THE Shenzhen Stock Exchange said Tuesday it would punish companies that speculate on blockchain technology and mislead investors, following steep gains in share prices of more than a dozen companies.

The exchange said it had taken supervision measures on 17 companies, including share trade suspensions to review the causes for unusual share price movements, clarification on companies’ involvement in blockchain technology and potential impacts on their bottom lines.

The exchange’s statement, published on its official Wechat account, did not name the companies.

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.

Blockchain technology underpins bitcoin and other digital currencies that have surged in value in recent months, raising fears of a price bubble.

Regulators have taken a series of steps to clamp down on financial risks associated with virtual currency trades. A central bank official said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services.

Several companies have issued clarifications on their roles in blockchain technology. Shanghai U9 Game said its core business does not involve blockchain technology. Earlier this week, Sichuan Shuangma Cement, Shenzhen Kaifa Technology and a few others made similar announcements. (SD-Agencies)