Analysts and economists said this year is the best time to invest in the stock market as Chinese stocks are predicted to rise by 30 percent this year following last year's 53-percent surge.

The China International Capital Corporation (CICC) said Chinese stocks will be pushed further up by financial reforms that will be initiated by the central government this year, even as the economy continuous to face headwinds.

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The Chinese stocks rallied to 53 percent last year following an 18-month IPO suspension, overtaking Japan as the world's second biggest stock markets, due to speculations that authorities will ease monetary policy in order to support growth.

For this year, investors and analysts have become more optimistic as China's property market slowdown results to the diversion of capital into the stock market. The Hong Kong - Shanghai stock connect, which allows Hong Kong investors to buy shares in Shanghai for the first time, also adds to optimism that the stock market will further surge.

According to CICC, the rise in Chinese stocks is a multi-year rally as policy markers reduce funding costs and push through with much anticipated reforms. On 7 January, the Shanghai Composite Index surged to a 66-month high.

Chinese regulators have been implementing sweeping rules and regulations that will further promote investments in the country's stock markets.

Following an 18-month suspension that was lifted last year, around 200 Chinese companies are expected to launch initial public offerings (IPOs) this year on both the Shenzhen and Shanghai stock markets.

In the first week of January alone, the China Securities Regulatory Commission approved the IPOs of 20 Chinese companies, an unprecedented development.

The number of expected IPOs this year is 60 percent more than last year's IPOs and the companies are expected to raise up to 130 billion yuan, or about US $21 billion..

The Shanghai and Shenzhen bourses handled 125 IPOs last year with a combined value of 78.6 billion yuan.

According to PricewaterHouseCoopers, the growth of IPOs in China this year can be attributed to the improved capital market operations and the possible introduction of a new IPO registration system. 

TagsChinese Stock Market, Shanghai Stock Exchange