China’s securities regulator told investment banks to halt IPOs, according to a report
China’s securities regulator reportedly told investment banks to pause initial public offerings and temporarily suspend large share sales by existing shareholders until markets recover, the Financial Times reported on Nov. 3, citing three sources with knowledge of the discussions. Reuters said it could not verify the report. The report follows an 8.5% October fall in the CSI300.
More context
The Financial Times reported on Nov. 3, citing three people familiar with the discussions, that the securities regulator had directed investment banks to halt IPOs and put major sales by existing shareholders on hold until markets recover. The China Securities Regulatory Commission gave informal “window guidance” after meetings with investment banks in recent days, the report said. Reuters was unable to independently confirm the account, and Chinese financial regulators did not immediately respond to a request for comment.
The reported move follows an 8.5% October decline in the blue-chip CSI300 Index. On Nov. 2, regulators announced measures to support the market, including swap operations and an upgraded lending facility for listed companies’ stock buybacks. The market struggled to rebound on Tuesday, with AI-related shares leading declines as investors judged the measures insufficient.
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Reporting
- The Straits Times — China regulator tells banks to pause IPOs: Report | The Straits Times
- Devdiscourse — China regulator tells banks to pause IPOs, FT reports
- Business Today Malaysia — China Regulator Reportedly Tells Banks To Pause IPOs Amid Market Selloff
Verifier’s note
The Straits Times, Devdiscourse, and BusinessToday all report that China’s securities regulator told banks to pause IPOs. The Straits Times and Devdiscourse attribute the claim to the Financial Times and note that Reuters could not verify it; these recent reports support the proposed event without independently confirming the underlying claim.