The Analysis Of The Reasonableness Of IPO Pricing Of China's GEM

GEM market in China is an important component of the initial multi-level capital stock is issued to the development of whole capital market.And the initial public offering is related to the heathy and stable development of the GEM market,so the IPO is essential.Since the establishment of the GEM,it provides an important financing channel for Chinese small and medium enterprises.The appropriate IPO price is in favor of company financing.The study of IPO pricing can not be separate from influencing factors.Based on the characteristics of the GEM,through the analysis of the rationality of IPO pricing,it is found that the reason why the IPO pricing is unreasonable is that the factors that affect IPO pricing are not comprehensive enough.To find out the significant factors influencing the IPO pricing,a multiple linear regression pricing model was established.On this basis,put forward some policy to optimize the GEM IPO pricing.Based on the related research at home and abroad,this paper analyzes the characteristics and development of China's GEM,and analyzes the IPO valuation model and IPO pricing model.On this basis,analyzes the GEM IPO pricing rational.And compared GEM with the main-board ?small and medium enterprise board.The reason why IPO pricing is unreasonable is that the factors considered in the IPO pricing process are not comprehensive.Therefore,the factors that affect IPO pricing are divided into business factors,the main market factors and secondary market factors.Through the multiple regression analysis to find the important factors affecting the IPO pricing,these factors can be a reference in the IPO pricing.Through the analysis of the model,the conclusion is as follows: First of all,China's GEM IPO main market pricing has a certain rationality,the IPO price can reflect the company's basic financial information,and affected by business locatin;Second,the new shares listed on the 20 th the closing price is not divorced from the company's intrinsic value,but it does not reflect the value of the company well and is affected by the business location and stock issuance;Third,the IPO issue price is better than the IPO market price,because the issue price reflect the corporate factors more;Finally,IPO high underpricing is mainly due to the secondary market caused by irrational speculation,IPO underpricing rate affected by the turnover rate and institutional investors sentiment significantly.Finally,based on the research,this paper puts forward three policy suggestions to optimize the IPO price of the GEM.First of all,we should pay attention to the value of the company,and find the right IPO pricing method;Secondly,we need to expand the scope of the inquiry system,and strengthen the education of investors;Finally,we need to improve the information disclosure system,and promote the implementation of IPO registration system.