Research On Ipo Under-pricing In The Issuing System's Process Of Change

IPO means the initial public offerings, limited companies are entrusted to investment banks and other intermediary agencies to sale stocks to public investors for the company to get capital or the first time in the stock market. IPO's success or failure is very important to the company's growth and development. For investors, IPO issues to investors more shares of supply, so that the outcome of China's economic growth has been more fair and equitable sharing through the stock market. In the initial public offerings market, the phenomenon of IPO underpricing is commom, that is, the pricing of IPO shares below the market value of stocks,and the offerings has been priced significantly lower than the first day of IPO's closing price. IPO underpricing is a manifestation of the stock market inefficiency, which allows stock issue price does not reflect the company's true value,not conducive to rational allocation of resources and investors rational decision-making, and disadvantages to the stock market's stability and development.IPO underpricing phenomenon is widespread around the world, butit has performed particularly conspicuous in China's stock market. Many scholars in the West have done more in-depth research on IPO underpricing. As the Chinese stock market start late, not well-developed, coupled with the presence of special historical factors, IPO Issuing system has undergone several changes. In view of this, this paper research on changes of the IPO process to examine the issue of IPO underpricing.The article is divided into four chapters: The first chapter describes the theoretical basis for institutional changes and the IPO underpricing, as the theoretical basis of the later research. The second chapter researchs on the the Issuing System changes of the IPO process, analyse the changes of China's IPO system. The third chapter: first,describes the relationship between the IPO underpricing and the the Issuing System changes; then verify the Issuing System changes'influence on IPO underpricing; at last, analyse the efficiency of the Issuing System changes and problems. The final chapter, introduce the foreign mature markets'experiences and give policy recommendations to lower IPO underpricing and make stock market work efficiency.