Initial Public Offering Of Stock Inquiry System

Book-building, as one of pricing methods in IPOs, demonstrates the following advantages: price discovering, good relationship maintaining, and mechanism recovering. New regulations upon book-building from CSRC give an expression on Market-oriented reforms, but don't grant freedom to Securities on distribution of shares, which is still semi-bookbuilding. While in the U.S., South Korea, Germany, Taiwan China and Hong Kong China, freedom on distribution of shares are common.It is a key element to provide incentives to Institutional Investors so as to make them give true information, which details in low price and more shares. Low price cannot be an incentive in the rule that the price must be the same in one IPO. The other choice left to be the only choice——discriminative quantity. It can be an incentive as a result of significant roles of price-offering from Institutional Investors.In essence, IPO is a contract between issuers and investors under regulations. As a result, it is necessary to regulate the price and quantity of new shares in respective of market orders. Meanwhile, regulating is not intervening. Moreover, Economists hold an opinion that it is essential to grant right on discriminative quantity to Securities because of Efficiency. However, it cannot be accepted to Jurists in that Efficiency is just one of values of law. Jurists believe that the only reason to give such a right to Securities is that the right can achieve the goals of law, which is values of law. Such a right helps our Capital Market construction.The freedom also faces risks that Securities abuse their rights. The only way to solve the problem is to strengthen regulation and to set strict liabilities.As a result, the dissertation can be divided into five chapters.The first chapter defines basic issues in this dissertation, which includes pricing methods in IPOs, book-building method and other methods included.The second chapter demonstrates book-building rules in other countries or regions, which is the U.S., South Korea, Japan, Germany, Hong Kong China and Taiwan China in detail.Chapter Three reveals that freedom of distribution of shares is the core element in Book-building, which influences the functions of the system.The fourth chapter gives reasons to freedom of distribution of shares from the point of law.The last chapter proposes suggestions on risks from such freedom, which is to strengthen regulation and to set strict liabilities.