Chinese Stocks Ipo Underpricing Causes Empirical Research

IPO under-pricing, a widespread phenomenon which exists global stock markets, displays different rates in different countries. Compared with the western countries, IPO under-pricing in our country shows higher rate. The high degree of IPO under-pricing would trigger rent seeking, induce market speculation, and decrease market resource allocation efficiency, which is a potential threat to the development of the Chinese stock market. Foreign researchers have studied IPO under-pricing in various aspects and many mature theories have been formed. Considering the late starting and non-mature of Chinese capital market, the western theories can’t be able to totally explain the high rate of IPO under-pricing in China. Here, the study discovered the factors which influenced IPO under-pricing significantly in three different deal markets and provided political suggestions about decreasing IPO under-pricing rate and increasing the efficiency of Chinese capital market.The thesis has been divided into five chapters, the first one of which describes the research background, research purpose, data resource and article structure; the second one of which introduces the theories about IPO under-pricing; the third one of which analysis the economic characteristics and IPO under-pricing among three different deal markets; the forth one of which proceeded a detail analysis of IPO under-pricing in three deal markets by variable selecting and measure model construction; the final one of which provided the political suggestions based on the results of analysis.