Empirical Research On The IPO Hot Issue Market In China

The Initial Public Offering (IPO) is a significant financing method for enterprise. The method is very important to enterprise and the secondary market,we should carry out systematic research on IPO.The Phenomenon of hot issue market is one of the three puzzles of IPO, and it has attracted many scholars'attention. So far, there is no conclusion that the Phenomenon of hot issue market is being in China. There are quiet few correlation researches and no convincing explanation. So it is necessary to study further.This article consists of two parts. The fist part is theoretical analysis. Fist, I introduce the present research and rationale of the hot issue market. Then analyze the two key aspects of hot issue market that are refers to the IPO issuing quantity and the first day return. The second part is empirical analysis. I use ARMA model and ADL model to examine the relationship between the IPO issuing quantity and the fist day return, the conclusion of the real examples is that IPO issuing quantity and the fist day return unable to pass the examine, and this result indicates that the phenomenon of the hot issue market is not exist in china's stock market. At last, this paper analysis to the conclusion based on our country's features and the actual situation.