| Chinese capital market has been established for more than thirty years,and the reform of registration system is an important institutional change in Chinese capital market.Thus the effect of its implementation is of great concern.Since the implementation of the registration system reform,especially the enactment of the new inquiry regulations,IPO breaks frequently in the Chinese capital market.There have been relevant studies on the reform of registration system,but most of them focus on the field of IPO under-pricing.A correlation between the reform of registration system and the IPO break,and the impact the reform still need to be further studied and discussed.After the stock issuance registration system is fully launched,explore the specific policy implementation effect of the registration system reform in the capital market pricing process,and summarize the policy experience in the registration system reform process,which can provide feasible suggestions for improving the new share pricing system and trading rules in the future,It is of great significance to the healthy development of our stock market and the construction of a perfect multi-level capital market system.This paper takes the data of main board,sci-tech innovation board and growth enterprise market from January 1,2019 to February 1,2023 as samples to analyze the impact of registration system reform on IPO breaking.First of all,the article reviews the relevant theoretical research on IPO pricing and domestic literature on IPO issuance systems and IPO breakdowns;Secondly,this paper elaborated on the changes in new stock issuance system and pricing system,theoretically analyze the relationship between registration system reform and IPO failure from the perspectives of supply and demand and pricing;What’s more,the empirical study in this paper was conducted by EB-DID and the robustness test was conducted by alternative variables,placebo test and PSM-DID to make the study more convincing,the focus is on studying the impact of the promulgation of new inquiry regulations on IPO breakdowns and testing their mechanisms of action.Finally,based on the research results and combined with the current situation of China’s registration system reform,the article propose certain suggestions.The empirical results show that the reform of registration system has a significant impact on IPO break and the degree of IPO break,especially after the implementation of the new inquiry rules,new shares are easier to break and the degree of IPO break is also increased.At the same time,the reform of the registration system has varying degrees of impact on IPO breakdowns in different industries and regions,and there is heterogeneity in these industries and regions.To a certain extent,this indicates that after the implementation of the registration system reform,the pricing of new shares is more reasonable,some problems caused by unreasonable valuation such as group pricing pressure and first-day burst pricing are alleviated,and the efficiency of resource allocation in the capital market has been effectively improved.In addition,too many IPO breaks also shows that the adjustment of pricing mechanism can not completely improve the effectiveness of market pricing,which is also the direction of future policy efforts.Combined with the above research and analysis,this paper puts forward relevant suggestions from the government,enterprises and investors to improve the pricing efficiency of the stock market and promote the healthy development of the capital market. |
