The Influence Factors Of The GEM IPO Pricing And Pricing Rationality Analysis

The establishment of the growth enterprise market in China has great importance for the development of multi-level capital market. However, our country is currently under the imperfect market environment in a fumble stage of market reform. The IPO pricing mechanism of the growth enterprise market is not sound, and the general existence of the phenomenon of high issue price, high PE ratio and high capital raised, namely "three highs" phenomenon, has caused many interference to the development process of the capital market in our country. Therefore, this paper chooses to study the GEM IPO pricing problem in our country. This study is based on the recent GEM listed companies as samples in our country, to explore the main factors influencing the GEM IPO pricing in our country and to analyze the rationality of the GEM IPO pricing in our country.In this paper, the main idea of study is:first of all, after a brief introduction to the related theory of GEM IPO pricing, the paper implies a qualitative analysis of the issuing system and its impact on GEM IPO pricing from each link of the distribution system of GEM IPO in our country. Second, according to the result of the qualitative analysis, select different levels of influence factors as independent variables to do empirical research with actor analysis and multiple regression models so as to explore the correlation between these factors and the GEM IPO pricing., using the GEM new listed companies from May1,2011to April30,2014in our country as samples. Then, on the basis of theoretical analysis, statistical analysis and regression analysis, the paper has analyzed the rationality of the GEM IPO pricing in our country. Finally, according to the results of the study, some recommendations and suggestions on further reforming and improving the GEM IPO in our country are given.Through stepwise regression analysis, this paper found that the actual distribution costs per share, the company’s financial situation, market demand, ratio of circulating shares after listed has obvious effects on the final price. In addition, by further theoretical analysis, data processing and statistical analysis, it is found that there is higher-pricing phenomenon existing in Chinese GEM IPO pricing and the main reason leading to "high underpricing" phenomenon on the first day of listing is that the price in the secondary market is a bubble, serious inflated price.