A Study On Chi Next’s IPO System Reform And Pricing Efficiency

Since January 1,2005,the new stock inquiry system has officially entered the stage of China’s capital market.The implementation of the inquiry system is expected to establish a truly market-oriented new stock price discovery system.At present,the price inquiry system has become the most important IPO pricing issuance system in our country,but the introduction of this system has not completely solved the problem of IPO pricing efficiency.The low efficiency of IPO pricing is common and long-standing.The inquiry system has undergone several reforms since its establishment,and the current reform has entered a new stage of the registration system.This paper analyzes and studies the effect of the two IPO system reforms in the stage of the Chi Next registration system under the circumstance that the inquiry system is generally adopted for new shares.In the process of comprehensively promoting the registration system,the Growth Enterprise Market,which has the significance of connecting the past and ushering in the future,can provide a novel and suitable sample for this study.First of all,this article sorts out the two key IPO system reforms in the Chi Next registration system stage: The first reform,on August 24,2020,the "registration system" of the Chi Next Board reformed a series of IPO systems such as the inquiry system,transaction system,and information disclosure.The Chi Next inquiry system has thus completed a key leap from the approval system to the registration system.However,as a basic system of the capital market,the reform of the registration system is difficult to achieve overnight.Due to the incomplete reform of the inquiry system,there have been problems such as grouping to suppress prices and speculation.The market-oriented pricing mechanism of the inquiry system has failed.The second reform was on September 18,2021.In response to the above problems,the securities regulatory agency issued the "New Price Inquiry Regulations",which optimized the policy for the registration system inquiry system,and initially achieved reform results.Under the background of the comprehensive registration system,this paper studies and evaluates the impact of the two IPO system reforms,such as the "registration system implementation" and "new price inquiry regulations" in the Chi Next registration system stage,on the IPO pricing efficiency of the price inquiry system.It reveals the reform effect and the crux of the reform,and provides policy suggestions for the follow-up reform of the registration system.In the context of China’s A-share full registration system,this paper systematically,horizontally and vertically studies the impact of the two IPO system reforms in the Chi Next registration system stage on the IPO pricing efficiency of the price inquiry system,and conducts a series of robustness tests.The results show that: First,compared with before the implementation of the registration system,the pricing efficiency under the Chi Next inquiry system is lower after the implementation.Second,compared with the approval-based main board in the same period,the pricing efficiency under the Chi Next inquiry system is lower after the registration system is implemented.Third,compared with before the new inquiry regulations,the pricing efficiency under the Chi Next inquiry system after the new regulations is higher.Fourth,Compared with the approval-based main board in the same period,the pricing efficiency under the Chi Next inquiry system after the new regulation is higher.Fifth,The price inquiry system has a more obvious inhibitory effect on the hype of newly listed small-cap stocks on the Chi Next.Overall,the reform of the IPO system at the registration-based stage of the Chi Next has achieved initial results.The innovations of this article are: First,the sample is more novel.Existing studies often use the Science and Technology Innovation Board as the sample,but this paper uses the Chi Next as the sample,and the sample is more novel.Second,expand on the basis of previous research.Existing literature research on the reform of the IPO system is often based on the moment when the registration system is implemented,and does not pay enough attention to the follow-up new regulations on price inquiry of the registration system.Due to the late implementation of the new registration-based inquiry regulations and the fact that the sample has just reached a certain level of accumulation,the academic attention it currently receives does not match its profound and extensive industry influence.This paper provides sufficient and rigorous empirical research on the new price inquiry regulations,which fills in the gaps in the research field and enhances the timeliness of academic research to follow up on industry dynamics.