Ipos Of China's Capital Market Efficiency Empirical Research

With its fundamental functions of price finding,information exposure and resources distribution,the capital market keeps playing an important role in the Chinese social and economic development.Efficient IPOs is the premise of fulfilling the vital functions the capital market.Therefore,the efficiency of IPOs has been the central topic to financial economics and has been greatly noticed by the relative government's departments and the academic field.The thesis starts from the overall definition of IPOs.The thesis goes on to make a systematical analysis of the efficiency of IPOs during the process of systematical transition, discuss the main factors of it as well as its reaction mechanism so as to offer the theoretical background and policies' advices for the improvement of the IPOs' efficiency.The research is based on the study of the information efficiency of IPOs,operating efficiency,the initial and long-term performance of IPOs and the efficiency of the distribution of resources. With the testaments methods like SFA and multiple regressions,the research is under the support of the most forward theories of the subject.The main matrixes for theoretical analysis used in the paper are:Aigner-Lovell-Schmidt(1977) matrix for the study of the information efficiency of IPOs,the progressive multiple regressions matrix for the study of the rate of price repression of IPOs,the BHAR matrix for the long-term performance of IPOs.The leading achievements and conclusions of the paper are the followings:1,The rate of underpricing of IPOs can not examine the efficiency of IPOs accurately and overwhelmingly.IPOs efficiency must be scientifically defined in terms of information efficiency,operation efficiency,the short-term and long-term performance of listing of the shares as well as the distribution efficiency of recourses.At the same time,the relative and reasonable testing criteria should be settled down.This is the justified way to present scientifically some theoretical support,documentary arrangement and policies advices.2,The pricing of IPOs in China is far away from being low.Information Asymmetry and the irrational investors lead to the noise deal of the IPOs initial time of listing in the secondary market,the conformity behavior and the financial speculation.These are the reasons of high rate of underpricing.3,The issuing and listing system is one of the leading reasons of the deficiency of China's IPOs.Market-oriented reforms must be insisted so as to reduce the asymmetry of market information,increase the rationality of investors,take relative fairness as the guidance,gradually change from the pattern of "government-oriented supervision" to the pattern of "market-oriented supervision",to realize the Pareto improvement.The price controls and quantity controls should be broken to avoid the X-deficiency of resources distribution and the partial losses of general social welfare.The continuity of the system should be sustained while avoiding frequent changes of the decisive issuing systems to offer the participants of the market an anticipation of stability and strengthen the power of the system.The purpose of the changes of the Chinese securities issuing systems is the heteronomous registration while the core of registration system is the emphasis of the information exposure.It actually reflects the freedom of market economy,the free participation of all the subjects as well as the regulation and efficiency of the government's management of economy.