The pace of new initial public offerings coming to market in Greater China accelerated in the first quarter this year, despite global IPO activities getting off to a relatively slower start, according to the quarterly EY Global IPO trends report.

The faster rate of new offerings in Greater China in the same period partly due to mainland China's regulator speeding up IPO approvals, although the impact was somewhat offset by the impact of the late Chinese New Year, which caused a temporary slowdown in activity, added the report

It also predicted that the more rapid pace of approvals will be maintained throughout the year and the number of IPOs is expected to increase.

Terence Ho, EY's Greater China strategic growth markets leader , says: "2015 will be a year of reform for the Greater China stock exchanges. The launch of the Hong Kong-Shenzhen Stock Connect and the switch from an approval-based system to a registration-based system in the mainland China A-share market will significantly boost activity in the second half of 2015. In the meantime, we expect to see more IPOs in the mainland China market as the regulator speeds IPO approvals to clear the 600-strong backlog."

Amid reports that Chinese growth is slowing, its government has issued a series of monetary policies, including the lowering of interest rates and the RMBrenminbi reserve-requirement ratio (RRR) to balance stability with improved growth and market liquidity.

Industrials continue to be the major IPO force on mainland China exchanges. The sector led in terms of deal in Q1 2015 numbers and ranked second by funds raised (after the financials sector): The period saw US$2.1 billion of capital raised via 26 IPOs on mainland China exchanges. The materials and high-tech sectors were also very active by deal numbers, with the technology sector buoyed by government support and encouragement for innovation, according to the quarterly report.

Hong Kong, usually a powerhouse for large China listings, had a slow start this year. This may have been partially due to the late Chinese New Year causing a delay as companies waited for their year-end numbers before coming to market. The pipeline is still very strong with over 50 companies; IPO activity on the main market is expected to pick up for the rest of 2015.

In the first quarter 2015, only one offering on the Hong Kong Main Market made the 10 largest global IPO list; the IPO of broadband services provider Hong Kong Broadband Network Limited (HKBN), which raised US$748 million after pricing at the top of its range.

Against this acceleration in Greater China, global IPO activity has witnessed a relatively slower start in Q1 2015, compared with both the fourth quarter last year and the same three-month period last year. Capital raised stood at US$38.2 billion down 19% from 1Q 2014 and 47% from 4Q 2014. Deal numbers in the first quarter reached 252 IPOs, a decrease of 4% on first quarter 2014 and 31% lower on Q4 2014, according to the quarterly EY Global IPO trends report.

The regulator will continue to accelerate the approval of IPOs on mainland China exchanges and it is expected that there will be more than 200 IPOs in 2015.

Despite the slow start, the HKEx IPO pipeline is also strong and includes a number of big deals which are expected to boost market performance.

All preparation work for the Shenzhen-Hong Kong Stock Connect programme is being pushed forward in an orderly manner and it is expected that its approval and commencement in 2015 will benefit both markets. The concomitant easing of restrictions on foreign capital is likely to further spark foreign investors' interest. China will also continue its efforts to promote its A-share index, which is being incorporated into the Morgan Stanley Capital International (MSCI) index.

"Investors are optimistic regarding the Greater China stock market due to the expectation of further monetary easing and a favorable public policy environment in 2015. While A-share investors continue to make easy money from IPOs, we anticipate that investor confidence is likely to remain high," Ho noted.