Study On The Causes Of IPO Under-pricing Of China

IPO under-pricing is a common phenomenon in capital market,and there is no exception in the developed capital markets,and also in the developing market such as China.However,the phenomenon of IPO under-pricing in developed capital markets is not as serious as the developing markets,which is also depends on the market maturity,freedom and development level.The paper will use China's A share's IPO data from January 2014 to May 2017 as sample to make regression analysis.Based on the background of pricing regulation form 2014 in China's A share's IPO,verified the relationships between the primary market pricing theory hypothesis,second class market sentiment hypothesis and China's A share's IPO under-pricing,and followed with thoughts and suggestions on the policy making of China's capital market.