China freezes IPOs and big share sales in fresh push to steady stocks
China's securities watchdog has reportedly frozen new IPOs and large share sales, per the Financial Times. It's the latest in a run of stabilization moves after regulators huddled with brokerages and fund managers on Monday and sweetened buyback incentives.
The China Securities Regulatory Commission has reportedly pressed pause on initial public offerings and large share sales, the Financial Times reported Tuesday, citing people briefed on the decision. The idea is to stop the bleeding in a weak stock market. The CSRC has not publicly confirmed the move.
It isn't a lone maneuver. Last month the regulator rolled out guidelines that pushed faster share buybacks and asked investors to go easy on selling shares.
On Monday, three of China's financial heavyweights — the CSRC, the People's Bank of China and the National Financial Regulatory Administration — huddled with securities brokerage firms and fund management companies, according to the agencies. They explored ways to steady the stock markets. Then they adopted a set of measures.
Among them: the interest rate on their credit line for share buybacks drops by 0.25 percentage points, now at 1%. Swap transactions get a boost. Buybacks get extra encouragement.
The reported IPO freeze would be the bluntest tool in the stack so far, following the earlier guidelines. Regulators keep adding firepower as the market struggles.
TopicsChina Securities Regulatory Commission · People's Bank of China · National Financial Regulatory Administration · Financial Times
Source: breakingthenews.net
Written by Paparazzi with AI. Not financial advice.