The Research Of IPO Pricing Mechanism In China

In the international market, the research of IPO pricing mechanism has always been one of the hotest topics in the stock market. As an emerging and transitional stock market, the development and reform of IPO pricing mechanism is still subject to the industry's concern in China's.The rationality of IPO's issuing and pricing is related to the vital interests of investors in the primary market and the healthy and steady development of the secondary market. Thus an in-depth research of IPO pricing mechanism not only can help us understand and study the anomaly in the IPO maket, and improve the operation mode of capital and the efficiency of resource allocation in stock maket, at the same time, also can provide empirical evidence to the reform of IPO pricing mechanism in China.Based on the summary and review of the evolution of IPO's issuing system in China, the paper obtains the following conclusions from the comparative analysis on the IPO pricing mechanism between domestic and international. The current issuing methods and the current pricing modus of IPO have many problems which were waiting to be solved in China. The paper also conducts an empirical analysis on effect of the different issuing methods and the different pricing modus to the the efficiency of IPO pricing mechanism by single-factor variance analysis method respectively. The result is that: while the current IPO issuing methods and pricing modus have the historical progress in theory, and are in line with the direction of development and needs of the securities market, but compare to the issuing methods and pricing modus which have been used in securities market in China, the efficiencies of IPO pricing mechanism, undering the current issuing methods and pricing modus, are not better than before.In order to promote the deepening of the issuing system reform of the stock market in China, and improve the efficiency of resource allocation in the capital market, this paper argues that we can take the following measures,which include further improving the distribution system of the new equity issuing, establishing and improve the constraint mechanism on the broker in the process of the company issuing IPO, making effort to improve the existing accumulated bidding inquiry system to make it more comprehensive, promoting pluralistic development of IPO Pricing modus and so on,to promote the further development and improvement of IPO pricing mechanism in China.