The Research About China IPO Pricing Efficiency Based On The Condition Of The A Stock Market

Taking a wide view through China stock market, the condition of the market has been changing periodically, where the bear market follows bull market. Since split-share structure reform, capital market has changed climacterically. China stock market develops rapidly from"cold"market to a new"hot"market.Stock market is always the weatherglass or thermometer of the economy. Initial public offering (IPO) is very important to stock market, congenitally. Through the IPO process, pricing is the most important link. Pricing rationally is vital to listed company. At present, the research about IPO pricing efficiency based on condition of the stock market is meaningful. This paper uses two indicators, including IPO costs and after market price adjustment, to research china IPO pricing, based on condition of the stock market.This dissertation includes six chapters; the structure will be as follows:Part one describes the background, the meaningness and the reviews of the study, reseachs the A stock market condition of China and defines the"cold"market condition and the"hot"market condition in order to get the sample selection. Part two, defines, designs and forms indicators, methods and models; it gives evidence in different market condition in China's A shares markets for IPO costs which are divided into direct cost and indirect cost, and evidence about the aftermarket price adjustment, which is defined as the cumulative days before the price adjusted to the value of the shares. Part three sums up the full paper and makes a prospect.