SHANGHAI, July 10 Reuters China39;s IPO applications slumped by a third in the first half of 2023, as earnings volatility, a slowing economy and tighter regulatory scrutiny deterred potential candidates.

Chinese exchanges, which vet initial public offering IPO plans, accepted around 330 new applications during the period, down from more than 500 a year earlier, exchange data shows.

Although Beijing has adopted a registrationbased system designed to let the market decide which companies list, bankers have said that the process largely remains at the discretion of authorities, using unwritten rules to decide on the grounds of national security or industrial policies.

Terence Ho, Greater China IPO Leader at EY, attributed the sharp fall in applications in January to June partly to some listing hopefuls failing to meet revenue or profit requirements as last year39;s Chinese economic downturn hit their businesses.

In addition, regulators have imposed stringent rules and penalties on the sponsors, making them more cautious in sponsoring companies39; IPOs, Ho said.

Although total proceeds raised on China39;s IPO market shrank from last year, it was still the biggest globally in the first half, dwarfing others including New York and Hong Kong.

Shanghai39;s techfocused STAR Market was the top venue, where companies raised 10.6 billion via IPOs in the first six months.

Shenzhen startup ChiNext was the secondbiggest IPO hub with 9.3 billion raised, followed by New York, with…