Beijing to rein in pace of fund raising amid Chinese stock market rout
Regulator to reduce the number and size of new initial public offerings amid growing downward pressure on stocks and claims of manipulation
Beijing has reined in the pace of raising funds in the mainland's initial public offering market after Shanghai's benchmark stock index posted its worst three-week performance in almost a quarter of a century.
The China Securities Regulatory Commission yesterday said it would approve fewer applications for mainland listings amid growing downward pressure on the stock markets, after a slew of stimulus measures from Beijing failed to shake shares out of a prolonged funk.
Considering the recent market conditions, [we] will reduce the number of IPOs
The Shanghai Composite Index plunged as much as 7.2 per cent at one stage yesterday morning before closing down 5.77 per cent, or 225.85 points, at 3,686.92 - its lowest close since March.
The CSRC also said it would investigate market manipulation and short-selling activities, after the China Financial Futures Exchange, which hosts and oversees trading of stock index futures, said it would closely monitor and probe illegal trading activities and premeditated short-selling.
"Considering the recent market conditions, the CSRC will reduce the number of IPOs and the size of fund raising," CSRC spokesman Zhang Xiaojun said during a weekly briefing after the market closed.
There were now 10 companies in the pipeline for IPOs early this month, he said, with the total amount of funds raised to be less than in June.
