Financial Times: Chinese regulators suspend IPOs and large-scale sell-offs

According to the Financial Times, the China Securities Regulatory Commission recently held meetings with investment banks and issued verbal guidance to banks and investment banks, requesting a pause on initial public offerings (IPOs). In addition, large-scale stock reductions by existing shareholders have also been temporarily halted until the market stabilizes.

Previously, Chinese regulatory authorities had implemented measures to restrict reductions and encourage stock buybacks. On Monday, the China Securities Regulatory Commission, the People's Bank of China, and the National Financial Supervision and Administration held meetings with securities companies and fund companies to discuss measures to stabilize the stock market, including lowering the stock buyback re-lending rate from 1.25% to 1% and expanding swap convenience operations.

Reports indicate that the IPO financing scale in China has exceeded 292 billion yuan this year, the highest since 2023. If IPOs and large-scale reductions are paused, it may impact financing activities in China's equity market. The relevant measures are currently mainly based on informal window guidance disclosed by informed sources, and regulatory authorities have not officially confirmed them.