companies announcing Blockchain-related developments, such as Enjoyor Electronics, have started pulling down their own announcements so as to avoid the fate of Lifesense.

SZSE has previously warned companies that they will be closely observing those companies that may be using the popularity of blockchain to positively affect their stock prices.

 

Leave a Reply

Be the First to Comment!

avatar
  Subscribe  
Notify of