An Empirical Analysis On The China A-stock Market Initial Public Offering Efficiency

Initial public offering (IPO) efficiency, is always the very important issues in research field. China current approach to the issue of Inquiry issued remains high initial yield problems, which shows that the distribution of the efficiency of the market operation and the allocation of resources remains low. The stock market environment in 2007 is much more stable than ever before, the paper chooses the cooperation and analysis the efficiency.By the definition of efficiency, I select the initial yield as a standard of IPO issuance the efficiency. Compared distribution in Hong Kong with China's mainland distribution, the matter of the low efficiency has been found, then select the 2007 All IPO issuers as a sample, use EVIEWS software to analyze the data.It is founded that the financial data and the stock market data can not explain the initial yield data by anglicizing 2007 all IPO companies, of which only between the initial success rate and the yield exists significantly correlation, the results of the case analysis showed that a higher success rate in the IPO makes the initial issuance of stock was lower than the annual average level. Because of the placement of limits, the existence of the call-back mechanism is not effective in the improvement of market efficiency. With the opening of the market today, it is very important to increase the supply of the market, change the structure of the institutional investors, improve the investors' concept and then the IPO efficiency would improve.The increased supply would make the initial yield decline. The constraining factors of China stock market's "dual structure" still exist; the existing way of distribution restricted the efficiency of the IPO issue. The key to change the inefficiency in IPO issuance is raise the level of the market, while strengthening supervision and management departments of supervision, supervision and management to ensure that appropriate elastic from the formulation of the price to the value realizing, Hong Kong mixed Inquiry issued shows that the call-back mechanism and the over-allotment option increase the underwriters and investors speculation constraints. Only in this way can reduce the initial listing yield, stable markets, and enhance the efficiency of market operations.