Chinese regulators have reportedly told banks to pause company listings and large share sales as the CSI 300 slides. The index fell 8.5% in October, and earlier support measures have yet to restore investor confidence.
Chinese regulators have told banks to hold fire on company listings and large share sales to bolster the country's struggling stock markets, the Financial Times reported. The paper cites three people with knowledge of the discussions.
The pause follows a sharp decline in mainland equities. The CSI 300 fell 8.5% in October, its worst monthly performance since early 2016.
CSI 300 extends its losing streak
The benchmark has lost 15% over 12 consecutive weeks, the longest losing streak on record. The FT adds that the index is down about 14% this year.
Technology shares have also fallen. The STAR 50 index has dropped around 40% from its June peak, erasing approximately $480 billion in market value. Coinpedia ties the slide to doubts over returns on AI spending, weak domestic consumption and stress in the property sector.
Beijing's support measures fail to lift stocks
Meanwhile, the People's Bank of China cut the rate on its share-buyback relending programme from 1.25% to 1% and announced another round of swap operations that could provide more than 100 billion yuan in liquidity. The Shanghai Composite initially rose 1.1% on Monday, November 2, but reversed in early trading on Tuesday.
Market reaction on Tuesday was muted, with the CSI 300 down 0.7% and the STAR 50 falling 4.6%. Thomas Mathews, Asia-Pacific head of markets at Capital Economics, said the moves were "unlikely to generate a lasting turnaround" unless paired with something that addresses structural challenges more directly, according to the FT.
Listing pause threatens a dealmaking revival
The halt could slow a recovery in equity issuance. IPO deal volume this year has reached more than Rmb292bn ($44bn), the highest since 2023, according to Bloomberg data cited by the FT.
Sources: Coinpedia, Financial Times
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