| IPO method and pricing mechanism have been hot topics in the research filed ofprimary security market. Whether the issue price is reasonable determines whetheroptimal resource allocation can be achieved in the security market. Since our countryimplemented the inquiry system, the degree of marketization of the IPO price levelhas been improved, but the phenomenon of high P/E, break and frequently changedperformance is still exist. In order to solve these problems, the new roundmarket-oriented reform of the security issue system has been officially launched. Howto determine the IPO price more reasonably and how to play the security market a roleto the allocation of resources, are the most concerned and the core problem in thepresent China’s capital market.This paper first makes a brief review on the development of IPO method and theaudit system. And then analyzes the current theory about market pricing mechanismconnotation. Then the paper analyzes the influence of the main IPO methods on themarket-oriented pricing mechanism. We put the emphasis on the approval stage,especially on the role that the “Green Shoe†mechanism has played by citing theexample of the Industrial and Commercial Bank of China and the Agricultural Bankof China. And explore the role and the actual effect on green shoes mechanism in theprocess of IPO.Combined with current regulatory thinking and the latest introduction of thenormative documents, point out that the inquiry system is still unresolved problems,and proposed the establishment of the evaluation of the new measure ofmarket-oriented pricing mechanism. Rethink of the market-oriented pricingmechanism, and thus that the real market pricing mechanism should be back to thedesign of the IPO internal inquiry mechanism, the pricing of IPOs truly reflect thecompany’s intrinsic value and growth value. And learn from current methods andsystems of developed capital markets issuance of new stocks to build a system of Chinese market-oriented pricing mechanism: establish and improve the constraintmechanism of the issuer and underwriter; strengthen the management of the inquiryobjects, rationally determine the inquiry objects, improve the pricing constrainedmechanism; improve the management system of market-oriented pricing mechanismof the lock-up period; innovate issuing methods and strengthen the informationdisclosure system and punishment mechanism, and further promote market-orientedpricing mechanism from the perspective of issuing methods. |
