Analysis Of IPO Return Rate In Day One In Chinese GEM

Listed Chinese companies listed on its yield are much higher than other countries(regions) average, and has been the development of Chinese stock market and reformof the system of a hot issue in the discussion. As China’s GEM officially opened, theresulting excess earnings are listed on the GEM. IPO on the first day, the phenomenonof the high yield severely reduces the financing and resource allocation function of thestock market, so the article using the theory of existing foreign and China’s GEM IPOmarket data, combining with the characteristics of China’s GEM IPO market theirown development, from the empirical study of this phenomenon, analyzing theinfluence factors and the source, find out existing problems, in order to can contributeto the healthy development of capital market.The article first gives a brief overview of the Chinese GEM. Then it appliesstatistical methods to analyze the first day return rate of Chinese GEM IPO. Afterbreaking up the first day return rate of Chinese GEM IPO into underpricing rate andoverpricing rate, applies analysis of variance descriptive by time and industrys, theinspection packet data whether there is a significant difference. Followed by theapplication of econometric methods to analyze the influencing factors of ChineseGEM IPO first day of underprice and overprice rate. Use characteristics of the realityof the GEM study a market underpricing indicators of profitability and innovativeinterpretation of the formation mechanism of the first day of in analyzing underpricerate. Came to the conclusion about factors of return rate in day one of Chinese GEMIPO and reflect the existing problems.