China Stock Offerings And Pricing Research

Along with the development of Chinese security market, the scale of issuing market is increasing. Driven by benefit, issuers, investment banks and investors pay more attention and money to issuing market. Considering the construction of the stock market and macroeconomics, the government also promotes the corporation and issuing of enterprises. IPO then becomes an important constitution of social economic activities. The study of IPO and pricing problem in this paper extends in two aspects, the first is the aspect of enterprise, i.e. why the enterprise issues and how to decide the issuing price; the second is the aspect of investor, studying the market behavior of IPO. The main body of this paper is made up of four sections. The first part is introduction, introducing the development of Chinese stock market, IPO procedure, pricing procedure and issuing manner, and the supervision of government. The second part is the issuing motive and pricing decision of enterprise, focusing on the impact of government's policy and enterprises? benefit on the issuing decision of the enterprise. The third part is to analysis the data of Chinese stock market, study the underpricing phenomena of Chinese stock market, and analysis its cause. The last part is conclusion and policy advice. Policy advice includes: (1) Reduce redundant administrative intervention in issuing market. (2)Try on new IPO mode, which combines the publicity raising capital and publicity selling. (3) Develop Chinese investment bank industry, consummate the market agency system. (4) Consummate information disclosing system, improve the quality of information, and reduce the unfair trade because of information asymmetric.