(Yicai Global) March 29 -- Fundraising from listings in China's mainland and Hong Kong fell in the first quarter of the year, according to a report from Ernst & Young though the professional services giant noted signs of a possible recovery.

Initial public offerings fell in China's mainland in the first quarter on an annual basis to 30 listings with USD3.7 billion raised, though this was a rebound compared with the fourth quarter of 2018, according to EY's Global IPO Trend: 2019 Q1 report.

"Ongoing trade issues between the US and China continue to have an effect on IPO market sentiment across Asia-Pacific," said EY APAC IPO Leader Ringo Choi. "But with exchanges across the region recovering from equity market corrections in the fourth quarter 2018, there are signs of a recovery in IPO activity ahead."

"Post-IPO performance levels are another key factor to watch in determining the recovery speed of IPO activity levels in 2019," Choi added.

The introduction of the Shanghai Stock Exchange's new tech board in the first half of the year is expected to boost activity, the bourse said in a recent statement. This move will accelerate IPO approvals in the second half and improve the performance of the IPO market.

The Shenzhen Stock Exchange ranked fourth worldwide in terms of trading volume while Shanghai was sixth, the report states. SZSE and SSE ranked third and fourth, respectively, in terms of fundraising.

The Hong Kong Stock Exchange was the busiest stock market in terms of transactions and raised the most funding globally in the first quarter. Listing on the special administrative region's main board edged up on an annual basis.

Editor: William Clegg