The Study Of Reform Of IPO System

Since the establishment of China's stock market, because the IPO mechanism is unreasonable, there are many drawbacks in IPO process, such as risk-free arbitrage, a large amount of capital accumulation, price volatility, and unfair investment opportunities. It is difficult to adapt to the requirements of development of the securities market and to reform the existing system of IPO is imperative.In this paper, the purpose is to find the problems of IPO mechanism in China and to explore its deep-rooted reasons, put forward an effective solution.The first part is mainly to determine the focus of this paper and to analyze practical significance of China's reform of the system of IPO, to expound Domestic and foreign research.The second part compares the several existing mechanisms of IPO and analyzes the law of the evolution of trends over the world's major countries and regions.The third part summarizes the current status of China's stock market and reviews the evolution of China's IPO system. It elaborates control issue, issue pricing and distribution on three aspects respectively.The fourth part discusses the defects of IPO process and points out that at this stage the key question is that the level of IPO under-pricing is much higher than the international average. At last analyze its causes. To some extent, IPO under-pricing is the root cause of defects existing in the course of IPO.The fifth part, combined with China's specific conditions, make several recommendations on the defects existing in the course of IPO.