China Reportedly Halts IPOs and Share Sales: Is the AI Trade Cracking?

China’s securities regulator, the CSRC, reportedly directed banks to suspend initial public offerings and large share sales, using informal window guidance, and large sales by existing shareholders are also paused until conditions stabilize. The CSI 300 benchmark dropped 8.5% in October, its weakest month in more than a decade, while IPO activity in 2026 had already exceeded 292 billion yuan ($44 billion), the largest amount since 2023. On Monday, authorities cut the relending rate for share buybacks to 1% from 1.25%; on Tuesday the CSI 300 ended down 0.2% and the Star 50 tech index fell 3.8%. The CSRC did not immediately respond to a request for comment.