| The current economy is facing a rare perplexing situation since the founding of new China, in which the shift period of the economic growth, the throes of structural adjustment and the digestion period of stimulus policy in the early stage combine to the current periodic economic characteristics of “the superimposition of the three phases” which mainly appears in the market as the flagging real economy. The popular IPO market and the real economy in China are in stark contrast. The unbeaten myth of new shares has been a perfect interpretation of the capital market in our country. Thus, the reason that leads to high investment sentiment in primary market during the economic downturn period in China has aroused widespread concern.This paper, set in the special economic period of “the superimposition of the three phases” and current situation of capital market, studies some relevant problems of IPO pricing regulation. Firstly, this thesis will seek for the reasons of the unbalanced IPO pricing regulation supply through the analysis of stochastic frontier of IPO pricing efficiency, game analysis of the regulatory interests, and the impact analysis of typical cases on different periods of China's IPO underpricing and the stock index. Then, this paper attempts to construct IPO pricing supervision system reform scheme from the perspective of law and economics and countermeasures research theory, that is to say, this paper will adopt methodology problems countermeasures to build IPO pricing regulation system with strong manipuility, low implementation cost, and higher efficiency of supervision from the aspects of system, law, hardware and software, etc.Firstly, the experience of IPO pricing in foreign mature market is analyzed and summarized. In the United States, pre-IPO companies resort to the pricing method of book-building system in order to finish the whole IPO process including the construction of IPO consultant team, due diligence, counseling registration, I pricing issue and other aspects of the price supervision system. And the most important part in this process is the proper supply of information disclosure system; in Germany, the main influence of pre-release system of IPO pricing system is that the transaction price is determined before the IPO inquiry, which means the underwriters' pricing authority is constrained by the market and regulated by legal supervision, improving the accuracy of the IPO pricing and increasing the information symmetry of the IPO pricing process. And the core of efficient supervision system of pricing system in Germany is its rich supply of the market pricing system. Meanwhile, pre release system improves the investment environment, and strong rational investment atmosphere enhances the resource allocation ability of substantial capital market; the highlight of Japan IPO pricing supervision system is the reform of the registration system along with strong punishment scale, reducing the access threshold and the cost of non-compliance of the regulatory authorities to ensure that Japanese supervision department successfully transfers the regulatory focus from supervision in advance to supervision in process and afterwards, which greatly reduces the cost of supervision and improves the supervision efficiency.Secondly, this paper concludes the impact of supply imbalance of IPO pricing regulation system in China, mainly including five aspects: the impact on the capital market, the impact on investors, the impact on the listed companies, the impact on the underwriters and the impact on the financial credit system. The impact of the supply imbalance of IPO pricing regulation on capital market includes the dilution of the IPO market capacity so that the interests of most small and medium investors damaged; the impact on investors includes passive dislocation pricing which leads to investment decision-making errors and direct economic losses caused by the fall of share price after the secondary market circulation; as for listed companies, the financing platform of fair competition is broken and the public images of the listed companies are damaged because of the illegal issuers; the influence on underwriters includes urging underwriters to subjectively enhance the IPO underpricing rate to guarantee the success of IPO and the power rent-seeking will be informed as the compensation for the loss of institutional investors caused by asymmetric information; and the impact on the financial credit system including the weakening of the supervision function of the sponsor, the threat of regulatory integrity, the underwriters undermining the integrity of the seller and the buyer, and other intermediaries making the distortion of basic information.Thirdly, the empirical analysis of the influencing factors and the pricing efficiency of IPO through stochastic frontier approach(SFA) is conducted in this paper. In terms of financial factors, the profitability of new share(EPS) has always affected the formulation of its issue price, and net assets per share(BPS) and the asset debt ratio(ADR) are negatively correlated with the issue price. As for the impact factors of the issue, the total issued share capital of the company(TSB), the overall market environment(MKT) and issue cost per share(IPOF) are positively correlated with the IPO pricing, and IPO scale(IPON) and IPO pricing are negatively related. In the efficiency analysis of full sample of IPO pricing from 2006 to 2015, the IPO pricing efficiency is 83.63% through stochastic frontier method(SFA), indicating that China's reform of IPO pricing system in the primary market has achieved a periodical victory and the book-building system is actually efficient.Fourthly, the paper analyzed the institutional supply of IPO pricing regulation and the strategic choice of the game party using Nash equilibrium theory of game theory. On account of that IPO issuers and underwriters choose low underpricing probability ?, the possibility of supervision department providing proper institutional supply strategies and the possibility of additional regulatory costs C is inversely correlated while positively correlated with the reward income ? of the supervision department in the period of smooth issue market and the punishment cost ? of the supervision department during the turmoil period of issue market, and most importantly C<?+?. In the regulatory aspects of China's IPO system, the supervision and assessment mechanism for the supervision department is relatively weak. At first, the regulatory authorities perform their duties with low transparency so that the public can not realize the cost and efficiency of supervision from the information published by the regulatory authorities; besides, the large number of new shares issued belong to varied industry classification make it difficult for regulatory departments to perform their duties and cause high additional regulatory costs C; in addition, the staff salary of the regulatory authorities is basically fixed for the membership and performance evaluation and incentive measures are hard to combine, which leads to the lack of enthusiasm of the main implementation body to perform their duties and the probability of due supervision(moderate supply system) is far less than that of dereliction of duty(insufficient supply system). Therefore, the game equilibrium of current IPO pricing regulation is mainly second type of equilibrium, that is, the regulatory authorities take the regulatory behavior of inadequate supply system while the issuer and its underwriters are high underpricing.Fifthly, the paper concludes that there are common problems in the current regulatory system through case analysis. Through the case analysis of issue of HTC warp, we can find that a variety of “window guidance” and macro-control means reflect the problems of supervision system on the strategic level. Pricing regulation problem is only one point of the regulatory situation, and the overall control of the capital market is the starting point for the government to develop policy. Over the years, the regulatory policies of capital market, whether to frequently stop IPO, adjust stamp duty or inhibition rate, or establish circuit breakers, are all palliative system supply. And the motivation of those policies is to solve the outstanding contradictions in the past or current market, which lacks of macro layout for the capital market. This supervision approach of find-it and fix-it mentality is likely to result in the embarrassing situation of “solving one problem only to find another cropping up”. Therefore, the government should base on prevention in view of the capital market supervision system supply and attach equal importance to the reform strategy and tactics. At the same time, the case also reflects the loopholes of information disclosure system, that is, the issuers adopt incomplete disclosure strategy by the use of loopholes in the system, which severely damaged the interests of investors because of the significant reduction of price earnings ratio after the primary market transiting to the secondary market.Finally, the paper puts forward some feasible countermeasures to strengthen the supervision and control of IPO in our country. With regard to the reform of the distribution system, the government can reduce the restriction of the original issue way for pricing efficiency through market-oriented distribution; in order to strengthen the information disclosure system, the securities law should be revised, which can improve the status of information disclosure, the quality of disclosure and punishment criterion of illegal disclosure and transform the supervision center from supervision in advance to supervision in process and afterwards; at the aspect of development in the regulatory way, the establishment of local government information disclosure and verification mechanism is needed to explore the way of industry association pricing regulatory; as for the advance in the informatization of IPO pricing supervision, IPO pricing network information system related with agency credit information system should be developed. In a word, the institutional supply can fundamentally improve the pricing system of China's capital market through focusing on the adjustment of the regulatory strategy with the system framework and rules of the legal system, along with broadening supervision way in all directions. |
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