Study On IPO Underpricing Of China

It has been nearly sixty years since the study on anomality of IPO which mainly focused on three areas: IPO underpricing; IPO hot market; IPO long-run underperformance. I have found the logics between the three areas: IPO hot market result in IPO underpricing and this finally lead to IPO long-run underperformance. In this thesis I chose IPO underpricing as my study object. First I studied the research Outcome of scholars both from home and aboard, and found that IPO underpricing is a common phenomenon in all markets. There are many kinds of theories for explanation of IPO underpricing. Some scholars learn from the traditional financial relationship between risk and earnings point of view, some scholars from the agency problem, the mood of investors, such as behavioral finance point of view for analysis.The early China's IPO underpricing study was the description and explanation of the phenomenon, but to explain the factors involved in most of the relevant foreign research methods, and most of the Western theory of underpricing verification, especially the asymmetric information theory. System for China's securities market factors and the development of China's stock market is rarely associated with the special. In this paper, to some extent, Western scholars agree that the theory of IPO underpricing, but as a result of China's stock market and the stock market in Western developed countries have a great maturity gap, so I think that the Western theory of EPO underpricing in China can only partially explain the high IPO underpricing phenomenon.In the paper, assimilated previous study results, combined with the specificity of China's stock market, respectively, from the IPO's pricing model, pricing mechanisms and pricing process of stakeholders and the game, such as behavioral finance perspective, I give reasons for China's IPO underpricing.Finally, given the status of our stock market, I give my suggestions.