China regulator tells banks to pause IPOs, FT reports
China's securities regulator has informally instructed investment banks to pause initial public offerings, according to the Financial Times. The move is aimed at bolstering struggling markets, the newspaper reported, citing three sources with knowledge of the discussions.
China's securities regulator has informally instructed investment banks to pause initial public offerings (IPOs) in a bid to bolster struggling markets, the Financial Times reported on Tuesday, citing three people with knowledge of the discussions.
The newspaper said the regulator held meetings with investment banks over the past few days and gave informal instructions about pausing share listings and sales, according to the sources.
The move comes as Chinese markets have faced significant headwinds, with the FT reporting that the regulator is seeking to shore up investor confidence and stem further declines. The informal instructions were described as part of broader efforts to stabilise the market environment.
It remains unclear how long the pause will last or which specific sectors or companies are affected. The Financial Times noted that the regulator did not issue a formal public statement on the matter, and the instructions were conveyed verbally during the meetings.
The report did not identify the investment banks involved or provide further details on the scope of the suspension. Chinese authorities have previously taken steps to slow the pace of new listings during periods of market volatility.