PHOTO: CNN
Now playing
02:08
What is blockchain?
A Facebook employee walks by a sign displaying the "like" sign at Facebook
PHOTO: Josh Edelson/AFP/Getty Images
A Facebook employee walks by a sign displaying the "like" sign at Facebook's corporate headquarters campus in Menlo Park, California, on October 23, 2019. (Photo by Josh Edelson / AFP) (Photo by JOSH EDELSON/AFP via Getty Images)
Now playing
02:36
Facebook to restore news in Australia
Now playing
02:57
Why Microsoft backs Australia's pay for news proposal
MADISON, WI - NOVEMBER 05:  U.S. President Barack Obama and rocker Bruce Springsteen wave to a crowd of 18,000 people during a rally on the last day of campaigning in the general election November 5, 2012 in Madison, Wisconsin. Obama and his opponent, Republican presidential nominee and former Massachusetts Gov. Mitt Romney are stumping from one
PHOTO: Chip Somodevilla/Getty Images
MADISON, WI - NOVEMBER 05: U.S. President Barack Obama and rocker Bruce Springsteen wave to a crowd of 18,000 people during a rally on the last day of campaigning in the general election November 5, 2012 in Madison, Wisconsin. Obama and his opponent, Republican presidential nominee and former Massachusetts Gov. Mitt Romney are stumping from one 'swing state' to the next in a last-minute rush to persuade undecided voters. (Photo by Chip Somodevilla/Getty Images)
Now playing
01:26
Barack Obama and Bruce Springsteen team up for new podcast
Find Solution AI facial expression reading software mapping facial muscles to assess emotion
PHOTO: Shutterstock/Find Solution AI
Find Solution AI facial expression reading software mapping facial muscles to assess emotion
Now playing
03:54
How AI that reads emotions is changing the online classroom
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
PHOTO: Olivier Douliery/AFP/Getty Images
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
Now playing
01:25
Parler's website is back online
screengrab singapore contact tracing app
PHOTO: Government Technology Agency of Singapore
screengrab singapore contact tracing app
Now playing
03:07
How Singapore's contact tracing technology undermines citizen's trust
PHOTO: Boston Dynamics
Now playing
01:20
Spot the robot's new arm lets it jump rope (and do serious stuff)
Detail of a mans hand scrolling through Netflix on an Apple iPad Pro, taken on March 6, 2020. (Photo by Phil Barker/Future Publishing via Getty Images)
PHOTO: Future Publishing via Getty Imag
Detail of a mans hand scrolling through Netflix on an Apple iPad Pro, taken on March 6, 2020. (Photo by Phil Barker/Future Publishing via Getty Images)
Now playing
04:27
2020 was supposed to be the year of streaming. Instead, it was the year of Netflix
PHOTO: WCCO
Now playing
01:26
Man donates Nintendo Switches to kids in need with GameStop stock
NEW YORK, NEW YORK - JANUARY 27: GameStop store signage is seen on January 27, 2021 in New York City. Stock shares of videogame retailer GameStop Corp has increased 700% in the past two weeks due to amateur investors. (Photo by Michael M. Santiago/Getty Images)
PHOTO: Michael M. Santiago/Getty Images
NEW YORK, NEW YORK - JANUARY 27: GameStop store signage is seen on January 27, 2021 in New York City. Stock shares of videogame retailer GameStop Corp has increased 700% in the past two weeks due to amateur investors. (Photo by Michael M. Santiago/Getty Images)
Now playing
03:16
GameStop mania shakes up Wall Street
SAN ANSELMO, CALIFORNIA - JANUARY 08: The suspended Twitter account of U.S. President Donald Trump appears on an iPhone screen on January 08, 2021 in San Anselmo, California. Citing the risk of further incitement of violence following an attempted insurrection on Wednesday, Twitter permanently suspended President Donald Trump
PHOTO: Justin Sullivan/Getty Images North America/Getty Images
SAN ANSELMO, CALIFORNIA - JANUARY 08: The suspended Twitter account of U.S. President Donald Trump appears on an iPhone screen on January 08, 2021 in San Anselmo, California. Citing the risk of further incitement of violence following an attempted insurrection on Wednesday, Twitter permanently suspended President Donald Trump's account. (Photo Illustration by Justin Sullivan/Getty Images)
Now playing
04:29
What impact could deplatforming Donald Trump have?
screengrab US social media
PHOTO: Getty Images
screengrab US social media
Now playing
04:35
Tech companies ban Trump, but not other problematic leaders
PHOTO: Samsung
Now playing
01:53
See Samsung's new Galaxy S21 lineup
PHOTO: LG Display
Now playing
01:10
See LG's transparent TV
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
PHOTO: Drew Angerer/Getty Images North America/Getty Images
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
Now playing
03:25
Google employee on unionizing: Google can't fire us all
(CNN Business) —  

The Chinese government is trying to dampen demand for local tech stocks after President Xi Jinping personally endorsed blockchain technology, sending their value soaring.

Stocks of almost 200 companies that invest in blockchain technology jumped around 8% on Monday, according to an index compiled by East Money Information, with some very quickly hitting their daily limit of a 10% increase.

The spike came three days after Xi called for faster development of the blockchain sector, according to Chinese state-run news agency Xinhua.

“(Xi) stressed the importance of stepping up research on the standardization of blockchain to increase China’s influence and rule-making power in the global arena,” Xinhua said.

According to two inquiries sent by the Shanghai Stock Exchange and seen by CNN Business, companies involved in blockchain services were asked to better explain their businesses and keep their official statements factual and simple to avoid hype.

The Chinese government is also trying to manage investor enthusiasm.

A commentary published by the Communist Party’s official mouthpiece, the People’s Daily, called for Chinese market traders to restrain themselves.

“Of course the future of blockchain is here but we must stay rational,” the commentary published Monday said. “Blockchain innovation does not mean speculating virtual currencies … We must also see that the blockchain is still in the early stages of development.”

The stocks in East Money Information’s blockchain index have been paring back their gains since Monday. The index declined nearly 3% on Wednesday.

For more than a year, Beijing has been pushing to increase innovation and self-reliance in the country’s technology sector as it faces growing competition with the United States.

On October 15, China launched its first nationwide blockchain-based service network, or BSN, which Xinhua said would provide services for the “development of smart cities and the digital economy.”

Blockchain is the latest technology trend to have spread to across almost every industry globally.

Put simply, blockchain is a public ledger of transactions or promises stored on multiple computers. Changes can’t be made to the data, making the system difficult, if not impossible, to hack.

Developed in 2008, it has frequently been used in the sale of cryptocurrencies, another area in which the Chinese government is taking a growing interest.

Blockchain has already been used in China for other, less democratic purposes.

Following Xi’s speech, the Chinese Communist Party’s top decision making body, the Central Political Bureau, released a statement announcing the launch of a blockchain where cadres could publicly and permanently express their loyalty to the party.

It was called “Chain of the Original Heart.”

“Let us record together and witness together. What are you waiting for?” the statement from the CCP said.

CNN’s Isaac Yee contributed to this report.