Initial public offering activity in China is up sharply this year, generating large gains for venture capital and private equity investors, ChinaVenture Group said on Tuesday.

There were 224 IPOs in the first 11 months that raised a total of 340.8 billion yuan ($55.4 billion), [Company Incorporation USA]up 159 percent for the full-year figure in 2013, the group said in a report.

It said 174 venture capital and private equity firms cashed out in the IPOs, receiving 590.5 billion yuan, up 1,367.7 percent from the full-year total in 2013.

Their average rate of return from IPO exits was 8.6 times, almost triple the 2013 level.

Some notable transactions in terms of exit rates included VC firm Legend Capital's 343.5 from China Auto Rental, followed by China Renaissance K2 Ventures from Jumei International Holding Ltd of 315.7 and Softbank from Alibaba Group Holding Ltd of 271.2, according to the report.

"IPO resumptions provided an important exit channel for VC and PE firms, which waited for a long time," said Lyu Shuai, an analyst at ChinaVenture Group.

New offerings were suspended for more than a year to allow for reform of the IPO process.

Part of that ongoing reform is the establishment of a registration system for new share offerings, [Hong Kong Company Registration Guide]which would replace specific individual approvals by regulators. A draft plan for that system has been completed and was referred to the State Council (cabinet) in late November, the China Securities Regulatory Commission said on Nov 28.