The ‘Blockchain 50 Index’, which was launched in late December by Shenzhen Stock Exchange (SSE), the stock exchange of China’s technology capital Shenzhen and one of two stock exchanges operating independently in mainland China to track the performance of 50 blockchain firms, continued with its bullish performance.
The index saw seven days of strong performance following the debut, which were interrupted by one day of decline.
This upbeat performance can be ascribed to the ‘indexing’ of the Chinese tech sector.
The index gives investors initial filtering of experimental blockchain firms to select from. It also helps legitimize the blockchain sector and sends a signal to venture investors that future exits are possible.
The stocks of 50 companies that are listed on the SSE are ranked based on their average daily market value over the past six months. They range from software companies, such as e-commerce, Fintech, software-as-a-service (SaaS), logistics, and insurance, to hardware companies, such as mining and home appliances.
In mid-October, Nasdaq listed the AI-powered CIX100 Index that was created by crypto data provider Cryptoindex. It also listed in September a blockchain decentralized finance index called Defix.