Shenzhen's stock exchange is preparing to launch Blockchain-powered trades

Chinese exchanges are becoming increasingly blockchain-friendly.

Shenzhen's stock exchange, one of the biggest exchanges in the Asia-Pacific region, announced that they have co-launched a blockchain solution for trading with unlisted private-sector companies.

The report also indicated that the platform will be co-piloted with the Beijing Fourth Board Market, or BFBM - the city's regional equity market.

Both groups expect to "Reduce the cost of information asymmetry, standardize corporate equity management, and better play the function of market equity financing" by integrating blockchain technology.

"We expect to get credibility, to reduce the cost of information asymmetry, standardize corporate equity management, and better leverage the function of market equity financing to lay a solid foundation for non-listed companies' share transfer transactions. Also, it expects to implement equity financing and the future to a higher level of capital market."

On September 30, the Shanghai Stock Exchange also announced their intention to conduct a pilot for a blockchain-backed trading platform jointly with the China Securities Regulatory Commission.

This news came shortly after announcements of "Significant progress" with regard to building a blockchain trading network.

Shanghai's exchange added that it had built enough infrastructure to achieve on-chain functionality under the nation's financial watchdog.

Back in July, the China Securities Regulatory Commission issued a letter approving five regional blockchain-powered equity markets.

They included equity centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen.