Research On IPO Pricing Method In Chinese Stock Market

As a important market of resource allocation,the stock market directs influence the efficiency of resource allocation. Listed company as the important part of the stock market, its persistent management and good rapid development direct impetus the stock market healthy development. As the fundamental part,its value immediately effect the investor's will,but the investment is one important part of the economic which conclude three parts,so the value of the listed company effect economic development. Reasonable price can also coordinate the relationship of the issuer,investor,security firm,so the reasonable of the price of the listed company has significant influence to the stock market. Through analyze the figure model of the company value and the factors which effect the company value ,this issue has got the most suitable model which fits for the Chinese market. Then combines with the market's own character and actual situation,we point the faults and disadvantages the administrative pricing have and analyze the neediness for the stock market. Next this article descript the underpricing for a certain, analyze what are the factors that cause this phenomenon. At last, with empirical analysis, this issue put analyses on the deviation and the underpricing, analyze what are the reasons that cause these phenomena, point out that these two phenomena are in necessary connection, they are not in contradiction. The article also show what causes the phenomenon that deviation and underpricing can exist at the same time is that the politics adopt pricing administration and supply administration method. These are the disadvantages that the administrative pricing way concludes. Through the article description, it also shows the way for the future reform.