[SHANGHAI] The Securities Association of China denied a rumour that it issued a circular saying preparations are underway for resumption of initial public offerings, China.com.cn reported, citing an unidentified person from the association.
The rumour was spread via Wechat, China's most-popular messaging service, and the association is probing where it originated, according to the report. Two calls to the association's office in Beijing went unanswered.
The rumour helped push down the Chinese stock market on Friday, with the Shanghai Composite Index falling 1.6 per cent and extending the decline from its June high to 40 per cent. China suspended IPOs in early July as part of measures to shore up its stock market, which has lost US$5 trillion of value in three months.
"China is unlikely to resume new share offerings this year given the government's aim to stabilize the stock market," said Sinolink Securities Co's Shanghai-based analyst Huang Cendong.
The Securities Association of China is an industry body supervised by the China Securities Regulatory Commission.