BEIJING - The country's A-share market is expected to raise more than 1 trillion yuan this year despite government measures to withdraw liquidity out of the market.

The A-share market, or yuan-denominated stocks market, attracted 438.4 billion yuan ($67.76 billion) in the first five months this year, up about 56 percent from 280.54 billion yuan in the same period last year, according to WIND Information Co Ltd, a Shanghai-based financial data provider.

China's A-share market raised a total of 1.03 trillion yuan in 2010, up 123 percent from 2009, according to China Securities Regulatory Commission (CSRC).

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Besides money already raised, more listed companies are queuing to raise about 521.6 billion yuan this year, indicating the yearly volume will hit about 1 trillion yuan, according to WIND Info.

Capital supply is strained though with the unprecedented fund-raising size and the tightening monetary policies.

The central bank has raised interests rates twice this year and hiked the bank reserve requirement ratio five times.

It is widely expected that China will not stop tightening until inflation is firmly under control.

The Consumer Price Index (CPI), a major gauge of inflation, is expected to hit 5.3 to 5.5 percent in May and the central bank will hike interest rates again in June, Guotai Junan Securities analyst Li Xunlei said.

China's stock markets remained sluggish in the first five months under double pressure of fund-raising and tightening monetary policies.

Fund-raising expansion will affect the market in a negative way in a bear market, Cinda Securities Co Ltd analyst Liu Jingde said.

Chinese shares rose on Friday after declines following the US market on the previous trading day.

The benchmark Shanghai Composite Index gained 0.84 percent to 2,728.02. The Shenzhen Component Index rose 1.18 percent to 11,642.40.

The CPI rose 5.3 percent in April from the previous year, well above the government's annual inflation control ceiling of 4 percent.

Analysts worry the drought currently plaguing the middle and lower parts of the Yangtze River basin might worsen inflation in May.

The lingering drought has parched the fertile lands of the Yangtze River basin, with the lowest levels of rainfall there since 1961.

The drought has affected parts of Hubei, Hunan, Jiangxi, Anhui, Jiangsu and Zhejiang provinces. These areas have seen 40 to 60 percent less rainfall than normal.