The Effect Of The Issuing System On The Initial Public Offering Under-pricing

The Initial Public Offering Under-pricing exists in the security market of China for several years. The so-called IPO Under-pricing is that the issuing price is lower than the marketing price, or that is the issuing price is lower than the closed price in the first day of going to the market.The Initial Public Offering Under-pricing exists all of the world , not only in China, but the most important problem is that IPO Under-pricing is serious in China than other countries, this phenomenon exposes many problems such as the issuing system, investors and so on. The author has read many books and journals about IPO Under-pricing and wants to explain this phenomenon, especially wants to explain it by issuing system.First of all, this paper makes a study of IPO Under-pricing in the international and domestic stock market. In the second place, based on the data of the latest 10 years, the author carries on the positive research on the influence factors of the IPO Under-pricing, applying the plural linear regression modal. The result shows that the issuing system, the rate of turnover in the first day and other factors have good reasons for explaining this phenomenon. Finally, the author gives suggestion to all the participants relevant to the issuing market.