Research On IPO Underpricing Analysis And Control In China

Chinese economic good health needed for the operation of the securities marketdevelopment, High IPO underpricing longstanding seriously affect the smoothrunning and healthy development of Chinese securities market. With the securitiesmarket reforms in China, and to some extent reduce the degree of IPO underpricing,but overall still hovering Analysis and Control of IPO underpricing solving IPOunderpricing, Equity Capital Markets health operations and development still has avery important significance.Chinese IPO the high underpricing phenomenon has been present, but the causesare not the same in different securities system, With the issue of the reform of thepricing system of our securities market, for example, each High IPO Underpricingwill change, so the research of our High IPO underpricing will have two ideas, one torelease pricing system case study, another in the same issue of the research in the caseof the pricing system. This thesis is the idea behind our cumulative Inquiry system,the reason for our IPO underpricing phenomenon empirical analysis of the impact ofChinese IPO underpricing factors from both primary and secondary markets to Firststudy of the effectiveness of a market, after the IPO underpricing affect investorsentiment in the secondary market. Obtained by studying the following findings andconclusions:A systematic analysis of the evolution of Chinese IPO system and its impact on IPOunderpricing. The thesis discusses several IPO since the establishment of Chinesesecurities market, the implementation of the system and the pricing system, and in adifferent system, the analysis and discussion of the impact of Chinese IPOunderpricing, obtained presently in force accumulated Inquiry system on IPOunderpricing played a certain extent, but the distribution system is not optimal, thereis still much room for improvement.Empirical study the effectiveness of new shares issued in the primary market, thedraw of a market is not fully effective. Impact of IPO underpricing by excludingdistribution system through the introduction of stochastic frontier analysis method,select the validity of the data samples and variables of a market issue of new shares empirical studies come to the issue of new shares a market exists significant groundboundary characteristics, that some of the factors of a market impact of Chinese IPOunderpricing.The empirical study of investor sentiment on the secondary market IPOunderpricing by multiple linear regression method. Select a few indicators andvariables that affect investment sentiment, investor sentiment on the secondary marketthrough empirical research on China’s IPO underpricing significant influence, are themain causes of Chinese IPO underpricing.A secondary market research, and proposed the corresponding countermeasures. Asin the system, under the premise of the securities market continues to market-oriented,you can consider the introduction and implementation of the registration system. Inaddition, in the secondary market should strengthen the supervision of informationdisclosure mechanism investor education.