Reforms and large IPOs will put focus on A-share market in 2010

China's A-share market will attract much attention in 2010, partly because it is likely to beat last year's fundraising record, and partly because it is expected to see some highly-anticipated initial public offerings that will demonstrate the Chinese regulators' efforts to reform the financial markets.

The A-share market will continue to absorb massive fundraising deals, particularly by big state-backed enterprises. As the Chinese government tightens its surveillance on bank loans after excessive lending in the first half of 2009 and curbs the development of industries that are not entirely in line with the authorities' economic blueprint, companies will have to rely more on the equity markets to raise money for building new factories and shops, or to fund new projects.

Since China's economy has been relatively less impacted by the global financial crisis, the earnings of Chinese companies, the most important parameter in determining how much a company can raise in an IPO, have also been less affected.