Chinese securities authorities have instructed investment banks to suspend initial public offering (IPO) underwriting, the Financial Times (FT) reported on November 3, local time.

Citing three sources, the FT reported that the China Securities Regulatory Commission (CSRC) held meetings with investment banks over the past few days, issuing unofficial guidelines, so-called "window guidance," to revitalize the sluggish stock market.

Large-scale share sales by existing shareholders have also been temporarily suspended until the market recovers.

This measure comes after China's benchmark CSI 300 Index plummeted 8.5% in October, marking its worst monthly performance in about a decade.

While Chinese authorities unveiled market stabilization measures on November 2, including expanding swap operations and improving loan facilities for share buybacks, the CSI 300 Index closed down 0.2% and the tech-heavy STAR Market 50 Index dropped 3.8% on November 3.

According to Bloomberg News, China's IPO volume this year has exceeded 292 billion yuan (approximately 58.7 trillion won), the highest level since 2023.

Flash memory maker Yangtze Memory Technologies Corp (YMTC) is also among the companies whose expected listings this year remain unrealized.

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