China Growth Enterprise Market IPO Underpricing Ernprical Study

On October 30,2009 represented by JY technology of 28 listed companies in shenzhen stock exchange staged on the GEM, and the GEM preparated about ten years launched in China. The GEM has gone five years, and there have been 402 companies listed successfully. The GEM is the most direct financing channels of small and medium-sized enterprises in our country, and it is also an important part of the deepening in the construction of multi-level capital market system in our country. However, in the five years of development, a lot of problems have appeared.And IPO underpricing is a prominent problem. The changes in the share price is the most intuitive feelings of investors, so high GEM IPO underpricing in China seriously affects the efficient allocation of resources of our country’s capital markets. In this article, the empirical analysis on data discovery that the first listed on the GEM listing 28 mses IPO underpricing rate is as high as 104% on average, the highest JY technology (300028) reached 209.7%, and all the 402 listed companies of average underpricing rate reached 35%, far above the level of the western mature capital market. Today, along with the growth enterprise market from the start of the "three highs" (high issue price, high p/e ratio, superb issue) phenomenon still exists, and there is no data showed that the phenomenon in gradually disappear. In order to the long-term development of the gem must be effective to control the degree of IPO underpricing, so it is necessary for us to further study of IPO underpricing factors.This article fully about the theories of IPO underpricing, at home and abroad for reference, and considering the present situation of the development of the GEM in China, through empirical analysis the main factors influencing the GEM IPO premium rate in our country, and accordingly puts forward policies and suggestions to solve the high underpricing rate, hope for the gem listed companies, regulators, intermediary agencies and investors to provide some reference and reference, gradually improve the efficiency of the capital operation of the gem market in China.