Companies from the telecommunication, media and technology sector will dominate the initial public offering market on the mainland this year, as semiconductor, artificial intelligence, cloud computing, 5G networks and intelligent manufacturing firms attract interest from investors, according to global accounting firm Pricewaterhouse Coopers.

The launch of a science and technology innovation board at the Shanghai Stock Exchange this year will create a new financing platform for technological innovation firms on the Chinese mainland, the report said.

It said the board will become the "test field" for innovation in the Chinese mainland capital market, herald more opportunities for the domestic IPO market and be an important role model for capital market reforms.

"With the launch of a series of policies such as the pilot registration system, market-oriented approaches, loosened requirements on profitability and inclusive corporate governance, more opportunities will be created for innovative tech companies to list in the domestic market," said Charline Ni, PwC China's technology leader.

According to PwC, the number of Chinese mainland TMT industry IPOs rose significantly to 40 in the second half of 2018, with total proceeds amounting to 168.1 billion yuan ($25 billion).

China Tower Corp, Xiaomi Corp and Meituan-Dianping completed the three largest TMT public offerings in terms of proceeds in the second half of 2018. Total proceeds from Chinese mainland TMT floats reached 225.9 billion yuan last year, triple the level seen in 2017.

"Since many TMT unicorns went public in Hong Kong and overseas last year, the total proceeds of IPOs raised by Chinese mainland TMT companies soared. Hong Kong became one of the world's hottest IPO markets in 2018," said Gao Jianbin, PwC China TMT leader.

In the second half of 2018, 31 Chinese mainland TMT companies chose to list in Hong Kong or overseas, with their proceeds accounting for 94 percent of the total. Two TMT companies were listed on the Small and Medium Enterprises Board in Shenzhen, four on the Main Board, and three on the Growth Enterprises Market Board in Shenzhen, accounting for 2 percent, 2 percent and 1 percent of total proceeds, respectively.

Among all these 40 Chinese mainland TMT sector IPOs, 14 were in the hardware and equipment sector, accounting for 35 percent of the total. The software and service sector featured 26 IPOs, accounting for 65 percent of the total.

As sales of Xiaomi and China Tower, which fall into the hardware and equipment sector, far exceeded those of other companies listed during the same period, the average sales of listed companies in the hardware and equipment sector were relatively high.

Gao said with a decline in global economic growth and uncertainties around Sino-US trade negotiations, Chinese mainland TMT industry IPOs in the Hong Kong and US markets will see a slowdown in 2019.

Key financial data showed that among the 31 TMT companies that launched IPOs in Hong Kong or overseas in the second half of 2018, 19 were in the red, making the average net profit of listed TMT companies in this sector fall into the negative territory.

The average price-to-earnings ratio of A-share TMT companies has continued on a downward trajectory in recent years. As of Dec 31, 2018, the average PE ratio of A-share TMT companies was 33, compared with 49 as of Dec 31, 2017.