Study Of Short-run Price Behavior For The Initial Public Offerings (A-Share) In China's Securities Market

New Stock Issue, referring to the first issuing of a company's common stocks to the general public and their first trading at securities exchange is an extremely important step in bridging the first grade and second grade stock market. In this paper, from a common investor's viewpoint, the author analyses the phenomena of new issues' (A-Share) short-run price-setting and studies the mechanism involved, that is, to discuss the proofs and reasons for how new issues' low price resulting in later high initial return in China.The characteristics of China stocking exchange and the gradual process of the issuing principles of new stocks are introduced in advance and then the importance of selection and accuracy of research sample and result, caused by the organization system of China's stock issuing market, the volume management principle, the marketing assistance principle, the verifying principle, the selling principle, the pricing principle and the change of issuing way involved are put an emphasis on. Here the research sample of new stocks(A-Share), issued and marketed in Shanghai Stock Exchange from 2001 to 2002 are defined by synthesizing all of other elements.The internal and external elements are chosen according to announced information such as the booklets of directions to reuse capital by floating shares. By the delicate mathematic means, an analysis of the main constructure of new-stock-issue prices and the eighteen factors, new-stock-initial-return and the twenty-five factors, an analysis of the single factor and the testing of the verhemence, an analysis of various factors by frequent regression are performed in order to donate notable testing models and reveal the relations of new-stock-issue-price and company scope, profit power, the rate of new-stock-initial-return, that of on-market-change-hand rate and that of winning.The essay further goes to the bottom of China's Securities Market in order to completely explore the system and market characteristics and interest relation between trey single market finuciple. And it essentially amounts for the prying of new short-run securities and the principles of its functions. Then through the ecnomical analysis of the performance for rent-seeking of the stock issuing market and the choices of each principle of securities market related to information unsynu estoy, the essay demonstrates the cardinal reason the oringinally issued securities have comparatively high rate of return and concludes that it lies in the system and funtion of China's Securities Market.This paper finally studies the inspiration that the research of new stock short-runprice beheavier has made for the development of China's stock market. By the discussion of the "marketing ration", the formulating principles of new stock price in the future circulating transitional period, and the conditions of changing "Checking System" to "Registry System", it emphasizes the marketing construction of new stock issuing system; it emphasizes the use of marketing methods in order to improve the supply-demand relations, and balance the excessive speculation; it emphasizes the importance of market measure in counteracting excessive speculation by effectively improving the supply-demand relation, the importance of regulating and raising the action ability of the market main body, the necessity of governmental funtion transformation and the completion of management structure in listed companies.