Chinese regulators have reportedly asked investment banks in private to pause new initial public offering applications and delay large-scale share sales, according to a Techub News brief citing market chatter. Reuters said it could not independently verify the claim. The report also pointed to a precedent from July 2015, when Beijing suspended IPOs and barred major shareholders from reducing holdings for six months. Market weakness has continued across Chinese equities, with the CSI 300 down 8.5% in October and the tech-heavy STAR 50 falling 3.81% on Nov. 3 Beijing time. The pressure has not been limited to China. In the U.S., the Nasdaq-100 fell more than 10% from its October peak as of Nov. 2 Eastern Time, putting the index in correction territory. Morgan Stanley separately warned that Chinese stocks could decline another 10% to 15%.
Chinese regulators have reportedly asked investment banks in private to suspend new IPO applications and delay large-scale share sales, according to Techub News. Reuters said it was unable to independently verify the report.
The note referenced an earlier intervention in July 2015, when Beijing suspended IPOs and banned major shareholders from cutting their stakes for six months.
Chinese equities have already been under pressure. The CSI 300 fell 8.5% in October, while the tech-heavy STAR 50 dropped 3.81% on Nov. 3 Beijing time.
The sell-off in AI-related stocks has also intensified. The Nasdaq-100 was down more than 10% from its October high as of Nov. 2 Eastern Time, placing the index in correction territory. Morgan Stanley warned that Chinese stocks could fall another 10% to 15%.
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