Analysis Of The Current IPO Pricing Mechanism In China

IPO pricing mechanism is an important financial problem focused on by capitalist countries all over the world.It has a direct influence in optimizing capital allocation in capitalist market,which will finally affect healthy development of stock market.Although China's stock market grows up quickly,it is still immature now.There are two prominent problems,high underpricing and excessive speculation,in China's stock market,rooting in IPO pricing mechanism.This thesis aims at offering some useful suggestions and reference to reform of IPO pricing mechanism of China by researching China's current IPO pricing mechanism.First of all,this thesis sort out fundamental methods and inner and outer influence factors of IPO pricing mechanism.Then,it summarizes current popular international IPO pricing mechanism,and further summing up China's IPO pricing mechanism from three respects — evolution course,pricing issuance and existing problems in the current mechanism.Next,it adopts stepwise regression analysis method to undertake empirical comparative study in 59 samples of direct pricing and 155 samples of inquiry pricing.The explanatory variables these two kinds of samples use are same and they are online distribution quantity,issuing price-earnings ratio,total assets before issuance,current ratio,net assets per share before issuance,return on net assets before issuance and industry and lead underwriter reputation.This can provide relative empirical evidence for the research in the thesis.In the end,according to the tendency of China's registration system reform in the future,the thesis gives some reform suggestions from these respects,namely information disclosure,underwriter constraint,inquiry pricing process,pricing valuation method,issuing and offering methods,Investor education and restraint and relative support mechanisms and regulations.