The Research Of The New Stock Issuing System Reform's Influence On The IPO Under-pricing

The IPO (Initial Public Offering) Under-pricing is that the issuing price is lower than the marketing price, or that is the issuing price is lower than the closed price in the first day of going to the market.The IPO Under-pricing exists all over the world,but it is much more serious in China than in other countries.By deep learning and reading of books and journals about IPO Under-pricing, the author wants to find the new stock issuing system reform's influence on the IPO Under-pricing and analyses the factors impact upon the IPO Under-pricing.First of all, this paper makes a study of IPO Under-pricing in the international and domestic stock market. In the second place, the author looks back on the reform of the new stock issuing system, including the split-share reform, the system for examining and verifying the issuance of securities, the issuing way and new stock pricing mehtod. Then, based on the data of A-shares in Shanghai Stock Exchange from 1992, the author dose the variance analysis of the split-share reform and the new stock issuing system reform's influence for the IPO Under-pricing, the result shows the IPO Under-pricing is influenced differently by the split-share reform and the new stock issuing system reform. After that, the author does regression analysises of the the IPO Under-pricing influence factors including the system factors and the non-system ones. The result is that the rate of turnover in the first day, the issuing scale, the p/e (price/earning) ratio, net assets value per share, the half market-driven issuing way and system of approval have good reasons for explaining this phenomenon. Finally, the author makes a conclusion based of the demonstration research and gives some suggestions to the new stock issuing system reform.