In a bid to head off a speculative bubble, China’s securities regulator is set to bar companies from selling new shares to fund investments in film and television, online gaming, internet finance and virtual reality, fields that it deems non-core businesses, a leading national magazine reported.

Citing two unnamed sources, one at the China Securities Regulatory Commission (CSRC), and the other an investment banker, respected business outlet Caixin reported on Wednesday that media and entertainment had been singled out because they are viewed as not closely related to the so-called “real economy.”

According to Caixin’s source at the CSRC, the regulator is worried that listed firms will take advantage of investor enthusiasm in the movie and television business, video games, and virtual reality technologies, which have shown signs of overheating. The CSRC did not respond to China Film Insider’s inquiries.

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China Film Insider

China Film Insider is a trade publication that reports on the relationship between China’s film industry, Hollywood, and the rest of the world. It is a news website dedicated to bridging the gap of understanding...