Ipo Underpricing Characteristics And Influencing Factors Of Research In Our Country

IPO underpricing, hot-issue market and long-term underperforming are the three "puzzles" in IPO market. IPO underpricing exists in various capital markets, especially in stock markets of emerging economies. As the largest stock market of emerging economies, China’s IPO underpricing phenomenon is very serious And caused widespread concern of market participants.In order to establish a fair, rational and efficient IPO market, China’s IPO regime has undergone many changes. This article compares IPO PE ratio, explanatory power of company fundamentals to IPO price and IPO underpricing rate before and after the implementation of "Inquiry under net, Pricing online" regime. The results show that, IPO PE ratio enhanced significantly underpricing rate declined and volatility of IPO PE ratio increased after the implementation of "Inquiry under net, Pricing online" regime. Prove that current regime improve the marketization degree of IPO market, complying with the original intention of the reform. At the same time, the research of explanatory power of company fundamentals to IPO price and volatility of IPO underpricing rate concluded that explanatory power of company fundamentals declined and volatility of IPO underpricing rate stayed the same as before.The research of influential factors to IPO underpricing rate after the implementation of present regime prove that the explanatory power of investor sentiment is much higher than factors of new share itself, IPO underpricing rate remained high primarily from investors’ optimism. It also proved that oversubscription under net, the number of institution obtained placing, first day transaction turnover, average underpricing rate of last five IPOs, increase of index at listing day and average increase of index five days before listing are six good proxy variables of investor sentiment, they explained IPO underpricing rate Significantly.