Empirical Researches On Effects Of IPO System Reforming On IPO Under-pricing Phenomenon

IPO Under-pricing exists widely in the global capital markets.Since it was found, foreign scholars has made a lot of research on it and got many academic achievements,but there is no theory can explain the phenomenon perfectly.IPO Under-pricing also exists in China’s capital market,and compared with foreign mature capital market,the problem is more serious.Scholars in China has proved the phenomenon has affected the capital markets function of resource allocating and price discovering,the problem also affected the development of capital market seriously.Therefore,it is the high time taking strong measures to resolve the problem.In order to solve this problem, the CSRC has adopted a series of measures.From IPO Approving System to IPO Authoritarian System,from book building pricing to Controlling P/E pricing to inquiring distribution pricing.Administrative intervention weakened and marketization process deepened gradually in the IPO process.On June11,2009,CSRC published THE Guidance Note about further reforming and improving the IPO System,it represented reforming about IPO System has entered a new stage.Even to this day,there has4changes in only5years about IPO System Reforming,and reform also has been deepened.So dose reform achieve good effect? Dose IPO Under-pricing Ratio decline?How much?Which influence factors has changed with the reforming?The article bases on IPO data after IPO System Reforming,regarding the Opening Time of4IPO System Reforming as the maker of region,dividing the data into4groups.Combining theoretical analysis and empirical study,comparison the changes about IPO Under-pricing Ratio and influence factors before and after IPO System Reforming,evaluating policy impact,looking for reform road.Finally, the empirical research is done,the result shows that the IPO Under-pricing Ratio has declined gradually after IPO System Reforming,the policy was highly efficient.However,there are much different from4IPO System Reforming.Besides different measures have had different impact on the ratio.To be specific,turnover ratio was always significant factors,P/E ratio,opening price,financed capitals,subscription content,ratio of effective offline subscription had different influence from different measures.The result,we also known there was enough space and great potential for reform,therefore,at last this thesis gives some suggestions. For example,top-level design about marketing reform,cultivating rational investor, improving the supervision system on information disclosure,increasing the proportion of IPO.As far as the market concerned,the fourth IPO System Reforming is the transition from Approval System to substantive examination registration system.Substantive examination registration system is long and hard,it needs regulators,issuer,financial Intermediaries,investor to get ready and work together.