FT: Chinese authorities call for suspension of listings until markets recover

The China Securities Regulatory Commission (CSRC) has instructed investment banks to temporarily halt Initial Public Offerings (IPOs) and has suspended large-scale share sales by existing shareholders until markets recover, The Financial Times (FT) reported yesterday, citing anonymous sources, Reuters reports, via Agerpres.

In recent days, CSRC officials have held meetings with bankers and presented "informal administrative guidance." Furthermore, large-scale share sales by existing shareholders have been temporarily suspended pending a market recovery, the FT noted.

Representatives for the financial regulatory body did not respond to requests from Reuters for comment.

In October, China's CSI 300 stock index fell by 8.5%-its worst monthly performance in over a decade. Persistent weakness in the world's second-largest economy-exacerbated by fragile consumer spending, a prolonged real estate crisis, and concerns regarding the sustainability of AI investments-has severely dented investor confidence.

• Measures to stabilize capital markets

On Monday, authorities in Beijing announced measures aimed at stabilizing capital markets, including currency swap operations designed to facilitate share buybacks by listed companies. Yesterday, shares in technology companies continued to decline, as investors deemed the support measures insufficient. The CSI300 and Shanghai Composite indices both fell by more than 1% yesterday.

• Chinese economic growth - slightly above expectations

China, the world's second-largest economy, recorded growth slightly above expectations in the third quarter of 2026, according to Reuters.

Between July and September 2026, China's GDP grew by 4.5% year-on-year, as reported last month by the National Bureau of Statistics (NBS). This figure exceeds analysts' estimates, who had projected an expansion of 4.4%. In the second quarter, China's economic growth stood at 4.3%.

Beijing officials have set a growth target of between 4.5% and 5% for this year.

China-which has made exports a pillar of its economic model-still relies heavily on foreign trade to fuel its growth, at a time when a prolonged downturn in the real estate sector and weak consumption continue to weigh on the economy. Despite growth exceeding forecasts, the performance of the Chinese economy remains uneven, with an export boom contrasting with subdued domestic demand. "Economic growth remains subdued in September," noted Zhiwei Zhang, chief economist at the Hong Kong-based asset management firm Pinpoint, adding: "Retail sales have recovered slightly. China's GDP has rebounded, posting a 4.5% year-on-year increase. The cumulative growth rate for the first nine months of 2026 stood at 4.6%-still above the lower bound of the growth target-which may lead authorities to refrain from making significant policy adjustments in the fourth quarter, as they remain on track to meet the 2026 objective."

Analysts expect China's economic growth to slow to 4.5% this year, down from 5% last year, and to reach 4.4% in 2027.