The China Securities Regulatory Commission (CSRC) has directed banks to halt initial public offerings (IPOs) and major share sales, according to the Financial Times, referencing sources.
As per the sources, the regulator conducted discussions with investment banks recently and provided informal instructions, termed “window guidance”, to halt IPOs.
The CSRC also mandated a suspension of significant share sales by shareholders until the stock market improves, the newspaper reports. Additionally, in October, the Chinese regulator allegedly prompted firms to speed up share repurchases and called on investors to restrict the sale of securities.
The Chinese stock market has continued to experience a sell-off since summer, fueled by macroeconomic issues and increasing doubts about artificial intelligence investments, according to the FT.
Moreover, as Beijing has increased its scrutiny on offshore trusts, certain billionaires have had to liquidate shares to meet tax obligations, according to the newspaper. October witnessed the most significant decline in more than ten years for the mainland China’s main stock market index CSI 300, which dropped by 8.5% throughout the month.
source: ft.com
