China says to reduce IPOs amid stock slump

China will reduce the number of initial public offerings and the amount of capital raised from the equity markets, the stock regulator said on Friday, as markets shows little sign of stabilising after dropping by nearly a third in three weeks.

China Securities Regulatory Commission spokesman Zhang Xiaojun said 10 IPOs would be launched during the first 10 days of July, down from more than 20 deals launched at the beginning of each month so far this year.


Investors look at computer screens showing stock information at a brokerage house in Shanghai.
Aly Song | Reuters
Investors look at computer screens showing stock information at a brokerage house in Shanghai.

Zhang also said the regulator supported long-term investors, including pension funds, insurers and Qualified Foreign Institutional Investors (QFII) to enter the stock market to stabilise prices. The QFII scheme is one of the main channels of foreign investment in the country's capital market.

China's main stock indexes have fallen nearly 30 percent since mid-June despite series of government measures to stem the sell-off.

Read MoreChina's biggest IPO since 2010 makes blockbuster debut

Zhang also said China Securities Finance Corp, China's official margin lender for brokerages, would boost its capital base to 100 billion yuan ($16 billion) from 24 billion yuan and would further raise money from various channels to expand business and stabilise markets.

Many analysts suggest high levels of margin borrowing have exacerbated the falls as investors have been forced to sell assets to meet margin collateral requirements.

Follow us on Twitter: @CNBCWorld