Research On The Impact Of China's IPO Amount And Financing Amount On The Stock Price Index

China's securities market has gone through more than 30 years,and gradually large-scale and market-oriented.However,during the development of China's stock market,there is always volatility in the stock price index,which is affected by many factors,including macroeconomic indicators,policy factors and so on.Since the acceleration of IPO in the second half of 2016,under the background of the regulatory authorities accelerating the IPO,many investors are quickening the initial public offering(IPO)as the main culprit for the stock market decline.There are also disagreements among theorists in this field,including three opinions that the IPO can promote the stock market,the IPO does not work on the stock market,and the IPO has a negative effect on the stock market.Therefore,this article will mainly study what kind of impact IPO has on the stock market as one of the main channels for the realization of the securities market financing function.Based on the status quo of the development of China's stock market,this paper first analyzes the background and effect of nine IPO suspensions in China's history and the impact of IPO suspension on the stock market.Furthermore,this paper analyzes the impact mechanism of IPO on the stock market from the aspects of stock market supply and demand theory,IPO fund diversion effect,IPO industry plate effect,and investor behavior analysis based on behavioral finance theory.Based on the mechanism,this paper uses the VAR model to figure out whether the number of IPOs and the amount of financing have an impact on the stock price index based on the monthly data of the number of IPOs and financing amounts from 2007 to March 2018.The result shows that the amount of IPO and the amount of financing will affect the stock price index.Furthermore,this paper innovatively uses a threshold model to examine the non-linear relationship between the number of IPOs and the amount of financing,examines the impact of different IPOs and the amount of financing on the stock index,and explores the appropriateness of the number of new shares issued and the amount of financing.After comprehensive analysis,we conclude that different new stock issuances and financing amounts have different effects on the stock price index.Therefore,the issuance of new stocks needs to grasp the appropriateness,and on this basis,this paper proposes relevant policies for regulatory agencies.In the long-term development of the stock market in the future,regulators need to promote the reform of the IPO supply side,rationally control the pace of new stocks issuance,and gradually promote the registration system;set up a strict market access system,and infuses the market with a fresh,healthy "blood".At the same time,investors in China need to establish rational investment thinking and pattern,and regulators can raise investors' awareness of rational investment through regular education and training sessions.