A report by the Chinese stock exchange officials on Saturday said that a total of 28 companies have withdrawn their initial public offerings (IPO) from the Chinese stock market mainly because of the market's bearish condition. 

Quartz reported that Chinese authorities are limiting the number of IPOs entering the local stock market in a desperate bid to keep the value of existing stocks from falling further.

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Last week, a total of 25 administrators of various mutual fund companies vowed to use part of their assets to purchase Chinese stocks and refrain from selling them within a period of one year, according to Bloomberg Business.

Earlier, a total of 21 brokerage companies from across the country also pledged to invest parts of their net assets in purchasing Chinese stocks, which are mostly blue chips. The brokers also made an additional promise to buy their own outstanding shares from the stock market. The shares that the brokers have purchased will not be sold back unless the Shanghai stock market returns to its previous 4,500 level.

Meanwhile, securities officials have clarified their official stance and said that they will not prevent the launch of IPOs in the future. They said that the they will only limit the number of monthly IPOs and the amount of capital they plan to raise, according to Reuters.

It is interesting to note that while the Shanghai and Shenzhen stock markets are currently suffering trading losses, both hadenjoyed incredible growth before the crisis. Even now, the Shanghai market is still almost 80 percent higher than the previous year. The Shenzen stock market is almost 90 percent higher than last year.

However, the central government in Beijing has no wish to see the previous gains made by the Chinese stock exchange fall any further. The current loss of value in the Shanghai index is estimated to have reached around $3.2 trillion.

The regulatory authorities have reduced the interest rates and relaxed a number of securities regulation rules in order to encourage more trade in Chinese stocks. Regulators also announced that stock market players caught in the "illegal manipulation" of share prices will face charges.

TagsChina stock market, Chinese stock exchange, China Securities Regulatory Commission (CSRC), Shanghai Composite Index, Shenzhen Composite Index, shanghai stock market