Study On The Ipo Pricing And Underpricing Of The China's Growth Enterprise Market

After ten years breeding, the China's Growth Enterprise Market (CGEM) was finally opened on October 30,2009. As an important component of multi-level capital market in our country,it undertakes the special tasks to promote the development of Hi-Tech and start-up enterprises, drive the adjustment of economic structure and the listing corporate structure of the security market. It is very imporant to maintain sustainable economic development.In recent years, the problems of Initial Public Offerings (IPO) pricing and abnormal high IPO underpricing in Chinese market have caused many scholars to pay attention.They mostly concentrated the research on the relations of issue price and the secondary market price. But, according to the abnormal fluctuation of stock price in CGEM, this paper points out that CGEM includes three important variables: stock intrinsic value, issue price and secondary market price. The research on relations of issue price and secondary market price is not sufficient to explain the price fluctuations in CGEM. At present, there is no document carry systematic research on the price and IPO underpricing of the CGEM, this paper studies it by carrying systematic research on the three important variables to find the reasons of the stock price abnormal fluctuation in CGEM and proposes reasonable suggestions to improve the CGEM.Chapter 1 introduces the research background, the meanings and purpose of studying, the research techniques and the content structure; Chapter 2 is a general literature review of IPO pricing and underpricing theory in the domestic and foreign; Chapter 3 analysis the CGEM in an all-round way from the three aspects of development process, the market characteristics and the market risks; Chapter 4 proposes a estimate value model of stock which is suitable to CGEM by analyzing the traditional estimate value model and the characteristics of CGEM. It also points out advantages and disadvantages of issuance and pricing method of the CGEM after carrying a comparative analysis on issuance and pricing method ; Chapter 5 uses the estimate value model of stock which is proposed in chapter 4 to calculate the stock intrinsic value, then with regression analysis and the stochastic front fixed price model analysis relations of IPO stock's intrinsic value, issue price and the first day closing price, and carrys on a thorough analysis on the reasons of IPO underpricing through setting up the multifactor regression model; Chapter 6 gives the paper's conclusions and proposes reasonable suggestions to improve the CGEM on the basis of overall analysis and system research of the CGEM.Through the system's analysis and empirical study, we know that the IPO issue price is obviously higher than the stock intrinsic value in CGEM, the primary market has price bubble, and secondary market's congenial behaviors which mainly cause IPO underpricing further enlarge the bubble, the higher secondary market's congenial degree is, the higher IPO underpricing is.