An Study On The Initial Public Offering Underpricing In SME Stock Market

Initial public offering underpricing is a world–wide phenomenon, but especially serious in China .Some Chinese scholars have done studies on china stock market on the basis of western theories, but they neglect the equity separation system .This paper conducts an empirical study after the reform of equity separation while still on the basis of western theories to see whether these theories have strong explanation on china stock market now. The study indicates that some theories still can not explain china stock market well. China stock market IPO underpricing may has its unique reasons, and it is better to solve these problems to push IPO underpricing into a reasonable extent.