Research On The Causes And Economic Consequences Of The IPO Breaking Of Semiconductor Companies On The STAR Market

In recent years,China’s semiconductor industry has developed rapidly with the support of policies and capital,especially after the events of ZTE and Huawei,and the industry’s development has reached an unprecedented climax.In the stock market,investors can get high returns when they subscribe for new shares in semiconductor companies.However,since the end of 2021,there has been a large wave of IPO breaking on the SSE STAR Market,which’s beyond investors’ expectations.IPO breaking phenomenon has once again become one of the most concerned issues in the market and scholars.IPO breaking can affect the subsequent movement of a company’s share price,which can cause its share price to remain depressed for a long time.This situation may damage the company’s reputation in the market and have an adverse impact on the company’s future financing activities.In addition,for investors,especially a large number of small and medium investors,the IPO breaking will cause the shares to be locked up and suffer investment losses,hit the confidence of investing in new shares,and thus reduce the number of subscription to new shares.This will adversely affect the development of the capital market and thus the development of our semiconductor companies.Based on information asymmetry theory,investor sentiment theory and enterprise value theory,this paper studies the causes and consequences of ASR’s IPO breaking through case analysis.Firstly,this paper reviews the development status of semiconductor companies listed on the SSE STAR Market,and summarizes the phenomenon of semiconductor companies’ IPO breaking on the SSE STAR Market.Then,combined with the theory of value evaluation,this paper deeply discusses the IPO pricing level,the company’s operating conditions,the new regulations of registration system and the current macro market environment and other factors,in order to explain the reasons of IPO breaking.Then,through the analysis of market reaction,investors’ income,issuers and underwriting institutions,the impact of ASR’s IPO breaking was explored.Finally,this paper puts forward the following suggestions from investors,underwriters,listed companies and regulatory authorities: Investors should improve their risk awareness;Listed companies should improve performance management and actively carry out market value management;Underwriters should enhance the ability of IPO pricing exhibition;The regulatory authorities should improve the information disclosure system and constantly push forward the reform of the registration system of new stock issuance.This paper explores ASR’s IPO breaking event,in order to provide investors with useful investment decision-making suggestions,promote the reasonable pricing of semiconductor companies IPO,promote the perfection of the registration and issuance system of the SSE STAR Market,and promote the healthy development of China’s semiconductor industry.