Chinese entrepreneurs registered 714 blockchain firms in China this month, resulting in a total of 26,089 such companies operating in the country. The numbers were provided by cryptocurrency firm LongHash on January 26th. As per the data the total number of Blockchain firms registered in china is 79,556, while 57,257 Chinese blockchain firms also lost their legal status or had their licenses revoked.
While it remains to be seen whether funding remains stable for the remaining 11 months of 2020, if the average monthly rate of founded blockchain firms remains the same as in January, China would see 8,565 new blockchain-related companies this year.
28.5%, of blockchain firms in China are in the province of Guangdong, which is home to the major city of Shenzhen and shares a border with Hong Kong. Both of these cities are known for their tech hubs and initiatives to apply blockchain in civil administration and other aspects of municipal development.
The data also reveals that over 46% of Chinese blockchain firms have no more than 5,000 yuan of registered capital, which is equivalent to just under $721. Furthermore, 8.32% of firms have between $721 and $1,442, 26% have between $1,442 and $7,208, while 9.17% of firms have $7,208 or more.
This apparent lack of capital in the Chinese blockchain space is in line with the results of a recent joint study by China’s government-run financial information and media firm Xinhua and financial data platform Rhino Data. The study states that investment and financing deals in the Chinese blockchain space dropped over 40% in 2019.