SHANGHAI (Reuters) – China’s blockchain-related companies extended their bullish run on Friday, as punters brushed aside concerns raised by regulators about the rationality of stock price surges this week.
Blockchain mania continued to propel the shares of a dozen companies which recently disclosed their involvement in cryptocurrency technology, even though some admitted their investments in the technology were still at an early stage.
A growing number of Chinese firms – ranging from packaging firms to gaming companies – have publicly linked their businesses with blockchain to capitalize on rapidly growing investor interest globally for the technology, the backbone of bitcoin and other digital currencies.
Chinese regulators are taking unprecedented steps to contain financial risks – Beijing has banned initial coin offerings, shut down local cryptocurrency trading exchanges and limited bitcoin mining – but speculators are not deterred.
Shares of Cashway Technology Co Ltd (603106.SS) soared for the second day on Friday, even after it clarified that it had merely hired two young graduates majoring in encryption algorithm.
Client Service International Inc (300663.SZ) jumped the maximum 10 percent for the third straight day, although the software maker flagged risks to investors, saying it was still “exploring” blockchain technology.
Most of these companies had seen their shares steadily falling since mid-2015 to multi-year lows before this…