The Timing Fluctuations Of The China's IPO Market

This paper makes an empirical test of the timing volatility of IPO in China based on the date of China's Shanghai and Shenzhen stock market in January 1992 to December 2009,which include 1707 companies as a sample. Through the empirical test, the paper describes the characteristics of China's IPO market fluctuations and gives an analysis of several theoretical hypothesis on the applicability of the IPO market.This study focuses on the first day of IPO issuance volume and volatility of underpricing, and the relationship between the two time series._By Spearman correlation test and VAR model, we obtain a series of conclusions. First, there is a fluctuation phenomenon of underpricing and IPO volume, while the volatility of underpricing is mainly reflected in the monthly arithmetic average indicator. Second, the IPO market exists hot issue market phenomenon, and this phenomenon happens periodically. Third, the arithmetic average of the first day of IPO underpricing and the number of issued two monthly time series has a strong correlation, and in the medium to long term holds, underpring guides the number. Fourth, the "opportunity window" hypothesis, information asymmetry hypothesis and investor sentiment hypothesis consistent with empirical test results, in which investor sentiment hypothesis may better explain the timing of the IPO market fluctuation.Finally, policy advice are given based on the combinational analysis of the empirical conclutions of this paper and the status of the Chinese stock marker.