(Yicai Global) Jan. 5 -- Initial public offerings in the Chinese mainland could increase to a record level this year thanks to the full implementation of registration-based listings, The Paper reported yesterday, citing a report from PricewaterhouseCoopers. 

There could be up to 690 IPOs in China’s so-called A-share market this year, with fundraising also set to reach a record CNY560 billion to CNY635 billion (USD88 billion to USD100 billion), according to the report. 

The Shenzhen bourse's ChiNext board may lead the way with 220 to 250 public offerings, while Shanghai's Nasdaq-style Star Market could see 180 to 200. As many as 100 are expected on the main boards of those two cities and the Beijing Stock Exchange could have up to 80, the report said. 

The ChiNext may also keep its No. 1 ranking this year for the most raised by companies, securing proceeds of as much as CNY170 billion. The maximum raised through Shanghai's main board is expected to be CNY160 billion. 

“With the steady progress of the registration system and the opening of the Beijing Stock Exchange, the A-share market has made great strides as the main channel for direct financing,” said Thomas Leung, PwC China markets managing partner.

“The Beijing Stock Exchange has provided a new way for innovative small and medium-sized enterprises to be listed in China,” he said. “The support that the capital markets give to the real economy has become more and more evident.”

Full implementation of the registration-based IPO system, which is currently used only for the BSE, ChiNext and Star Market, is expected this year. The annual Central Economic Work Conference held in Beijing from Dec. 8 to 10 mentioned that reform and opening-up should include full adoption of the system, Xinhua News Agency reported.

New listings and fundraising both set new records in 2021, PwC said in the report, with new listings jumping 25 percent to 493, and funds raised increasing 17 percent to CNY547.8 billion. 

Editor: Tom Litting