The Reform Of Stock Issuing System, IPOs Underpricing And Factors Analysis

The reform of stock issuing system which is directly related to the efficiency of primary market is one of the core questions of institutional constructions of in Chinese securities market.Three years have passed since the market-oriented checking system was brought into effect.By our positive analysis, we find that in despite of still very high IPOs underpricing,checking system , compared with approval system,can reduce the degree of information asymmetry and IPOs underpricing.and depress the volatility of the first day return of stocks being listed to a great extent.which can improve the efficiency of securities market.According to the theory of IPOs underpricing,I thorough analyzed all kinds of factors which may affect IPOs underpricing.Using the method of multiple regression,I find that with the reform of stock issuing system.these factors change their effects.Signal theory .winner's curse and information revealment theory of bookbuliding can partly explain the high IPOs underpricing in our country.Moreover.the state of faultiness and transition in stock issuing system contribute to the underpricing phenomenon.At last,I analyse the defects in current checking system and bring forward some advices to further reform the stock issuing system.