Yahoo Finance 
The Chinese government just took drastic steps to save the stock market
(AP)
China is stepping in to try and save its flailing stock market.
According to a Bloomberg report on Saturday, officials are suspending Initial Public Offerings (IPOs) – as many as 28 on the Shanghai and Shenzhen stock exchanges – to deal with the tumble in stocks.
Stopping new companies from going public in IPOs may reduce the flow of cash from existing stocks, Bloomberg notes.
There was no information on how long this ban would last.
An earlier report indicated that Chinese officials also created a "market-stabilization fund" that will be supported by about 21 Chinese brokerages, who have pledged to buy at least 120 billion yuan ($19.3 billion) in shares.
But as Bloomberg notes, that amount is small when compared to the $2.4 trillion that vanished from Chinese stocks in the last three weeks.
Senior government, central bank, and regulatory officials met Saturday to discuss how to address the stock market crash.
On Monday, China's Shanghai Composite index crashed into a bear market, and is now down nearly 30% from its June 12 high.
That was after a massive 120% surge in the previous 12 months.
Here's a chart showing the Shanghai Composite index's incredible rally, and the recent plunge. Bloomberg notes that the three-week decline was the worst since 1992.
(Investing.com)
NOW WATCH: Take a tour of the $367 million jet that will soon be called Air Force One
More From Business Insider
