A Study Of IPO Underpricing In Chinese Stock Market

Analysis indicates that IPO underpricing is a common phenomenon all over the stock market of various countries. But compared with stock market of developed or developing country, the degree of IPO underpricing in our stock market is all quite serious. It has interfered the healthy growing up of the Chinese stock market, even endangered the development of national economy. The meaning of this article lies in: By analyzing the IPO underpricing phenomenon in Chinese stock market, to find the main factors influencing the IPO underpricing and the main reason which causes IPO to be underpriced, then to put forward the corresponding suggestions to reduce the degree of IPO underpricing.The content of the full text is divided into five chapters:Chapter 1 the introduction which introduces the research background of this text and research meaning, then it introduces the research object and research methods. Finally it introduces the distinguishing features of this article.Chapter 2 Research review introduces the models of IPO underpricing put by foreign scholars, and then puts forward the evidence of IPO underpricing, finally introduces the domestic and foreign scholars' study on EPO underpricing in Chinese stock market.Chapter 3 experiential anaysis adopts many kinds of methods to study the IPO underpricing in our stock market, the put forward three conclusions that answer the following three questions: what are the main factors influence the EPO underpricing; what is the reason causing IPO to be underpriced; how information asymmetry influences the EPO underpricing in Chinese stock market.Chapter 4 conclusions and suggestions briefly conclude the conclusions brought up in chapter 3, then put forward corresponding suggestions to reduce the degree of EPO underpricing: Setting up short sales mechanism; Reforming the offering way of the new issues; weakening the regulation of offering price by China Securities Regulatory Commission.Chapter 5 Concluding remarks summarize the text briefly, and point out the places that need to be studied further.