China regulator reportedly tells banks to pause IPOs
FXI•China's securities regulator has reportedly told investment banks to pause IPOs and temporarily suspended large share sales by existing shareholders until markets recover. The report cited three people familiar with the discussions; the report could not be immediately verified.
1. Reported IPO pause
China's securities regulator held meetings with investment banks in recent days and gave informal “window guidance” to pause initial public offerings, the report said. Large sales by existing shareholders were also temporarily suspended until markets recover.
2. Market pressure
The reported move follows an 8.5% October drop in the CSI300, its worst monthly performance in more than a decade. Chinese regulators introduced measures on Monday, including swap operations and an upgraded lending facility for listed-company stock buybacks, but the CSI300 and Shanghai Composite both fell more than 1% in early trade on Tuesday before paring losses by midday.
