The Price Behavior Of Gem Ipos In China

In this paper,through doing research of GEM's underpricing phenomenon and its middle -run performance to find the main factors influencing the IPO underpricing and middle -run performance.In order to make China's stock markert develop healthily,find out three problems which need to be solved.In this paper, using the initial return to measure IPO underpricing , by the analysis of the 65 stocks which have been listed ,the conclusion is : GEM in China has serious IPO underpricing, Subscription successful rate and the shares trunover on first day are main factors influencing the IPO underpricing. In the reasearch of middle -run performance, using the relative yield of stock price, by the analysis of initial launch of the 28 stocks in 100 valid trading days,build investment portfolio of new shares to consider different types of short-term and middle-term relative yield rate, and do regression analysis.The conclusion is: GEM's IPO short-run performance is less obvious weak, the middle-run performance is very strong, which is different from the IPO long-run weak performance in foreign country. First day's return, net asset per share's growth rate, net profit's growth rate of excluding non-recurrent income and asset liability ratio are main factors influencing the IPO middle-run performance. Finally, a large number of speculative trading in GEM, the separation of GEM and Main Board, a better measure of GEM's business and operating model are needed to solved by ralated department immediately.