IPO proceeds to hit 6-yr peak on cut-debt drive

Fundraising from Chinese domestic initial public offerings this year is expected to jump to the highest level in six years, as the government turns to the stock market to help companies reduce debt.

The volume of first-time share sales in the Chinese mainland is forecast to rise 50 percent to about 225 billion yuan ($32.4 billion), according to the median estimate in a Bloomberg survey of analysts. The increase would follow a surge in the fourth quarter, when the amount raised from A-share IPOs was more than six times a year earlier, data compiled by Bloomberg show.

Last month's Central Economic Work Conference, an annual gathering in Beijing of top officials, emphasized debt reduction as a key priority and encouraged equity fundraising.