The Shenzhen Stock Exchange (SZSE), one of China's key financial marketplaces, has introduced a new equity index designed to track the performance of 50 listed companies actively involved in blockchain technology development. Announced on December 24, 2019, this strategic move highlights the growing recognition of blockchain as a transformative force in digital infrastructure and enterprise innovation.
Unlike speculative crypto assets, this index focuses exclusively on publicly traded firms with verifiable blockchain applications—ensuring that inclusion is based on real technological engagement rather than market hype. This careful curation reflects a broader trend among financial institutions to separate substantive tech adoption from short-term digital asset speculation.
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How the SZSE Blockchain 50 Index Works
The SZSE Blockchain 50 Index selects its components from companies listed on the exchange that are actively engaged in blockchain research, development, or implementation. The selection process prioritizes firms with measurable contributions to the ecosystem, such as proprietary platforms, enterprise solutions, or partnerships involving distributed ledger technology.
To determine eligibility:
- Companies are ranked by average daily total market capitalization over the past six months.
- The top 50 firms by value are chosen as sample stocks.
- Weighting is based on free-float market capitalization, meaning only shares readily available for trading influence the index value.
- Rebalancing occurs twice a year—on the trading day following the second Friday of June and December—to ensure the index remains representative of current market leaders.
This methodology ensures both transparency and relevance, aligning with global best practices for thematic indices while maintaining strict criteria to prevent inclusion of companies merely "riding the blockchain wave" without genuine involvement.
A Strategic Move Amid Regulatory Caution
The launch of the index comes amid China’s nuanced stance on blockchain technology. While cryptocurrencies like Bitcoin remain tightly restricted, the Chinese government has consistently supported blockchain innovation as part of its national digital transformation agenda.
In fact, just weeks before the index announcement, Chinese President Xi Jinping emphasized blockchain as a critical frontier for technological self-reliance during a Politburo study session. This top-level endorsement likely paved the way for SZSE’s initiative, signaling official approval for institutional engagement with blockchain-related equities.
However, regulators remain vigilant against misuse. The SZSE explicitly stated that companies included must demonstrate actual blockchain integration—not just marketing claims. This caution stems from past incidents where firms artificially inflated stock prices by announcing vague “blockchain initiatives” with little technical substance.
For example, in March 2018, Lifesense, a healthcare device manufacturer, saw its share price jump 10%—hitting the daily limit—after announcing a “blockchain lab.” The SZSE promptly suspended trading and launched an investigation into the validity of its claims. Such actions underscore the exchange’s commitment to market integrity and informed investor participation.
Global Context: How SZSE Compares to Other Blockchain Indices
While the SZSE Blockchain 50 is one of the first official indices from a major Chinese exchange focused solely on blockchain, it joins a growing number of similar benchmarks worldwide.
In October 2019, Nasdaq listed the CIX100, an AI-driven index created by crypto data provider Cryptoindex. This index tracks global companies and projects with significant blockchain activity, blending traditional equities with crypto-native protocols.
Earlier that year, in September, Nasdaq also launched the Defix Index—a benchmark for decentralized finance (DeFi) projects. It includes blockchain-based platforms like Amoveo (a proof-of-work protocol), 0x (a decentralized exchange framework), and Augur (a prediction market platform).
These developments indicate a maturing landscape where financial markets are creating structured ways to measure and invest in blockchain innovation—whether through public equities or decentralized protocols.
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Core Keywords Driving Market Interest
Identifying the right keywords helps align content with what investors and tech professionals are searching for today. For this topic, key search terms include:
- blockchain index
- Shenzhen Stock Exchange
- blockchain companies
- crypto-related stocks
- DeFi projects
- digital transformation
- distributed ledger technology
- market capitalization weighting
These terms reflect both investor interest in accessible exposure to blockchain and institutional efforts to standardize evaluation metrics in an evolving sector.
Frequently Asked Questions (FAQ)
Q: What is the SZSE Blockchain 50 Index?
A: It’s an equity index launched by the Shenzhen Stock Exchange that tracks the performance of 50 listed companies actively involved in blockchain technology development and implementation.
Q: Are cryptocurrency companies included in the index?
A: No. The index includes only traditional companies listed on SZSE that use blockchain technology in their operations or products—not standalone cryptocurrency firms or digital asset issuers.
Q: How often is the index rebalanced?
A: The index is reviewed and adjusted twice a year—on the trading day after the second Friday in June and December—to reflect changes in market leadership and company performance.
Q: Does being in the index mean a company is profitable or safe to invest in?
A: Inclusion indicates active blockchain involvement and strong market capitalization, but it does not guarantee financial health or investment returns. Investors should conduct independent due diligence.
Q: How is this different from Bitcoin or Ethereum price tracking?
A: Unlike volatile crypto asset prices, this index measures established companies using blockchain as part of their business model—offering a more stable, regulated way to gain exposure to the technology’s growth.
Q: Can international investors access this index?
A: Yes, through various financial instruments such as ETFs or mutual funds that may track or replicate the index, though direct access depends on individual brokerage capabilities and regulatory approvals.
Looking Ahead: Blockchain’s Role in Institutional Finance
The creation of the SZSE Blockchain 50 Index marks a pivotal step toward mainstream financial recognition of distributed ledger technology. By setting clear inclusion criteria and leveraging transparent methodologies, the exchange provides investors with a reliable tool to monitor and participate in China’s blockchain-driven digital economy.
As governments and corporations increasingly adopt blockchain for supply chain management, identity verification, and secure data sharing, indices like this will play a crucial role in shaping investment trends and benchmarking innovation.
👉 Stay ahead of the curve—see how blockchain is transforming institutional investing today.