Empirical Studies And Recommendations For Improvement Of China’s IPO Pricing

IPO underpricing phenomenon means the unusual excess return of the shares listed on the first day. Although Chinese government has repeatedly reformed the policies of the IPO market, the level of the IPO underpricing is still much higher than other mature markets and emerging markets. In this paper,1663 new stocks from 2000 to 2014 were chosen as the samples of IPO to conduct a comprehensive study, trying to find out the reasons for the suppressing price phenomenon. Another research was done to find out the impact of the issuing system on IPO pricing. Finally some recommendations based on the results of these researches were given out.