Informal instructions to investment banks
Citing three people familiar with the discussions, the Financial Times said the China Securities Regulatory Commission (CSRC) delivered the IPO instructions through meetings with several investment banks in recent days. The directions took the form of informal regulatory instructions known as window guidance.
Reuters, which cited the Financial Times report, said it had not independently verified it. Chinese financial authorities had not responded to Reuters' requests for comment.
The reported pause comes in a year when IPO financing in China had exceeded 292 billion yuan by early November, the highest level since 2023, according to reports cited by ChainCatcher.
Losses across the market
October's decline extended a longer retreat in Chinese shares. On October 30, 2026, the CSI 300 completed its 12th consecutive losing week, a record stretching back to the index's creation in 2005. It lost about 15% during those 12 weeks, according to market data reported by RTHK, citing Reuters and Xinhua.
The weakness has coincided with slowing economic growth, subdued domestic consumption, a prolonged debt crisis in the property sector and selling in technology shares, all of which have weighed on investor sentiment.
Growth-oriented stocks suffered particularly sharp losses. The ChiNext Index, which tracks growth-oriented companies listed in Shenzhen, dropped 23.02% in October, its largest monthly fall since February 2016, according to an October 30 market close report from Tiger Brokers. Press estimates cited in market coverage put the STAR 50 index's decline from its summer 2026 peak at about 40% by late October. The index of Shanghai-listed technology and chip companies lost roughly $480 billion in market value.
The Shanghai Composite ended October 30 at 3,599.02 points, down 1.44% for the day, the Tiger Brokers report said. It was the index's first closing level below 3,600 since early August 2025.
The CSI 300 also lagged the broader emerging-market benchmark over the preceding year. Data compiled by Briefing Lens showed a decline of about 13.5% for the CSI 300 in the 12 months through the end of October, compared with a gain of about 12.5% for the MSCI Emerging Markets index.
Support measures fail to stop Tuesday's selling
Authorities introduced capital-market support measures on Monday, November 2, including swap operations and broader lending facilities for listed companies buying back shares. According to reports cited by ChainCatcher, the CSRC, the People's Bank of China and the National Financial Regulatory Administration met with securities firms and fund companies that day to discuss stabilizing the market. The steps included expanding swap operations and lowering the share-buyback relending rate from 1.25% to 1%.
State-backed investors had also been buying shares during the CSI 300's losing streak. Press estimates cited in market coverage put purchases by these investors, often called the "national team," at up to $25.5 billion.
Selling nevertheless continued on Tuesday, November 3, with artificial intelligence-related shares leading the retreat as investors viewed government support as inadequate. Both the CSI 300 and Shanghai Composite were down more than 1% early in the session. By midday, the CSI 300's loss had narrowed to 0.1%, while the Shanghai Composite was down 0.7%.
