Chinese firms raised US$88.52 billion through initial public offerings (IPOs) in the first 11 months, almost double last year's level, Zero2IPO Group said yesterday in Shanghai.

The home IPO proceeds surpassed the overseas-listed for the first time in recent years because of the completed share structure reform and the relaunch of domestic IPOs, industry insiders said during the China Venture Capital Annual Forum 2007, which opened yesterday in Shanghai.

From January to November, 98 firms, including giants such as Petro China and China Construction Bank, became listed in the domestic stock markets and raised US$54.31 billion.

Meanwhile, 105 firms, such as SOHO and Alibaba.com, issued IPOs in the overseas markets to raise a combined US$34.21 billion, according to Zero2IPO, a Beijing-based venture capital and private equity consulting firm.

China relauched the IPO in May, 2006, after one-year halt for the share structure reform.

"The giants flood into or come back to the domestic market and the booming RMB fund will ensure the trend continues," said Gavin Ni, Zero2IPO's founder, president and chief executive. The RMB fund, which accounted for less than 20 percent of total investment funds in China, won't dominate the market within five years though it will grow rapidly, according to Ni.

Several dozen government-backed funds, which are established to support local pillar industries, will also boost domestic listings, said Jin Haitao, chairman of Shenzhen Capital Group Co.

He said the NASDAQ-like market for high-tech firms is expected to debut in Shenzhen next year, which will attract more small firms.

Hong Kong was still the top choice for overseas listing, which accounted for 78 percent of the volume of overseas IPOs. The orientation IPO market has diversified and Chinese firms have been listed in London, Japan and South Korea, according to Zero2IPO.

(Shanghai Daily December 7, 2007)