China led the global initial public offering (IPO) market in terms of funds raised and the deal number, according to "EY Global IPO Trends: 2015 Q2" released on June 25.

China's exchanges accounted for 38 percent of global IPOs by number of deals and 39 percent by capital raised in the first half of this year.

The report, released EY, an international accounting firm, revealed in the first half of 2015, China's mainland exchanges in Shenzhen and Shanghai ranked first and second in the world by number of deals, while Shanghai and Hong Kong exchanges ranked first and second by funds raised.

Terence Ho, EY's Greater China Strategic Growth Markets Leader, introduced that China's mainland exchanges saw a total of 190 IPOs raising US$23.7 billion, far exceeding the entirety of 2014 by both deal number and proceeds. Hong Kong Exchanges was also active with 45 IPOs raising US$16.1 billion.

A variety of factors attributed to China's bullish capital markets, according to Ho.

The country's favorable monetary policies of successive lowering of interest rates and reserve requirement ratio for banks and the capital market reforms helped create the strong market. A more streamlined and transparent listing procedure for IPOs has also made a domestic offering a more attractive option,

Compared with last year when many Chinese tech companies including Jack Ma's Alibaba and online retailer Jd.com went public on US exchanges, 2015 saw a drastic decline in this regard. Chinese companies from all sectors choose to list on domestic exchanges.

The main driving forces for the change lie that: improved efficiency in the review and approval process of A-share listing, the forth-coming of the registration based system and the loosened profit requirements. Moreover, the Shanghai Stock Exchages is on track to launch a new market "Board of Strategic Emerging Industries" to attract high-growth companies, explained Victor Chan, EY's Asia Pacific Capital Markets Partner.

China will continue to lead the global IPO market for the rest of the year as it will revise the Securities Law, paving the way for the China Securities Regulatory Commission to switch to a US-style registration-based regime towards the end of 2015 or the beginning of 2016, predicted Terence Ho.

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