New Issues Under The Underpricing Of Institutional Change Research In China

IPO underpricing is all the issue of the securities market, China’s securities market shares particularly high degree of under-pricing. Under-pricing high rate not only brought about speculation, to attract out-of-order flow of huge amounts of money, and intensify the contradictions of market participants and other practical problems, but also fundamentally hinder the allocation of resources of capital markets function. Domestic and overseas IPO on the theoretical study has been more mature, but are based on mature markets. China’s capital market as a result of liquidity constraints, institutional investors, such as the development of immature reason, these theories can’t fully explain China’s high IPO under-pricing in order to guide the rate of China’s capital market system.In recent years, the new distribution system reforms are growing, but there is a disputetowards the direction of reform, including the existence of many of their ideas so that theexecutive board system regress. Throughout the development of China’s distributionsystem in the past two decades, to go from the Chief of the road to the market, releasegreat benefit of a policy. In the current moment, whether the reform of the system toresolve the issue of IPO under-pricing, the extent to which can be resolved, the issue ofthe three components of the system on the impact of IPO under-pricing Which major?This article attempts to answer these questions via research to IPO under-pricing ofChina’s empirical.China’s IPO system mainly including three aspects that are the access system,the distribution system and the pricing system.The access system changes from the approval system into the authorized system, but underpricing is not improved; when became sponsor system, underpricing is therefore continue to lower. Change in the distribution system, the secondary market offering is a policy of retrogression, and IPO Underpricing under this policy althoughhas the influence of apparent ease, itoverall seems the continuing reform of the distribution methods to reduce the degree of IPO Underpricing. Underpricing problem perspective, changes in IPO pricing system before the Inquiry system there is no noticeable results. It plays a significant role in the establishment of the Inquiry system for the mitigation of IPO Underpricing.