Chinese regulators halt IPOs and large-scale share sales to stabilize the market

Huo Xing Finance reports that on November 3, according to the Financial Times, China’s Securities Regulatory Commission (CSRC) recently held meetings with investment banks and issued verbal guidance to banks and investment firms, requesting a temporary halt to corporate initial public offerings (IPOs). Additionally, large-scale share sell-offs by existing shareholders have also been temporarily suspended until market stability is restored. Previously, 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 increased purchases from 1.25% to 1%, and expanding swap facility operations. The report notes 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. It should be noted that these measures are currently based on informal guidance disclosed by insiders, and regulators have not yet officially confirmed them publicly.