Beijing freezes IPOs and slashes buyback rates to stem China’s equity slide
Chinese regulators have suspended initial public offerings and large share sales to stabilize a market that suffered its worst monthly drop in over a decade. The China Securities Regulatory Commission issued informal 'window guidance' to banks, pausing listings until markets recover. This move follows an 8.5% decline in the CSI 300 index in October, marking its worst performance since 2016. Concurrently, the People's Bank of China cut the relending rate for share buybacks to 1% from 1.25% and launched swap operations to inject liquidity. These measures aim to reverse a prolonged downturn driven by weak consumption, property sector issues, and skepticism regarding AI investments. While the CSI 300 is down 15% this year, the S&P 500 has gained 10%. Analysts suggest these interventions may provide short-term support but lack the structural fixes needed for a lasting recovery.