Comparative Study On The Multiperiod Of GEM IPO Pricing Efficiency In China

Chinese GEM, having been launched more than two years. now has become an important part of Chinese capital market. Yet since the launch date of the GEM. it has been influenced by high IPO issue PE ratio and high rate of IPO underpricing. The IPO price efficiency of GEM has become the focus of attention in the theoretical circle.In this paper. on the basis of the related finance and econometrics theories, the GEM in IPO pricing efficiency of multi-period as the main line, the author makes an comparative analysis to IPO pricing GEM according to different classification. and tries to clarify the reason of differences according to different classification efficiency of IPO pricing. Finally the author does the empirical study on the influence factors of IPO pricing efficiency of Chinese GEM, and give the strategical suggestions on how to enhance the efficiency of the GEM IPO pricing.This article, first defining the efficiency IPO pricing, and then recalling the development course of the GEM, leads to the GEM now faces prominent contradictions, namely high IPO p/e ratio and high rate of underpricing of IPO. with two respectively of statistical analysis to find out the reason, namely the GEM in first and second market in supply and demand caused by imbalance in China. Then the author, by making the classifying comparing of industry, underwriter's reputation the market day in the four period, found that high growth industry with a low IPO price efficiency:the high reputation of the underwriter with a high IPO pricing efficiency; the IPO pricing efficiency will be higher in a cold market than in a hot one. According to these comparations, the author reaches the conclusion that in general, a year pricing of GEM IPO pricing efficiency is the highest in our country. Through the multi-linear regression analysis in the influence factors of GEM IPO pricing efficiency in China, find that the main influence factors of GEM IPO pricing efficiency are the market index, underpricing ratio and the growth rate of return of net assets.Finally, this paper put forward some policy Suggestions in order to enhance the efficiency of the GEM IPO pricing in China. Government should gradually promote the process of transforming authorized system to registration system.complete the information disclosure system and the sponsor system, increase the circulation stock ratio, and bring in the green shoes mechanism when issue etc.