China's Shenzhen Stock Exchange Investigating Blockchain Partnership

SZSE is suspicious that some companies are raising untrue claims of partnering with companies or launching blockchain-related projects, with an intention of driving up share prices. SZSE is investigating another company in relation to blockchain claims.   

China‘s Shenzhen Stock Exchange (SZSE) has requested Lifesense to explain an announcement they made on Monday that they will partner with a blockchain startup for a research lab project.

The announcement claimed that the project would boost adoption of blockchain technology in the health sector.

The announcement of partnership caused Lifesense stock price to increase by 10 percent to reach SZSE’s daily limit. However, this drew the attention of the firm, which self-regulates firms to comply with securities.

Lifesense is requiring to substantiate the claim by explaining their stake. It details how it operates, tell the number of staff it has as well as the projects it expects to undertake in the next three years.

This is among other information set to reveal if the company is taking advantage of blockchain hype to have its share price go up.

It is the second time SZSE is moving to ask a company to substantiate claims relating to blockchain technology. The company warned in mid-January that some companies were using false blockchain claims to drive up stock prices.

Beijing News reported that SZSE is investigating over 20 public companies.

SZSE also asked another company to substantiate claims of blockchain trial completion. This is according to a report published on Monday.

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