The number of IPOs by Chinese companies in May decreased month on month but surged year on year, according to new data.

The Zero2IPO Group, a consultancy on IPOs and mergers and acquisitions, issued a report on Monday indicating that 40 Chinese enterprises completed IPOs in May, which is a 2.44-percent decrease from April, but a 185.71-percent increase from a year ago.

The companies went public on four exchanges – the Shanghai Stock Exchange, ChiNext of the Shenzhen Stock Exchange, the SME Board of the Shenzhen Stock Exchange, and GEM of the Hong Kong Stock Exchange. Twenty-four of the 40 received financial support from venture capital/private equity (VC/PE) agencies.

China's IPOs slow in May /CFP Photo

Another data source disagreed on the numbers, however. According to a set of figures provided by VC/PE data specialists CVSource, there were 45 IPOs in May, resulting in a 10-percent decrease from April and a 150-percent increase from May 2016.

China's stock regulator, China Securities Regulatory Commission (CSRC), has been toughening its rules to ensure the quality of listed companies while speeding up the approval process.

Liu Shiyu, chairman of the CSRC, on March 7, 2017. /CFP Photo

The commission in February vowed to allow more companies to list on the stock market because entry of new companies can "increase market liquidity and attract additional capital."

The number of IPOs consequently rose from 42 in February 2017 to 58 and 50 in March and April, said CVSource.

However, quality is indeed something the CSRC is looking for. On Saturday, CSRC Chairman Liu Shiyu reiterated this message to the China Securities Industry Association.  "The listed companies should still be closely regulated after IPOs," he said.