The Formation Of The Oversubscription Of IPOS And Its Influence On Companies Investment

On October 30,2009,28 firms were approved applications for GEM listing gorgeously in the Shenzhen Stock Exchange, marking that the GEM was formally established in China. Up to now, the GEM has appeared 5 years ago. Its founder improves the development of China’s securities market, broadens the financing channels of the the small and medium-sized enterprises(the SMEs). There is no doubt that the GEM relieved the bottlenecks of the development of the SMEs, and promote the rapid development of high-tech industries. But at the same time, the phenomenon of "over raised" also caused extensive concern of the market.The issue P/E of IPOs are increasing, the issue price are racing, so that the "over raised" intensified. Where the funds had been used in the end naturally become a hot topic currently. Some companies set it to bank, which did not play the maximum efficiency; Some unaccounted the schemes to the public, which lay hidden for the development of the enterprises and the investors; Others puchased the real esate, or invest in mergers and acquisitions.Based the background of the "over raised" phenomenon of the IPOs but without best investment programs, the paper will use the standard research combined with empirical research. After theoretical analysis foundation, I selected 355 GEM IPOs listed in shenzhen stock exchange from 2009 to 2012 as samples, mainly from the following three aspects:first of all, put forward the "over raised" on the GEM, and then study the important factors; Secondly, analyze the bad consequence mainly refered to excessive investment behavior caused by the "super offering"; Finally, investigate the effect of "Raised" on the value of the company for analysis.Through the above three aspects of empirical research, this paper analyzed the main factors of the phenomenon of "over raised" in Chinese gem is derived from the serious information asymmetry between all market participants, the blind optimism of the investors in the secondary market. In addition, venture capital can play a play an inhibitory effect on the oversubscription. The phenomenon of "over raised" inevitably cause the excessive investment behavior of company, which led to a decline in the value of the company. Finally, this paper puts forward some policy suggestions on how to curb the gem "over raised" phenomenon, how to inhibit excessive investment and raise the value of the company. This is the writing intention of this article.