The China Securities Regulatory Commission delayed the initial public offerings of bubble tea companies Mixue Bingcheng, Guming Holdings, and Auntea Jenny this year as an economic slowdown pummeled its peers' market performance in Hong Kong, Reuters reported Friday, citing eight sources.

Mixue, China's largest bubble tea company, was planning to raise up to $1 billion, among the largest in the city in recent years. Guming was gunning for at least $500 million, while Auntea Jenny was planning up to a $300 million IPO, the report said.

The applications of the three bubble tea operators have lapsed after six months of waiting for approval, the report said. They have yet to refile, according to the publication.

CSRC's move comes as the sector showed low product differentiation and intense competition amid economic weakness, the report said, citing sources.

Sichuan Baicha Baidao Industrial (HKG:2555) plummeted 27% on the close of trading on its first trading day in Hong Kong. Nayuki (HKG:2150), the first bubble tea maker to trade in Hong Kong, slumped 92% since debuting in 2021, Reuters noted.

The Chinese regulator said it was advancing the filing work for the bubble tea companies to comply with regulations. CSRC also plans to improve filing for offshore listings and ensure offshore financing channels remain open, according to the report.

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