Research On Behavior Of The IPO Under-pricing With The Transit Of Equity Circulation In China

With the development of capital markets, IPO underpricing has been gradually researched from the developed country markets to the developing country markets, revealed the phenomenon and cause description. Split share structure is very unique in the world trading system arrangements. Non-tradable share reform provides an opportunity to study response of Chinese investors to its innovative system, and the affection on the IPO underpricing. Under this background, the changes of IPO underpricing degree and investors valuation standards are worthy to research. Based on the change of the circulation of shares, the article makes some comparative analysis of dynamic behavior of IPO underpricing and the impact factors in order to establish comprehensive ties between the liquidity and the IPO underpricing.Selects data from 2001 to 2007 periods in Shanghai Stock Exchange and establishes multi-factor regression models to empirically research the IPO underpricing affecting factors. Research shows that, the undervalued issue price is a part of cuases, but the factors that determine the IPO underpricing differences are mainly from the secondary market. China IPO underpricing can not be fully explained by the asymmetric information model or the behavior of financial, but rather the two mixed stack. In addition, the study also finds that the non-tradable share reform has been impacting the investor's valuation standards. With the disappearance of the fault between the primary and the secondary market, investors will increase the proportion of revenue value and become more rational.