Huaqiangbei File photo: VCG

Some insiders in digital currency mining industry assured that the 355-meter skyscraper, the hub of electronic devices in the region, wobbled in Shenzhen expected no market impact over hardware and other electronic devices that are used for mining industry of digital currencies.

Video footage showed local residents in the city, one of the four tier-1 megacities in China, fleeing away scared, after the SEG Plaza, a nearby skyscraper, looked wobbling.

Some fears that the iconic building which has been a center of electronic product transactions in the region would create price fluctuation after business operations in the building were suspended after the wobbling.

The hard disk, graphics card and other products could see certain impact, because the building is an important business distribution center with the assembly of many electronic components, a businessperson said.

Shentu Qingchun, CEO of Shenzhen-based blockchain company BankLedger, told the Global Times on Wednesday that the situation is unlikely to generate an impact on the mining industry as well as the overall price of digital currencies. 

"Demands for mining equipment has remained lukewarm as prices of various digital currencies have taken a dive in recent days. Also, there are other supplies in Shenzhen near the building," Shentu said. 

He noted that reports on how the building's closure could create uncertainty for the supply of various chips and machines for mining and therefore leading to seismic industry impact is just "scoffing."

Another industry insider also confirmed with the Global Times on Wednesday that some merchants selling mining machines at the building have temporarily halted business. 

"But we should not exaggerate the influence," she added.

Completed in 2000 and located at the city's renowned Huaqiangbei Electronics Market, it stands 356 meters tall when the antenna height is included.

According to 2019 data, there were 220,000 employees and more than 40,000 companies within Huaqiangbei commercial area where the tower is located, mainly focusing on electronic components, smart wearable and services.

Despite the wobble, many businesses were still busy on the first to sixth floors of the building, with some of them pulling carts to make deliveries from inside, Jiemian News reported on Wednesday.

At present, only businesses and company staff are allowed to access to the building.

One mining machine seller told Jiemian reporter that she was not worried about the safety of SEG Plaza, although customers could not get in, her business would only be temporarily affected.

Entrusted by Shenzhen municipal housing and construction authorities, from 9 pm on Tuesday to 3 pm on Wednesday, a number of professional institutions carried out real-time monitoring of the vibrations, tilt and settlement of the building, and the monitoring data showed no abnormal conditions, media reports said. After research by provincial and municipal experts, it is believed that Shenzhen SEG Plaza was shaking up and down rather than swinging from side to side, and it was probably caused by a combination of several factors, including the wind and subway operation and temperature, the Paper reported on Wednesday, citing an unnamed source with the emergency management authorities.

There are two subway lines below the building. In addition, the temperature has increased in the last two days by up to eight degrees, which also had a great impact on the steel structure, the report said.

Meanwhile, the main structure of the building is safe, after the expert site survey.

The report is only a preliminary finding and the expert panel is still investigating further, the source said. But experts suggest that a damper system should be considered as the next step to improve wind and shock resistance.

The reopening time of the building is still unclear as further investigation of the structure is underway.