Chinese regulators suspend IPOs and large-scale share offerings to stabilize markets

According to ME News, on November 3 (UTC+8), China’s Securities Regulatory Commission (CSRC) recently held meetings with investment banks and issued verbal guidance to banks and investment firms, requesting a temporary suspension of corporate initial public offerings (IPOs). Additionally, large-scale share sell-offs by existing shareholders have been temporarily halted until market stability is restored. Prior to this, Chinese regulators had already implemented measures such as restricting share sell-offs and encouraging stock buybacks. On Monday, the CSRC, the People’s Bank of China, and the National Financial Regulatory Administration held meetings with securities firms and fund companies to discuss measures for stabilizing the stock market, including lowering the refinancing rate for stock buybacks and增持 from 1.25% to 1%, and expanding swap facility operations. The report noted that China’s IPO fundraising volume this year has exceeded RMB 292 billion, the highest since 2023. Suspending IPOs and large-scale sell-offs could impact equity market financing activities in China. These measures are currently based on informal guidance disclosed by insiders; regulators have not yet officially confirmed them. (Source: ChainCatcher)