Stocks hit by reported CSRC ban on non-core buys

A Facebook staff uses a Gear VR virtual reality headset by Oculus and Samsung Electronics at the new Facebook Innovation Hub during a preview media tour in Berlin, Germany, February 24, 2016.[Photo/Agencies]

Caixin suggests finance, gaming, film and TV, and virtual reality deals targeted

Gaming, entertainment and virtual reality stocks declined on Wednesday after a media report suggested the Chinese securities regulator had banned listed-companies from acquiring assets in industries not related to their core activities.

Shenzhen-listed Kaiser (China) Holding Co Ltd, a textile manufacturer that has invested intensively in the gaming industry, saw its shares tumble 9.98 percent to close at 19.31 yuan while shares in digital media company AVIT Ltd, which is expanding into the VR industry, plunged by the 10 percent daily limit to close at 22.46 yuan.

Chinese business news site Caixin reported the China Securities Regulatory Commission had halted private placements by listed companies that involve online finance, gaming, film and television and virtual reality.

It said the regulator had also suspended mergers and acquisitions as well as refinancing in those industries, according to the report, which cited industry sources.

CSRC press office did not respond to China Daily's inquiries.

A banker responsible for investment banking at a major international finance house in Beijing said he has not received any regulatory notification regarding the issue.

The Securities Times, which is affiliated to People's Daily, reported later, however, that the regulator was proceeding normally with applications for private placement and M&As in those industries, citing an executive at a major domestic investment bank.

"It does not mean the regulator would ban all private placements and M&As in the four industries. It will probably be conducted on a case-by-case basis," the newspaper quoted the executive as saying.

As investment bankers and companies awaited confirmation or clarification from the regulator, analysts said the report could be a signal the CSRC plans to curb speculation by listed companies in virtual industries.

Some suggested the news may also herald a tightening in regulations, possible manipulation, as the regulator looks to maintain stock market stability.