The number of newly listed companies should slow down to an estimated 300 to 350 in 2018, with the capital raised reaching around 200 billion yuan ($30 billion), a report from accounting firm PwC showed on Tuesday.

“We anticipate following the recently formed IPO review committee, which adheres to stricter criteria and is tightening regulations governing IPOs, there will be a drop in the approval rate of IPOs, reflecting a trend that could become the norm for capital markets in the future,” said Jean Sun, Assurance Partner of PwC China.

In 2017, the number of IPOs in the Shanghai and Shenzhen stock markets reached 437, marking a historic high for volume and reflecting an increase of 93 percent compared to 227 in 2016. For value, the 235.1 billion recorded in 2017 was 56 percent higher than that generated in 2016.

Looking at Hong Kong IPOs, there were a record-breaking 174 new listings in 2017, of which 80 were Main Board listings, mostly comprised of industrial companies followed by retail, consumer goods & services companies. Separately, the GEM (Growth Enterprise Market) Board broke its record number of listing companies. Eighty companies were listed on GEM in 2017, an increase of 80 percent year-on-year. However, the total funds raised by IPOs in 2017 reached HK$128.2 billion, marking a decline of 34 percent from the previous year.

PwC predicts 80 IPOs in the Hong Kong capital market this year, including the delayed large-scale IPOs on the Main Board and 70 on the GEM Board, with estimated total funds to be raised of between HK$200-250 billion, according to PwC’s report.