The IPO Effect Of Chinext In Shenzhen Stock Exchange

October30,2009, the first28companies listed on ChiNext in Shenzhen stock exchange, which means after10years, the Chinese Growth Enterprise Market was born. The bom of GEM, not only support the financial ability of small and medium-sized businesses, but also improve the multi-level capital market system of our country.However, one year later of listed on, over30percent of these companies’ operate performance decline, resulting some investors in losses, and such phenomenon is called "IPO effect" in academic. The existence of the IPO effect will affect the healthy development of the GEM market; meanwhile the investors will also face a higher investment risk. Since the1990s, many scholars have focus on the IPO effect, remaining fruitful researches. The IPO effect has also been confirmed in many countries. But, there were no published papers to prove whether the IPO effect existence in the ChiNext of Shenzhen stock exchange.This paper intends to choose the first28companies listed on ChiNext as the research objects and the weighted average of return on assets as the measure of operate performance, using direct comparative method and matching T inspection to analysis the operate performance of sample enterprise pre-IPO and post-IPO. In addition, this paper will divide the samples according to different factors, and then use independent T test sample analysis to test the IPO effect of different factors.The study fond that:the GEM market in Shenzhen stock exchange exist IPO effect overall, different industries and different areas are both not significant of IPO effect; the participation of venture capital is significant when the sample companies listed on one year later but not significant after listed on two years later.