Funds raised through initial public offerings (IPOs) in China are expected to rise 47% to 152 billion yuan (US$22 billion) in 2009 as a result of government stimulus policies, according to a report from Pricewaterhouse Coopers (PwC).

Sectors such as infrastructure, finance, consumer goods manufacturing and retailing will benefit from a 4 trillion yuan economic stimulus package announced in November, hence IPOs in those areas will gradually come back to growth, PwC said.

“It’s hopeful that China’s capital market will see a steady development in the second half of 2009 as the economy’s fundamentals remain stable,” said PwC China Managing Partner Lin Yizhong. China will recover sooner than other countries afflicted by the global financial crisis because of its economic foundation and massive fiscal stimulus plan, said the report.

The value of IPO funds raised by the Shanghai and Shenzhen stock exchanges in China slumped by 78% last year, from 477.1 billion yuan in 2007, as investor enthusiasm fizzled out with the onset of the global financial crisis.

New listings in Hong Kong are expected to raise HK$70bn (US$9bn) in 2009, slightly more than last year’s HK$65.8bn, PwC said. However, the number of new listings is likely to dip to 35 in 2009 from 49 last year.