Financial Times: Chinese regulators suspend IPOs and large-scale share sales to boost the sluggish stock market.

According to a Financial Times report, China’s Securities Regulatory Commission (CSRC) recently held meetings with investment banks and issued verbal guidance to banks and investment banks, requiring a suspension of corporate initial public offerings (IPOs). Large-scale share reductions by existing shareholders have also been temporarily halted until market stability is restored. Previously, Chinese regulators had already rolled out measures including restricting share reductions and encouraging stock buybacks. On Monday, the CSRC, the People’s Bank of China (PBC), and the State Administration of Financial Supervision also held meetings with securities firms and fund management companies to discuss stock market stabilization measures, such as cutting the re-lending rate for stock buybacks and share additions from 1.25% to 1% and expanding swap facility operations. The report noted that China’s IPO fundraising volume this year has exceeded 292 billion yuan, the highest level since 2023. A suspension of IPOs and large-scale share reductions could impact financing activities in China’s equity market. It should be noted that the relevant measures are currently based mainly on informal window guidance disclosed by insiders, and regulators have not yet officially confirmed them publicly.