The Empirical Research Of GEM IPO Underpricing In China

October30,2009, with the first batch of28companies listed on the GEM of China officially listed. GEM has so far set up more than3years,355enterprises have been successfully listed on the GEM, GEM has become an important platform for financing of SMEs is part of the multi-level capital market in China is an important supplement. The launch of the GEM has created a good opportunity for the development of China’s high-tech SMEs, but this opportunity is based on the expense of the normal development of the GEM. This unusual performance of one of the most significant development is the GEM companies IPO underpricing serious problem, according to this article the data analysis, the355companies listed on the GEM average underpricing rate of34.30%, much higher than in developed countries mature the average of the capital market, the first batch of28companies listed underpricing rate is106.23%. In addition, the GEM since its inception hat labeled "high" that high issue price, high price-earnings ratio, superb raised.In this paper, the knowledge of finance, econometrics, impact factors GEM IPO underpricing the relationship between the main line to the GEM IPO underpricing, the impact on China the GEM IPO pricing efficiency factors, empirical research, to explore the cause of entrepreneurship The board of the main reasons of the "three high", and how to improve this situation and make policy recommendations.In this paper, a brief introduction on the basis of the theoretical research scholars GEM IPO underpricing, a review of the GEM "Decade of grinding sword" twists and turns, and then describe the current development status of China’s GEM by This leads to our GEM main problems:the high issue price, high price-earnings ratio, superb raised GEM companies listed decline in performance and a large number of executives cash holdings. The date of the empirical analysis part, influencing factors on the GEM IPO underpricing rate study analyzed:the issue size and issue price of the GEM IPO underpricing negatively correlated, and the first day of listing turnover, listed interval and listed on the first day of earnings GEM IPO underpricing into a positive correlation. This conclusion shows that the secondary market of the the GEM IPO pricing efficiency, the first day of turnover reflects the status of the secondary market shortage, which also contributed to the higher GEM IPO underpricing.