| As global resources migrate to China, investors grow more comfortable investing locally, Refering to the list of top 20 largest IPOs in the world in 2006 in Global IPO Trends Report 2007 offered by Ernst & Young, on, there are five IPOs from China, one of them from Shanghai Stock Exchange. What's more, the number of IPOs in mainland exceed 400 since April 2001. In the boom of IPO market these years, IPO underpricing which fluctuated with many influential factors, provided sufficient sample for the research in the dissertation.IPO underpricing is popularly an existence in all the stock markets of the world; it reflects the pricing efficiency of the capital assets, the allocation efficiency of shares, and the information efficiency in the IPO market. The dissertation studied the degree of IPO underpricing in China and its influential factors by empirical analyses. Based on the sample including listing companies issued since April, 2001 in Shanghai Stock Exchange and in Shenzhen Stock Exchange, the paper depicts the general degree of the IPO underpricing in the recent years, different degrees of the correlation between IPO underpricing and influential factors in different environments, then proposes and demonstrates hypothesis that environment changes affluence the IPO underpricing. Based on the analysis above, the article will provide some suggestion at last.The conclusions include: the change of issue mode and supervision mode in 2004 and 2005 does not influenced the IPO underpricing degree generally in China; the resettle of Shenzhen Stock Exchange in 2004 moderated the underpricing in the Shanghai Stock Exchange, even in the whole stock market in China. We suggest that big issues in Shenzhen Stock Exchange should be limited, while big ones in Shanghai Stock Exchange should be encouraged. What's more, the reformation of the supervision system should be implemented to improve the efficiency in the stock market of China. |
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