Research On The Reform Of The Gem’s IPO System In China

In order to promote China’s securities market sustainable and healthy developmentof the GEM market, inhibition of IPO under-pricing issue price and earningsmanagement has be imperative. Since the gem was established in three years, China’sfinancial supervision departments issued a number of policies to standardize the marketoperation, carried out several rounds of reform, but the IPO Underpricing and earningsmanagement level is higher than the other mature markets and emerging markets. In thispaper, based on the empirical results, by using the method of game theory in view of theexisting gem IPO system in the IPO issue price and earnings management to conduct acomprehensive analysis, to explore the causes of abnormal phenomena in the gem IPOproblem. And through the international comparison of the gem IPO system, drawing onthe gem IPO system reform experience. This paper is divided into six chapters, eachchapter of the main contents are as follows:Firstly, on the domestic and foreign related to the gem IPOs issuing system, offering,offering mechanism, pricing, classify and review related literature and the presence ofIPOs in the two most notable problem--the problem of IPO Underpricing and theproblem of earnings management and the theoretical hypothesis. The description of thegem IPO system in China, the current implementation of the characteristics of theproblem, the gem IPO system in our country and the existing.Secondly, carries on the analysis to the gem IPO system, using game theory,combined with the reality of China’s capital market, by virtue of the presence ofabnormal phenomena in China in the process of IPO in the logical framework analysismodel; the analysis of the existing IPO system, the gem of China’s problems, and drawthe relevant conclusions.Thirdly, through the comparison with the gem IPO system, summarizes theadvantages and disadvantages of the gem IPO system, then analyzing disadvantages ofthe gem IPOs system in our country and there is room for improvement. Based on thegem IPO system states, try to structure the reform orientation of gem IPOs system in ourcountry, design and selection. Conclusions: to solve the problem in our current GEM IPO, such as the High IPOunderpricing and earnings management, we improve the issuance of securities regulatoryapproach, establish a scientific issue audit system, improve the the civil damages legalsystem of information disclosure, and improve the disclosure of information, establishand improve the market-oriented pricing mechanism in the true sense of the fourmeasures.