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Several listed companies have been suspected of speculating on blockchain technology, the Xinhua News Agency reported on Monday.  

Over 500 of China's 3,000-strong listed firms said they are legitimately connected to blockchain technology, but only 40 can substantiate their claims with full disclosure and concrete business, Xinhua reported. 

Warning of rising pressure on the behalf of regulators, the report comes at a time when listed firms have claimed they use blockchain technology for their business. 

The capital market has witnessed multiple blockchain-related statements from listed companies, according to media reports.

It is an absurd level of discrepancy given that a major function of the blockchain technology, essentially a public electronic ledger, is about faithfulness, analysts said.

Blockchain technology refers to a digital database with information that can be simultaneously used and shared within a large decentralized network.

Xinhua reported that while Chinese regulators have spent great efforts in removing frauds centered on illegal digital currencies, pyramid schemes operating under the disguise of blockchain technology have increased. 

"I advised a senior citizen to stay away from any blockchain purchases," an industry observer said, when asked whether goods bought on blockchain are authentic.

Dong Shaopeng, an adviser for the China Securities Regulatory Commission, told the Global Times on Monday that companies making such claims will need to clarify themselves and their businesses.

Companies could face reprimands from the stock exchange, fines, and barred from market access for those whose statements are found to be untrue, Dong said.