Beijing has accelerated the pace of initial public offerings following the smooth listing of the Agricultural Bank of China (ABC) last month, a move that is likely to cap the recent gains on the A-share market. In the coming week 11 share offerings, including China Everbright Bank's US$2.9 billion fund-raising effort, will flood the Shanghai and Shenzhen stock exchanges. This is in stark contrast to the week before ABC's listing on the Shanghai bourse in mid-July when the China Securities Regulatory Commission (CSRC) did not approve a single IPO. The regulator gave ABC's listing top priority for months to ensure the worst-performing bank among the country's Big Four completed its mega fund-raising exercise in Shanghai and Hong Kong successfully. ABC's A shares closed at 2.73 yuan (HK$3.12) yesterday, 1.9 per cent above the offer price of 2.68 yuan, a price many analysts consider overvalued. 'IPOs have become investors' top concerns recently - they have become confused by the regulator's attitude towards the market,' said Bohai Securities analyst Zhou Xi. 'The recent rally was believed to be short-lived because fundamentals were not strong enough to support it,' Zhou said. The Shanghai Composite Index jumped 10.2 per cent between July 16 and August 2 before slipping 1.7 per cent to close at 2,627 points yesterday. So far this year, the benchmark has lost 19.8 per cent as monetary tightening drained market liquidity. 'Volatility is the name of the game in the market at the moment,' said TX Investment Consulting analyst Qiu Yanying. 'The market chalked up a handsome gain last year and it won't be a surprise if it drops dramatically this year.' Beijing has yet to show any inclination to intervene in the stock market this year - a rare move that usually involves top regulators or Communist Party mouthpieces talking up the market when the key indicators fall sharply amid a crisis of confidence. A CSRC official said investors had become more mature these days and could digest heavy losses after experiencing years of roller-coaster rides in the market. The Shanghai indicator climbed 97 per cent in 2007 followed by a 65.4 per cent decline the following year. Last year, it jumped 80 per cent. Analysts said the giant initial public offering by Everbright Bank next week was expected to cause a huge capital outflow over the next few days. The 11th biggest lender on the mainland plans to float up to 6.1 billion shares on the Shanghai exchange after it received approval from the CSRC late last month. The go-ahead demonstrated Beijing's determination to allow mainland banks more opportunities to raise funds on the stock market to replenish capital after the ABC's successful launch. Mainland banks extended a record 9.6 trillion yuan in loans last year and most of them need fresh funds to boost capital adequacy ratios while covering potentially soaring non-performing assets.