An Analysis Of The Impact Of The IPO System Reform On China's IPO Underpricing

There is a phenomenon around the world that is low IPO pricing,but the degree of underpricing in each country is different.Compared with the developed areas,The IPO price in China is very high.Scholars around the world are paying much attention and doing a lot of research on it.China's securities market was established in 1990 and the distribution system has changed a lot.In order to provide some reference for China's future reform,we need to extract some experience and lessons from the reform of the securities market in China.Aim at promoting the perfection of the issuance and pricing mechanism.Based on the present situation of China 's capital market development,this paper analyzes the factor's influencing the high underpricing of IPO.Firstly,the paper makes a systematic review on China's new share issuing system,introducing the history,mainly from two aspects: audit system and pricing system.Meanwhile,we can see the administrative plan has affected the mechanism a lot.Then,this paper conducts descriptive statistics on the whole of the IPO underpricing phenomenon,and the conclusion is the rate of IPO underpricing showing a downward trend over more than 20 years.Based on this,the paper also summaries some special theories that conformed to the security market in China.In this paper,the Tamhane analysis and multiple linear regression analysis were used in the empirical analysis.It is found that the audit system and the pricing system of IPO are more obvious for the IPO underpricing.With the improvement of these two systems,China's IPO underpricing rate will be further reduced.Finally,I believe that China's securities market in the future need to work mainly in the following points: first,gradually advancing the registration system;secondly,gradually advancing the inquiry system;thirdly,gradually doing the delisting mechanism,survival of the fittest,fourth,supervising the behavior of issuers and underwriters;fifth,standardizing the behavior of investors and helping guide them;sixth,to regulators,being more free for the market.