A Study On The Existence Of Hot Issue Market Under The Current IPO System Of Chinese A-share

Recently,as an important way of financing,Initial Public Offerings(IPO)has became a hot spot of research.Some scholars find that there are three big mysteries in the process of IPO during research,as one of the three mysteries,hot issue market has caused the widely attention of financial world.IPO market of Chinese A-share is still at an immature stage and there is not a sound theory,the special IPO system makes that other countries' s` experience and achievement of the research on IPO can only be a reference,Little research has been made to made a conclusion about wheather the hot issue market was existed in China and there is not an unified conclusion and a systematic explanation as so far.Therefore,it is of theoretical and practical significance to study the existence of the phenomenon.under the current IPO system of chinese A-share.In theory,this paper starts with the theoretical explanation of the volatility and the underpricing rate of A shares,then analyzes the transmission mechanism between them;In the empirical aspect,this paper selects the data of the A shares openly issued during June 2006 to December 2016 and divid the samples into four time periods according to the pause time of IPO,then uses ADF,ARMA,ADL,white noise and autocorrelation partial autocorrelation analysis to do empirical test for each period.The results show that: there is a very serious underpricing issue in IPO of China,the number of new shares issued has volatility,which was caused by its own cyclical,not by the underpricing rate,In other words,the hot issue market does not exist under China's current IPO system.Finally,the paper will gives policy recommendations in view of the above conclusions.The main innovation: First,Large time span,the paper selected the time that the implementation of new securities law as the starting point,then A shares of 1707 initial public offerings in the past ten years from June 2006 to December 2016 were selected as the research sample;Second,the paper uses three pause of IPO as the dividing point to divid the sample into four stages and studies the phenomenon of each period respectively and uses a variety of metrology methods to ensure the accuracy of the measurement process during the empirical test.