"We don't expect any large IPO projects like the ICBC in 2007, though the strong IPO growth will remain in Hong Kong," said Terence Ho, an Ernst & Young partner for China IPO business.

In 2006, a total of 146.3 billion yuan in funds was raised through IPOs in Shanghai, compared with only 2.4 billion yuan in 2005 as the regulatory authority suspended fundraising on domestic markets to pave the way for its national stock reform.

Of the 14 IPOs in Shanghai last year, 46 percent concurrently issued both A and H shares, while 34 percent were listed companies with H shares that then issued A shares, the Ernst & Young report said.

"A plus H is the trend," said Raymond Ng, a partner at Ernst & Young's Assurance and Advisory Services, adding that many red chips are looking for ways to float shares in Shanghai in 2007.

PricewaterhouseCoopers expected the volume of new listings to hit 70 in Hong Kong this year. But the total capital raised may decline with the absence of mega deals like the IPOs of the ICBC and Bank of China, which together accounted for 62 percent of the total amount raised through IPOs in 2006.

Financial institutions, real estate, retail and consumer goods-related companies from China's mainland will be the key contributors to capital raised in 2007, according to the PricewaterhouseCoopers report.

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