Regulators also allocated more shares to be subscribed by retail investors this time. This has led to institutional investors scrambling for 10 percent of the shares some of the companies have put up for sale, while the remaining 90 percent are up for grabs for retail investors.

Previously, some institutional investors would borrow to buy new stocks, but in the latest round of IPOs, some institutional investors were allocated as few as 2000 shares, which squeezed out room for institutions to take a profit through leverage.

However, retail investors hold a different view, saying cheap valuation makes these shares more affordable and gives them greater potential to rise once they are traded on the open market.

"This is the first time I have ever snatched up shares in the primary market," said a man surnamed Wang in Shanghai. He was referring to the 1,000 shares he has successfully subscribed for each of two new listings.

A veteran investor since the early 1990s, Wang has been through the thick and thin of China's stock market.

One of his picks, Guangdong Ellington Electronics Technology Co Ltd, has seen its share price more than double since its debut on the Shanghai stock exchange on July 1. His other pick, Zhejiang Shapuaisi Pharmaceutical Co Ltd, is also set to double its offering price.

"The stock market has been too bearish for too long. Regulators should do something to mobilize investors," Wang said.

"It's extremely lucky to get these shares," said Ye Xiaohua, another investor who has bought shares of two new listings. "It is a risk-free investment. These shares will rise for sure and even double what they are worth as soon as they begin to trade on the stock exchange."

Shares of the 10 newly listed firms have so far rarely changed hands, indicating that investors are expecting further gains.

As China's stock market is dominated by retail investors, the regulator's move to limit capitalization of new issuance could strike a balance between retail and institutional investors, according to Anthony Wu, a partner with Deloitte.

"If a stock is too pricey, it could just hurt retail investors, " Wu said.

CBRC spokesperson Zhang Xiaojun said there is no definite timetable to change the IPO process from the approval-based system to a registration-based one.

The spokesperson cautioned against haste in implementing IPO reforms, saying some crucial steps are to be taken, including revising the securities law.

The latest measure to reform China's capital market came on Friday when the securities regulator announced rules for companies to delist from the stock market.

Deloitte's Wu said regulators should strengthen rules to crack down on accounting fraud and insider trading.

Wu urged regulators to watch out for retail investors' interests. "If regulators fail to take concrete actions on these fronts, then the transition to a registration-based IPO system will be an unfulfilled promise," Wu said.

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