Research On IPO System Reform And Pricing Efficiency In A - Share Market

The reformation of IPO institution is another milestone revolution after "The Split share structure reform" in A-share market. It’s very important because the issue price of the new shares refers the center of China’s stock market value, it can reflect the three basic functions of security market, financing, resource allocation and the value expression.Overall, the evolution of IPO institution in A-share market is market-oriented progressively, especially in the June of2009the favorable effect had been achieved. The IPO Pricing market-oriented standards have markedly improved. The issue price is approach to the secondary market price, the IPO underpricing rate has been reduced effectively. The issue price of the new shares can reflect the internal company value reasonably.On the basis of analyzing the differences and changes between the domestic and international stock market IPO institution, this paper does the living example tests with the effect of IPO issue institution reformation on the June2009using the regression analysis method. For some new problems appearing on the market since the IPO reformation, e.g. new share issue "three" prominent phenomenon, independent Placing right missing, new share supply scarcity, investment research report lacking, this paper does some suggestions that, simplify the audit procedures, increase the supply of shares by narrowing the scope of audit in the link of new share audit; encourage the interaction of issuers, underwriters and investors, enhance the independence of investment research report, introduce the American-style auction system timely in the link of IPO pricing; give more liberal allotment option for underwriters, introduce some new placing methods such as the stock issue, the shelf issue in the link of IPO placing. In addition, establishing the thorough capital market laws and regulations, using for reference of class action system, increasing the cost of illegal market players, can provide a strong system protection for the future IPO institution reformation.