Long-term Performance Of The A-share Ipo Shares. Sponsor Regime Empirical Research

With Chinese market economy passing each day, the capital market continues to grow, the securities market is from the start-up to being perfected. Issuing new shares system has been accepted as an important part of the securities market, it both involves the vital interests of China's hundreds of millions of shareholders but also is the focus of the securities market policy. This article captures this theme that one of China's securities distribution system is sponsor of new shares.we study the long-term performance of IPOs under sponsor system ; the other hand, according to the long-term performance of IPO stocks we reverse to certificate the characteristics of the sponsor and enhance China stock market efficiency with its reasonable proposals.In theory, the IPO's long-term performance is one of the three hot spots in IPO research field (stock market "hot" issuing, high IPO underpricing and long-term performance studies). 2000.1-2007.2 initial public offering shares have been listed on 600 samples, we study its three-year market performance after the listing. Using the stock held by the cumulativing returns (BHAR), the wealth factor (WR) results to discuss the influencing factors of the long-term performance of new issues, especially the sponsor system. We also make a new attempt to study the complex relations between long-term trend of new shares and the sponsor system.By calculating and statistical test we found that the performance of China IPOs is the stronger than the market index in the first year ; but the trend is weakening so that within a year and a half and two years it is weaker than the market index, followed by two years the buying hold is excessly revenue to -101.7%; the continuity of new shares started a stronger trend, slightly stronger than the market index movements in the third year. Basing on the empirical statistic, the article continues to analyse the influencing factors of the long-term performance of IPOs stocks by using factor analysis and regression analysis methods.the results showed that: Enterprise attribute factors includes the proportion of tradable shares, age, earnings rate per share, the market environment factors includes the current number of new shares issued, the hot and cold index of issue date.These factors have a positive effect on long-term performance of the new shares. Emotional factors includes the underpricing rate of stock listed on the first day, the success rate of new shares .These have a long-term negative effects .This paper studies the effects of the institutional factors(the sponsor system) , improving the issuance of related systems can influence the long-term performance of China's IPOs stocks. Finally how to improve the efficiency of IPO market, we makes policy recommendations: First, to improve the quality of listed companies; the second is to improve the IPO system; the third, perfecting IPO market information disclosure mechanisms; the fourth ,accelerating the development of institutional investors.