China's initial public offering (IPO) market is losing momentum due to fragile stock markets.

The first three quarters of this year witnessed 227 IPOs on domestic stock markets, down from 258 cases during the same period last year, according to data from the Shanghai and Shenzhen bourses. Of this total, only 84 companies went public on the Small and Medium-Sized Enterprise Board, plunging 45 percent from a year ago.

The 227 IPOs raised a total of 230.54 billion yuan ($36.59 billion), down 40 percent year on year. The Sinohydro Group, the builder of the Three Gorges Dam, was the only company who launched an IPO worth more than 10 billion yuan ($1.57 billion).

Analysts attributed the gloomy performance to weakening investor confidence as the stock markets turned bearish. The benchmark Shanghai Composite Index has slumped 15.98 percent so far this year, ending at 2,359.22 points on September 30.

"Fewer large IPOs will come to the market in the immediate future, as most large enterprises are already listed," said Zhang Xiang, an analyst with Guodu Securities Co. Ltd.

Meanwhile, smaller companies may choose to go public at a slower pace, given the dark market prospect, he said.