Research Of IPO Underpricing Of Listed Commercial Banks In China

There is a general economic phenomenon existing in the global stock markets, which is also considered as a difficult issue by those in finance and management circles: The first-day trading price of a new stork is always much higher than its issue price, which is called IPO underpricing. This phenomenon not only exists prevalently in mature capital markets of western developed countries, but even more evident in emerging capital markets of developing countries, China no exception. The IPO stock price on the first day tends to rise sharply, which brings high rate of return that promotes high enthusiasm of investors. This article is based on the IPO underpricing problem, considering current economic environment and industry background, select commercial banks, the core part of financial market, as the study object, and explore the IPO underpricing phenomenon of our commercial banks since split share structure reform of listed commercial banks since the non-tradable shares reform.The thoughts of this article come from existing research achievements, based on fully reading relevant references, mastering international mainstream views and understanding Chinese research situation. Review main situations and issue system of IPO in China, understand clearly about our IPO excessive underpricing and both its positive and negative effects, especially focus on this problem of commercial bank. Theoretically analysis all these factors of IPO underpricing of our bank, including internal and external ones, and select sample variables based on this. Though measurement methods such as descriptive statistics, correlation analysis, principal component analysis, factor analysis, multiple linear regression and so on, build and correct and test the regression model, in order to empirically analysis the main factors of our bank IPO underpricing.Finally, with regard to the underpricing problem showed in IPO of our listed commercial banks, combined with the theory and practice conclusions of those factors above, propose policy recommendations. to securities market regulators, IPO participants and commercial bank managers, which is just the ultimate goal as well as realistic significance of this article.