An 8.5% October loss in China’s CSI300 Index, its weakest monthly result in more than 10 years, preceded a Financial Times report that the country’s securities regulator was restricting IPOs and large share sales.
The Financial Times cited three people familiar with the discussions. It said the China Securities Regulatory Commission (CSRC) conveyed informal guidance to investment banks in recent days and that large sales by existing shareholders were suspended until markets recover. Reuters said it could not immediately verify the account.
Chinese regulators rolled out separate stock-support measures on Nov. 2, including swap operations and an upgrade to a lending facility for share buybacks. The measures followed October’s decline in the blue-chip index.
