Chinese companies are now turning to the European market to raise funds as the door to the American market for initial public offerings (IPOs) is almost blocked to them, China Securities Journal reported Tuesday.

Four Chinese businesses were listed on Prime Standard of the Deutsche Börse (German Board) in the first seven months of this year, adding the total to eight.

Despite possessing little knowledge about IPOs in Europe, Chinese companies are still turning to Germany and the UK, Zhang Lan, an analyst from Zero2IPO Research Center, explained. The two countries are considered pillar economies in Europe with stable environments and strong economic resilience. The financial crisis had limited impact on both countries.

The German Board has a comprehensive regulatory system, transparent transaction process, and a high liquidity brought by its market maker system.

The London Stock Exchange (LSE), the world's oldest exchange, has five Chinese mainland based businesses listed successfully.