The Research On The Efficiency Of IPO Pricing Under The Inquiry Mechanism In China

Asset pricing is the core of the capital market in which the IPO pricing of the financial economics becomes the hot topic.The rationality of the IPO has great impact on the function of optimizing the asset allocation of the capital market.With the establishment of the Shanghai Stock Exchange and Shenzhen Stock Exchange in the early 1990,the stock market gets the rapid development and play more and more important role in the economic development.But the low efficiency of IPO pricing in our capital market is more serious than American and European capital market which damages the financing function of the stock market greatly ,reduces the efficiency of resource allocation as a result of wasting social resources and harming the investors.So considering what it describes above, the paper will have researches on the efficiency of IPO pricing under the inquiry mechanism.The content of the article is as follows.Firstly, it details the popular IPO pricing mechanism in the world,including fixed-price mechanism ,the aution mechanism and the mechanism of cumulatine bidding inquiry ,compare their merits , characteristics, scope of application as well as the shortcomings and illustrats the processes and characters of the existing mechanism of the inquiry .Thirdly, referring to Bruno Biais and Anne Marie Faugeron-Crouzet model with combination of the reality in China ,it gets the derivation and analysis from the theoretica perspect about IPO pricing efficiency under the the mechanism of cumulatine bidding inquiry. As a result,we find that the mechanism of cumulatine bidding inquiry has the problem about the low–efficiency.Finally,the paper analyses the factors which restrict the efficiency of the IPO pricing,including the lack of internal mechanism and imperfect on the capital market. So we should strengthen the pricing power of the broker to improve the level of the inquiry mechanism.At the same time, we offer conditions for appropriate IPO pricing by improving the quality of the listed company, guiding the rational investment and optimizing the external environment..