(Yicai Global) Dec. 30 -- Excluding companies applying to list on Shanghai's new Star Market, China approved more than 84 percent of its initial public offering applications this year, up from just 57.5 percent in 2018.

The China Securities Regulatory Commission has approved 138 of 164 applications and will not hold another review meeting until Jan. 2, meaning no more can get the green light this year, according to financial data provider Wind.

Sixty of the companies applied to list on the main boards of the Shanghai and Shenzhen markets, with 53 of them getting the nod to go public. A further 57 of 73 got approval to list on Shenzhen's ChiNext board for growth startups and 28 of 31 received permission to list on the Shenzhen board for small- and medium-sized enterprises.

A shift in regulatory logic is the key to the higher figures, He Nanye, a contributing editor at the Suning Institute of Finance, told Beijing Beijing Business Today. Since the beginning of this year, the CSRC has forced eight companies to cancel their applications and 74 firms have scrapped plans voluntarily.

The CSRC has been tightening its financial reviews of IPO applications and is encouraging companies to self-assess and withdraw as necessary if they do not meet requirements, which is leading to higher quality applications and a more efficient review service, He added.

Some 109 of 114 applicants looking to list on Shanghai's new Star Market for science and technology innovators made the cut, with three rejected and two still under review.

The Chinese mainland market uses an approval-based IPO system under which the CSRC's Public Offering Review Committee conducts examinations and re-evaluations of IPO materials submitted by companies, and holds regular meetings before approving applications. The Star Market, which launched in July this year, uses a registration-based system under which the Shanghai Stock Exchange is in charge of reviewing applications.

Editor: James Boynton