China became the world's largest IPO market in 2010 and will cement this position during the next 10 years, the Guangzhou-based Yangcheng Evening News reported Monday, citing an official from the country’s securities watchdog.

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Qi Bin, director of the Research Center of the China Securities Regulatory Commission, said at a summit June 24 that it would be disadvantageous for the Chinese economy if enterprises have limited access to effective financing channels. In the next five years, China will strengthen the development of the capital market, the newspaper reported.

He also said that it is necessary to introduce social security and pension funds into the capital market to keep the market healthy.

"It is a long way to go for us to develop a complete financial intermediary system," Qi said. But if the capital market is not fully developed, it will damage the national economy, including real estate, agriculture and the mining industry, he added.

"Last year more than 50 companies went public in Zhejiang province alone. It is expected that the trend will be maintained in the next 10 years," Qi said.