China – At the Forefront of Blockchain Technology Innovation
China is home to some of the world’s largest companies. The list is endless, topped by industry leaders such as Alibaba (BABA), China Mobile (CHL), JD.com (JD), and Baidu (BIDU). The emerging market has actively made its mark in every industry that it has set foot in. Now, with the blockchain space drawing close and increasing market attention, China is well positioned to gain more ground in this area as well.
In the US, Exchange-Traded Funds such as the Reality Shares Nasdaq NexGen Economy ETF (BLCN) and the Amplify Transformational Data Sharing ETF (BLOK) help investors gain exposure to blockchain stocks. These ETFs command around $130 million and $190 million in total assets, respectively. However, none of these funds currently provide exposure to Chinese A and H shares, effectively leaving a large group of highly innovative companies out of the ETF universe.
Now, China has always been a central player in the growth and development of blockchain related technology innovation. While maintaining the lead in promoting blockchain technology and its applications, they’ve also been vigilant towards monitoring the cryptocurrency and ICO market for investor protection. Chinese blockchain stocks thus demand increased investor attention as of today.
While shares of the well-known top blockchain stocks have been rising with the tide, their lesser-known China-based blockchain-savvy company’s stocks have managed to escape the limelight so far. We went on to investigate the possibility of a bargain opportunity to identify certain China-based blockchain stocks, which albeit lesser-known, hold huge potential.
Here’s a list of 5 China-based blockchain stocks:
Ygsoft has applied blockchain to use cases such as group management, smart energy, smart products, and social interconnection. The company has already introduced application products based on blockchain technology such as trusted electronic certificates and an authentication wizard. Here are three blockchain-related patents registered by the company:
- Management over electronic certificates and relevant equipment and network,
- Electricity exchange method and devices based on blockchain technology
- Resource exchange method and devices based on blockchain technology.
Hundsun Technology (600570.SS)
The Chinese software giant has invested in the leading smart contracts platform for institutional applications of blockchain technology – Symbiont – “because of its superior, mature and highly differentiated DLT stack.” Hundsun is the leading fintech company serving China’s institutional securities, banking, and insurance industries. Chinese billionaire Jack Ma, who founded e-commerce giant Alibaba (BABA), owns a controlling stake in Hundsun. Shufeng Liu, CEO Hundsun Technologies, expects wealth management in China to expand to over 200 trillion in the next five years. Accordingly, the company will carry out its “Online” strategy to build Hundsun iBrian. The company will also expand its investment in blockchain technology, big data, artificial intelligence and other innovative technologies.
GRG Banking Equipment (002152.SZ)
GRG Banking Equipment’s forays into the blockchain space include:
- The introduction of products like ATMs which provide exchange services for digital currencies based on blockchain technology
- A management system for digital assets
- A VIP identity authentication system in the blockchain
- A hard wallet.
ZTE Corporation (000063.SZ)
ZTE Corp. has joined hands with Alibaba (BABA), China Unicom and few others to create a blockchain framework for the Internet of Things (IoT). The group had approached the International Telecommunication Union, with their detailed framework – as a decentralized service platform. A few months ago, the company also announced a smartphone called Sugar S11 Blockchain Creation Edition, for mining cryptocurrency.
Shenzhen Forms Syntron Information (300468.SZ)
Together with IBM, the company is applying blockchain to develop cross-border financial technology applications. The company is also promoting breakthrough and innovation in the banking and financial services space.
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