Study On Pricing Mechanism Efficiency Of Initial Public Offering

Why is the same market pricing mechanism inefficient in the china stock market but high efficient in foreign stock market?In order to analyse this problem,first ,the process and characators of book building are given an account.And pricing efficiency of book building is defined qualitatively and quantitatively.And then,China stock market features are analysed by the roots of market-participating subjects.Analysing from listed companies,China listed companies have complicated equity structure and are lack of standard company management,and don't anounce their company-correlated information standardly, even cheatedly.With storical bad behavior,they take stock market as an place in which capital can be grabbed and kept and need not give investors divident .The investment subjects ,though they have had developed for 20 years,still have long way to go to be ripe and rational investors in their size and structure,investment principle.Although institutional investors have had much development ,Yet their quantity and structure,holding share size ,investment principle and special ability are incomplete compared with developed countries' institutional investors.In whole,China stock markets are still individual investors' arena,because individual investors are great and main group in stock markets.They have investment principle based on speculation and profiteering and have little incisive comprehension on stock market. Intermediate agencies of stock market are not developed and complete.They are deficient in efficiency of finding price,capturing and delivering information,especially in reputation,proffessional ability,which may leads to moral risk.Goverment acts as a particular role in China stock market .It is not only a supervisor but a greatest stock holder,to a certain extent,it is a greatest fund-raiser.It is deepest causes for inefficiency of pricing that...