BEIJING - China's Shanghai Stock Exchange ranked second in global fundraising during the first half, backed by sizeable listings and the continuing popularity of the bourse's sci-tech innovation board, commonly known as the STAR market, according to a report by global audit and consultancy firm KPMG.

Proceeds from global initial public offerings (IPOs) decreased 8 percent year on year to $68.8 billion in the first half, mostly due to a decline in the funds raised in major stock exchanges in the United States and Europe. However, the fall was partly offset by an increase in fundraising in the Asia market, especially the Shanghai Stock Exchange, the report said.

Building on the success of the STAR market, Shenzhen's ChiNext board launched a registration-based system, and ChiNext's first batch of registration-based IPOs is expected to debut in the third quarter of 2020.

"Following the implementation of a registration-based mechanism in the STAR market, the ChiNext board is officially launching a similar system for IPOs. Such reform will increase investment and diversity in the A-share market while enhancing liquidity," said Louis Lau, partner of Capital Markets Advisory Group of KPMG China.