Shenzhen Stock Exchange in China launches Blockchain 50 Index

The Shenzhen Stock Exchange (SSE) in China has launched an index based on the performance of 50 blockchain companies, providing investors with a more diversified asset allocation option in blockchain investments.

According to the official announcement issued by the Shenzhen Stock Exchange on 12/24, in order to reflect the performance of companies in the Shenzhen securities market related to the blockchain industry, the Shenzhen Blockchain 50 Index with the index code 399286 was launched on 2019/12/24. This index will be based on the stocks of 50 companies listed on the Shanghai Stock Exchange that are involved in the blockchain industry.

The ranking of the top 50 blockchain-related stocks is based on the average daily market value over the past six months. This index is updated twice a year, in the second Friday of June and December respectively.

The performance of the Blockchain 50 Index on its first day was positive, with a closing increase of 1.15% on 12/24, closing at 3155.03 points. As of the time of writing, it has reached 3198.16, showing a continuous increase for three days.

Behind the Blockchain 50 Index

When constructing this index, the Shenzhen Stock Exchange ensures that the companies involved are actually utilizing blockchain technology, not just trading cryptocurrencies. It is understood that the 50 Index sample stocks cover various sectors such as banking, gaming, security, securities, image copyrights, information technology, and precision medicine, essentially encompassing the main application areas of blockchain.

As the world's understanding of blockchain deepens, the market can expect to see more new indices and fund products being introduced, providing more choices for asset allocation, especially as the cryptocurrency market is currently on a downward trend. It can be anticipated that there will be more blockchain-related index products.

Similar to the AI-driven CIX100 index created by the crypto data provider Cryptoindex, and the recent popular FTX exchange actively launching various derivative products.

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