The Financial Times reported on Monday that two capital markets bankers with knowledge of the situation said that China’s stock regulator is planning to stop local companies in certain industries from listing on the country’s main stock exchanges.
The China Securities Regulatory Commission (CSRC) told bankers that it has given some industries, like food and beverage and COVID-19 testing companies, a “red light,” which means that they can’t get equity financing on the main exchanges in Shanghai and Shenzhen.
The regulator has also recognised a number of “yellow light” sectors, which include apparel and furniture companies, where listing requests would come under scrutiny if their growth relies heavily on debt for expansion, the report said.
