The Study On The Linkage Effect Between Gem Primary Market And Secondary Market

In2009since the establishment of the gem, gem rapid development, has become the darling of the various investors, the gem market in China since the open plate has been more than four years of time, during this period the market distribution and a growing number of new shares of expanding the size of the market. But the problem comes, raise high yield high underpricing the three tenors become a hotspot of research on the gem, gem IPO super offering amount reached new highs, capital stock market expanded rapidly, the gem in the primary market wholesale funding, in theory, will bring impact to the gem of the secondary market, on the one hand, listed companies will increase the supply of shares in the secondary market, on the other hand to reduce the money supply on the market, thus will cause the imbalance of supply and demand, the stock price fell. The longer term, the stock market during a given period of time during the period of financing amount how many and the stock index returns have some relationship, when the market is in a bull market, investors more optimistic mood, are enthusiastic about buying shares, the market is generally in a state of high p/e ratio, market flush with cash, raised and the number of listed companies will rise at this time. This is both influence each other. Then the gem in the secondary market movements and gem whether there is such a linkage between the primary market financing effect? In the primary market financing is bound to lead to share price index fell? The relationship between the primary market and secondary market movements and affected by what factors? Secondary markets would react on the amount of financing and speed? The above problem is the focus of this article to discuss. Study of these problems for the development of the growth enterprise market is of important theoretical and realistic significance. For the investors’ investment strategy also has certain guiding significance. So this article on the relationship of the gem the primary market and secondary market were studied.In this paper, first of all, the relationship of the primary market and secondary market are discussed in this paper. Raised and the gem index adopted the gem month month average closing price of these two indicators represent the gem of the primary market and secondary market, the correlation analysis was carried out on the two indicators, it is concluded that a relationship there, and then carries on the unit root test, cointegration test to further explore the primary market and secondary market of long-term relationships, and introduced the advance of market economy and the CPI index and other external factors, the final use error correction model to explore the primary market and secondary market short-term correction model. Then use event study to explore the primary market of secondary market using cointegration test and error correction model to study raised the primary market and secondary market relationship with long-term and short-term. On the basis of the research on the impact of the secondary market, the primary market financing by using event study to explore the influence of the secondary market before and after the primary market financing, by comparing the purchase four days before and after the purchase the gem on the fifth day of the index of average abnormal returns to investigate whether the primary market financing of the secondary market funds pressure caused by the secondary market. Finally using regression metering method to explore the secondary market for the influence of the primary market financing. Is using the primary market financing as explained variable, the gem of2class market index closing price as explained variable regression.The conclusion of empirical research, the author of this paper concludes:first, the gem raised the primary market and secondary market movements between closely related, through the correlation research, found that raised and the correlation coefficient between stock index closing price of0.7, this fully shows that the gem IPO financing is closely related to the gem index. Raised the primary market and secondary market moves the cointegration relationship between was not significant, but the introduction of economic sentiment index and CPI index after external data, first significant cointegration relationship, illustrate the gem market of secondary market at the same time affected by external factors, and there are positive co-integration relationship for a long time, the secondary market is short-term impact. Second, event study found that in two time zones purchase before and after purchase, abnormal returns are not zero, it shows that the financing before investors will be drawn from the secondary market funds to purchase new shares, resulting in the secondary market, the investors will not purchase subscriptions thawing successful pushing the money into the secondary market and secondary market movements. Third, regression model, the gem index significantly average closing price coefficient is not zero, the trend of the secondary market in the primary market financing effect, and with a positive impact. When the secondary market, index closing price rise, the primary market more active, the enterprise can get more finance, on the contrary if the secondary market performance is not good, the primary market financing will be affected.