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- The China Securities Regulatory Commission has taken an enormous step to integrate the pilot test with equity trading centers.
- The regulatory body will assist the Beijing Trading Center along with the four centers in Shanghai, Jiangsu, Zhejiang, and Shenzhen.
- Xiao Gang has stated that research into decentralized finance and new technologies is the need of the hour to promote data connectivity.
In a letter approving five equity markets to start blockchain pilot testing, the China Securities Regulatory Commission has taken an enormous step to integrate the pilot test with equity trading centers. The regulatory body will assist the Beijing Trading Center along with the four centers in Shanghai, Jiangsu, Zhejiang, and Shenzhen. The importance of a digital economy is already stressed upon by the former chairman of the CSRC. Xiao Gang has stated that research into decentralized finance and new technologies is the need of the hour to promote data connectivity.
Benefits of Blockchain Technology Integration
The Beijing Trading Center has built the perfect infrastructure for equity registration, transfer, and custody. The total share capital of the trading center peaked at 21 billion Yuan on 30th June 2020. The pilot technology will verify transactions without the help of third-party entities. It will provide a sense of security to all equity investors.
Moreover, the transactions that will take place here will be transparent, and it will eliminate the risk of duplicate entry or fraud. The blockchain technology is poised to bring in the smart contract culture within the trading ecosystem in the country.
Potential of blockchain technology in equity markets
The blockchain pilot project will further enhance the IPO issuance process. Furthermore, it will reduce counterparty risk and loss of funds at the hands of miscreants.
The results of these pilot tests will enable regulators to assess the potential of such technology. Moreover, the Asian equity markets are showing tremendous growth prospects. The latest trial of blockchain technology, they are bound to gain an advantage among the international players.
