The Chinese mainland led the global market for initial public offerings this year as 349 companies debuted and raised nearly 490 billion yuan (US$74.02 billion), both records, industry data showed.

The two records were achieved under a backdrop of ample cash and a strong economy while other countries struggled in the wake of a recession.

However, despite massive IPO sales, the Shanghai Composite Index was one of the world's worst performing stock markets this year, dropping about 16 percent with only two trading days left in 2010.

The money raised from IPOs on both Shanghai and Shenzhen markets hit 487.92 billion yuan this year, beating the previous record of 447.3 billion yuan set in 2007. Total shares issued by the offerings also surpassed 2007's record 41.37 billion to 58.04 billion, the data showed.

The Agriculture Bank of China, one of the big-five state-owned banks, contributed the most to this year's record. It raised 68.53 billion yuan by issuing 25.57 billion shares in July. The listing was the world's second biggest, behind only General Motor's US$23.1 billion offering in November.

The new listings didn't necessarily perform well due to high price-to-earnings ratios - an index that measures whether a stock is overpriced.

The average P/E ratio for this year's IPO firms hit a record of 57.93 times, the data showed. Starway Bio-technology Co led the way with its ratio at 138.46 times.

Among the new listings, 26 fell below the IPO price on debut. This didn't happen among the 99 companies that listed in 2009.

Average annual price gains by this year's new shares declined to 56.02 percent compared with 110.37 percent for new listings in 2009, according to the industry data.

China has been stepping up efforts to allow more companies to list so that firms are not solely reliant on bank loans to fund expansion.

This year's IPO records are likely to be broken in 2011 when more than 400 companies are expected to list, according to Ping An Securities.

Ernst & Young agreed in a report early this month that the total amount raised from IPOs next year will reach more than 600 billion yuan.

In Shanghai, firms in the resources, industrial and financial sectors are likely to launch IPOs in 2011, according to the firm.