Chinese regulators are stepping up scrutiny of listed companies’ plans for new blockchain-related projects, after a string of incidents in which listed firms have announced vague schemes in an apparent attempt to boost their share prices, Caixin reports.
The shares of internet gaming company Shanghai U9 Game Co were sent skyrocketing last week after the company announced that it was entering the blockchain space, with its shares hitting the 10% daily limit for price increases on the Shanghai exchange two days in a row.
But on Thursday, the company halted trading on its shares and made public a series of questions submitted to the company by the Shanghai Stock Exchange, which pressed the company to provide concrete plans for its blockchain scheme.
Several other companies have also seen their share prices leap in value after announcing that they would get involved in developing blockchain technology. This includes Eastman Kodak, which saw its stock surge 171% over three days after it announced on Tuesday New York time that it was moving into blockchain.