An Empirical Analysis Of The Factors Affecting China 's GEM IPO Over - Raising Phenomenon

After the first round of the IPO reform especially about the inquiry system, along with China’s economic recovery after the financial crisis, China’s GEM opened in October30,2009. Though GEM companies bear the expectations of high-growth and high-yield, since its inception it was confused with the "three high" phenomenon, followed by reduced corporate performance, experiencing growing pains. This paper describes theimpact on GEM IPO ultra-raised funds of underwriter reputation, investor sentiment, corporate governance, the interests of the underwriters, and corporate growth.All these indicators have a positive impact on the ultra-raised fundsthough the degree of their impact varies. This article also studiesthe third round of IPO reform in2012, the empirical analysis of the IPO reform exhibited the enhancement of capital market’s efficiency. Finally, I put forward suggestions for the improvement of China’s GEM in the future:stress the supervision; perfect information disclosure of ultra-raised funds and play the supervisory role of the intermediary organs; open up the conversion channels of delisting companies; encourage underwriters involved in the purchase of new shares, own allotment options, implement the tenure of the underwriter. Finally, consideringlPO system will transits to the registration system, we need to weaken the administrative examination and approvalgradually and introduces market-maker system in a timely manner.