Chinese IPOs suspended to stop stock market slide

[unhappycamper]

http://www.dw.com/en/chinese-ipos-suspended-to-stop-stock-market-slide/a-18562304

Efforts have been stepped up in China to stabilize the country's free-falling stock markets. Among other things, initial public offerings have been delayed and a stabilization fund has been set up.

Chinese IPOs suspended to stop stock market slide
05.07.2015

The official Xinhua news agency reported late on Saturday that 28 Chinese companies that were planning to issue initial public offerings of their stocks in the near future would now be delaying their IPOs due to the recent rapid fall in share prices.

The companies had been planning to launch their IPOs on the key Shanghai and Shenzhen stock markets, which have lost 30 percent of their value over the past three weeks, after reaching their peaks in mid-June. According to Xinhua, investors who had already subscribed to the IPOs would have their money refunded.

A report in the "Wall Street Journal" cited analysts who said the planned IPOs had been expected to attract as much as 4 trillion yuan (580 billion euros, $645 billion).

The US business newspaper reported that the decision came following a meeting of senior officials from China's State Council, its central bank, the securities regulatory agency and other financial authorities on Saturday. It wasn't immediately clear for how long the suspension of IPOs would be in effect, but previous bans have ranged from three months to more than a year.