The China Securities Regulatory Commission, or CSRC, recently issued a letter approving five regional equity markets. They will include equity centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen. These and other regions received authorization to begin experimenting with a blockchain pilot in early July.

According to Beijing Local Financial Supervision and Administration, the next step for the CSRC is to guide Beijing Equity Trading Center to carry out the blockchain pilot. The trading center in Beijing has allegedly built a “relatively perfect infrastructure” for equity registration, custody, and transaction transfer. The administration notes that they have taken the lead in online equity registration custody and equity change of enterprises in China.

As of June 30, 2020, Beijing’s Equity Trading Center has served more than 1000 unlisted joint-stock companies in the city. They have been entrusted with equity for 9 commercial banks, including 1 rural commercial bank, 1 private bank, 1 direct selling bank and 6 rural banks. Their total share capital is more than 21 billion yuan, or roughly $3 million.

Beijing Equity Trading Center, together with Shenzhen Stock Exchange and other regional equity market operators, reportedly launched a regional equity market intermediary credit reference blockchain in late 2017.

As Cointelegraph reported previously, China’s Internet Finance Association said the country’s use of blockchain technology has maturated in recent years. Chinese experts also held a seminar to explore implementing blockchain in China’s new “social credit system.”