FT “China suspends IPOs and major shareholder sales due to stock market downturn”

The Financial Times (FT) reported on the 3rd (local time) that China's securities authorities ordered investment banks to stop hosting initial public offerings (IPOs).

Citing three sources, the FT reported that China's Securities Regulatory Commission (SCSC) held a meeting with investment banks in recent days and issued so-called 'window guidance', an unofficial guideline, to revitalize the sluggish stock market.

Large-scale stake sales by existing shareholders were also temporarily suspended until the market recovered.

This measure came after China's leading index, the CSI300 index, plunged 8.5% in October, posting its worst monthly performance in more than a decade.

The Chinese authorities announced stock market stabilization policies on the 2nd, such as expanding swap operations and improving the loan system for stock purchases, but on the 3rd, the CSI300 index closed down 0.2%, and the 'STAR 50' index, which focuses on technology stocks, closed down 3.8%.

According to Bloomberg News, the size of China's IPOs this year exceeded 292 billion yuan (about 58.7 trillion won), the highest level since 2023.

Flash memory company Yangtze Memory (YMTC) was also expected to be listed this year, but remains one of the companies that has not yet been listed.