As blockchain companies are gaining steam, the Shenzhen Stock Exchange (SZSE) has released a new index tracking the performance of 50 companies working in the sector.

Through ‘Blockchain 50 Index’, investors can invest in the index to explore exposure to the firms devoting on the decade-old technology.

The index is capitalization-weighted as the index comprised of the 50 companies’ shares that have been chosen contemplating their ‘average daily market value’ in the latest six-month period and based on the total market capitalization of the outstanding shares.

Prior to the establishing the index, the SSE ensured that the firms involved are actually using the technology instead of relying only on the fame and the propaganda.

As per the sources of South China Morning Post, back in 2018, SSE had also warned that it would penalize the some companies, as such companies have been in the news of investing in blockchain-oriented businesses, and even changing their names to claim blockchain know-how, with the aim of hyping up their share price

But of-late, some analysts began emphasizing on the Chinese Prime Minister Xi Jingping’s constructive statements on the blockchain technology in the recent past, divulged the Chinese government is expecting a wave of new investment into Chinese blockchain companies. He called for China to boost its adoption of blockchain, and to increase its use within China’s government, industry, and technology sectors. Consequently, the statement seemed to have stimulated the constructive speculation amongst crypto market participants

Some big banking giants like, HSBC stated that deploying blockchain technology in the yuan cases expedites the transaction speed and likely to penetrate a major market. Chinese trade accounts for approximately about 1.2 million letters of credit worth $750 billion last year, as per SWIFT.

Quite a few analysts have pointed out that President Xi’s comments referred specifically to blockchain technology - there was no mention of Chinese government interest in public blockchains like Bitcoin. This implies that the recent developments were primarily driven by trader speculation as opposed to fundamentally led investors.

For now, with this latest development, the index tracks the performance of major firms such as, Ping An Bank, S.F. Holding, Visual China Group, and Midea Group, there have been quite a few companies driven by mainstreams of the blockchain industry like technology & services, and hardware equipment.