China regulator tells banks to pause IPOs, FT reports

Nov 3 (Reuters) – China’s securities regulator has told investment banks to pause initial public offerings and has suspended large share sales by existing shareholders until markets recover, The Financial Times reported on Tuesday, citing three people with knowledge of the discussions. 

The China Securities Regulatory Commission held meetings with investment banks and gave informal “window guidance” over the past few days, the report added.

Reuters could not immediately verify the report.

The move follows a sharp selloff that saw the blue-chip CSI300 Index slumping 8.5% in October, its worst monthly performance in more than a decade.

Chinese regulators rolled out a handful of measures on Monday, from conducting swap operations to upgrading a lending facility for stock buybacks by listed companies, as part of efforts to stabilise struggling capital markets. 

(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Jacqueline Wong)

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