China's securities regulator has approved new IPO applications from two companies, which will raise no more than 2 billion yuan ($310 million) in the A-share market.

Red Avenue New Material Group Co Ltd will be listed on the Shanghai Stock Exchange while Wuhan Raycus Fiber Laser Technologies Co Ltd will be listed on the ChiNext, a NASDAQ-style board, the China Securities Regulatory Commission (CSRC) said Friday.

The firms and their underwriters will confirm IPO dates and publish prospectuses following discussions with the exchanges.

Under the current IPO system, new shares are subject to approval from the CSRC.

China is gradually switching from an approval-based IPO system to a more market-oriented one based on registration.