A Chinese company is under investigations by the country’s market regulator after its stock shot up on the back of blockchain links. Great Wall Group has focused on porcelain for decades now, but in its financial filing last year, it announced that it was delving into blockchain. With China looking set to embrace blockchain, investors have descended on its stock in the past week and this has caught the watchful eye of the regulator.
Founded in 1996, the company has been involved in the research, design and production of art ceramic products. It also engages in education projects. However, in its 2018 financial filing, it revealed details about six blockchain projects that it was undertaking. At the time, it didn’t cause much of a stir in the market. All this changed when China’s president Xi Jinping called for the integration of blockchain recently.
Great Wall’s stock on the Shenzhen Stock Exchange soared for five consecutive days last week, becoming one of the most sought-after stocks in the exchange. This caught the eye of the China Securities Regulatory Commission (CSRC) which launched an investigation into the firm, a report by CoinDesk has revealed.
In its filing with the Shenzhen Stock Exchange, the company stated, “According to the Securities Law of the People’s Republic of China, the committee of CSRC has decided to open an investigation against the firm.” The regulator is investigating potential violations of information disclosure regulations.
The stock exchange’s board has also sought to find out more information about Great Wall’s blockchain projects. In a filing on October 28, the board, known as ChiNext, required the firm to explain how its businesses are related to blockchain technology. It also inquired on the projects’ backgrounds,