(Yicai Global) Jan. 12 -- Many Chinese banks and security traders will likely list to alleviate capital pressure after the government strengthened regulations.

Based on the number of institutions waiting for a preliminary initial public offering review, more banks and brokers will probably float this year than did last, insiders told Yicai Global.

One bank and four securities firms listed on the A-share market last year, and as many as 12 banks and eight brokerages may do so this year, they said.

Large banks and small ones face tremendous pressure as new financial regulations and control policies aim to include off-balance-sheet credit, wealth management and other assets in balance sheets, a senior strategist at a brokerage told Yicai Global.

Small banks that do not IPO now may not have a chance to later due to changes in policies or their business operations, the strategist said.

The market has been favoring banks. Their stocks climbed 28 percent last year after falling 0.6 percent and 1.5 percent in 2015 and 2016, respectively.

The profit-making model for brokerages has undergone fundamental changes in recent years with brokerages representing a decreasing proportion of the industry, while the share of investment banks, asset managers and capital intermediaries rose, the strategist said, adding that brokers must expand their capital to grow.