China’s Shipping IPO Price Behavior Of Listed Companies

As a shipping company, the company operating the business is subject to macroeconomic fluctuations, the hinterland of economic fluctuations, fluctuations in the foreign trade situation greater impact. As basic industries, the shipping industry, can be impact by national macroeconomic policies, once into economic adjustment, the state’s economic policy tightening, the market slowed down, leading to a drop in demand for transport, the company operates may thus reduced. In recent years, the shipping company’s core business strategy gradually shifted from pure profit maximization to the company’s market value increased. In order to adapt to the changing environment, shipping companies need to use the financial methods and tools to increase funding to meet the major investment budget. Shipping corporate finance can be divided into two major directions, namely self-sustaining (internal) and external financing. The second method, companies need to invest to the international capital market to raise funds needed. Capital market for shipping services to promote growth and value creation plays a key role, they provide new investment to the shipping companies to maintain business growth project financing and funds needed. Shipping companies use the issuance of new securities to raise the necessary funds, including equity financing which are increasingly attracted much attention.Undoubtedly, a lot of shipping companies consider the capital market as an important part of its strategy optimize financial management, through the combination of traditional bank loans, private and public debt and equity raising. Following this, more and more companies are choosing public offering of shares to obtain financing.Chinese shipping company IPO market has long had a higher underpricing rate, which means that China’s shipping companies IPO market efficiency is relatively low, thereby causing very serious consequences:hinder our normal financing function of the play, greatly reducing the market efficiency of resource allocation, increasing the overall stock market speculation atmosphere, thus seriously affect the long-term healthy development of shipping companies. So the IPO price of shipping enterprises have a great significance. Price behavior research, mainly include from the issuance of stock to the market,and late price performance.By studying the first day of the excess returns and long-term performance, to illustrate the first day of the excess return of the shipping business capital markets, by studying the factors that affect the underpricing and long-term earnings performance. To analyze the shipping industry pricing is overvalued, and targeted relevant countermeasures.