China’s growing interest in blockchain technology is also spreading among companies listed on regulated markets.
Securities Daily has published a report highlighting how Chinese listed companies are spending the millions of dollars they have allocated to blockchain research and development; the contribution is based on the testimony of 23 Chinese companies that have started working in the sector since 2016. The figures suggest that companies spend an average of 20% of their annual revenues for these purposes, and that the majority of Financial Peak these funds are spent on the development of government projects.
The paper found that Yuanguang Software, a provider of enterprise programs, has increased its research spending by approximately $24.3 million since 2016. Other companies, such as Xinchen Technology, have invested significant amounts in blockchain-related government projects in an effort to strengthen the country’s financial sector.
Chen Xiaohua, chairman of the Blockchain Professional Committee of the China Mobile Communications Federation, commented on the increased interest in the blockchain among Chinese companies:
„On the one hand, listed companies can use blockchain technology to improve their products. Awareness and brand promotion, on the other hand, use blockchain technology to improve their technology level, break the structural constraints of the traditional Internet model and create an in-depth layout of the digital economy“.
According to a paper entitled „2020 Blockchain Industry Development“, Chinese companies have applied for 4,435 blockchain patents, more than half of all blockchain applications worldwide. This surge in interest was probably a consequence of Chinese President Xi Jinping’s official endorsement of the technology.