Research On The Underpricing Of New Shares In My Country's A-share Market

The IPO underpricing issue has been one of the most concerned ones in financial areas when the fact that IPO pricing was relatively low was found since 1969. As a new emerging stock market, China's high IPO pricing problem has drawn much academic attention from home and abroad. China's stock market, to a large degree, has been highly influenced by policies and speculation, mainly because of strict government regulation and investors'irrational behavior.To promote sustainable and healthy development of China's stock market, it is of great importance to deal with high IPO pricing problem. Though several rounds of reforms have launched, the level of IPO pricing is still excessively higher than many other stock markets. What is the main reason behind this problem? Take 1880 IPOs in A stock market from 1990 to 2010 as samples, this paper studies the IPO underpricing problem and IPO issuance system, and tries to give some recommendations. The structure of this paper is as follows:Chapter 1 introduces the background, importance, generalization and research methods of this paper, and the difficulties that may be encountered when conducting the research.Chapter 2 presents foreign researches of IPO underpricing problem, and introduces main IPO underpricing theories according to whether market participants can get access to asymmetry information. Comments on foreign theories and studies from home and abroad are also available in this chapter.Chapter 3 systematically analyzes China's IPO underpricing problem after a brief introduction. Development process of China's IPO is diagnosed to find the possible reasons of IPO underpricing in primary and secondary market in this chapter. Finally, influences of IPO market participants are analyzed.Chapter 4 researches the IPO valuation in primary market. Firstly, this chapter provides the research process of asset pricing from home and abroad. Secondly, detailed introduction of western valuation model and their suitability in China was given. At last, factors that affect IPO pricing are analyzed in chapter 4.Chapter 5 mainly studies IPO's price discovery mechanism, and introduces IPO regulation mechanisms and IPO pricing mechanisms around the globe.Chapter 6 deals with the regulation mechanism, pricing mechanism and pricing development process of China's IPO issuance.Chapter 7, by building a model, analyzes various factors that affect IPO underpricing problem from normative perspective, also analyzes China's IPO underpricing at different stages, and some recommendations are presented in this chapter.