Research On The Difference Of Pricing Efficiency Between A-share And H-share In The Reform Of Registration System

With the rapid development of China’s economy since the 18 th National Congress,it has transitioned from a stage of high-speed growth to a stage of high-quality development.Until the 20 th National Congress of the Communist Party of China,during the decade,with the continuous strengthening of basic research and original innovation,breakthroughs in some key core technologies were achieved,and China entered the ranks of innovative countries,focusing on promoting high-quality development,building a new development pattern,fully leveraging the decisive role of the market in resource allocation,and better playing the role of the government is an important work content of China’s current economic development.It is urgent for the capital market to move towards marketization.In order to meet the market demand and adjust the market equilibrium,the pilot of the registration system of the Science and Technology Innovation Board was officially launched on July 22,2019.One year later,the GEM registration system was also officially implemented.As a result,China’s stock issuance system is in the state of parallel approval system and registration system.From the early implementation of the registration system to April 2022,there was a significant difference in the performance of the superior companies in the A-share market and the H-share market.The phenomenon of post IPO breakdowns occurred frequently,with the number of breakdowns on the first day of listing and the number of breakdowns within one month after listing showing a significant upward trend,which is completely different from the Hong Kong stock market,which is also a registration system.Therefore,it is particularly important to study the impact of registration system reform on stock pricing efficiency and the impact of registration system on the differences in pricing efficiency between the two markets.This article first clarifies the background and significance of studying the reform of the registration system.Through studying and organizing previous research,the research methods and main research content of this article are proposed,combining information asymmetry theory and behavioral finance theory.Based on this,the impact mechanism of the registration system on pricing efficiency is analyzed.After introducing the basic situation of the registration system reform on the Science and Technology Innovation Board and the Growth Enterprise Board in China,the effects of the registration system reform and the current situation of the differences between the two markets were explained.Before analyzing the impact of registration system reform on the differences in pricing efficiency between the two markets,the concept of pricing efficiency was defined.This article mainly uses a double difference model to test the effectiveness of registration system reform.This model can examine the net effect of policy implementation and make up for the shortcomings in sample selection in this article.The results show that the pricing efficiency difference between A-shares and Hshares on the Chi Next will narrow.In terms of the impact of registration system reform on the differences between the two markets: According to the empirical results of this article,investors place more emphasis on enterprise size when making investment decisions.After the implementation of registration system reform,the degree of information asymmetry in the Chi Next market has been reduced,and the significant positive substitution variable for relative information asymmetry in the empirical results has been explained from the perspectives of the "winner’s curse" theory and the principal agent theory.At the same time,the relative investor sentiment in the market has not significantly reduced the difference between the two markets.The main reason is that the investors in the Hong Kong stock market are mainly institutional investors,while the A-share market is mainly retail investors.Although the registration system reform has a certain impact on the investor sentiment in the A-share market,the difference in investor sentiment between the two markets has not significantly changed due to the different investor structures.Therefore,based on empirical results and mechanism analysis,this article believes that in terms of the mechanism,the main reason for the reduction of pricing efficiency differences caused by the implementation of the registration system reform is that the registration system reform has improved the pricing efficiency of the Chi Next market,and its impact on the pricing efficiency of H-shares is limited.Due to the selection of "A+H" dual listed companies as the sample for studying the differences in pricing efficiency in this article,in order to test the reliability of the conclusions,it is necessary to verify the mechanism of action and the overall effect of the implementation of the registration system.Therefore,this article empirically tests the reason for narrowing the differences between the two regions,which is that the registration system improves the pricing efficiency of the A-share Chi Next market,to ensure the reliability of the research results.The test results show that in terms of the impact of the registration system reform on pricing efficiency,firstly,the registration system reform strengthens the concept of information disclosure as the center,requiring that the information disclosure of planned listed companies be complete,consistent,and easy to understand.We have strengthened the issuer’s responsibility for information disclosure,abolished the listing requirements for profit indicators,and left the value judgment of stocks entirely to the market.At the same time,a strict and complete delisting mechanism has been implemented to promote the quality of information disclosure and enhance the transparency of information on the Chi Next market through market pressure;Second,the registration system reform completely abolished price control,including the issuance of Price ceiling control and price control on the first day of listing,and relaxed the restrictions on margin trading,promoting the balance between supply and demand in the new stock market,effectively curbing the speculation of IPO "speculation" and reducing the "speculation" sentiment of investors.Therefore,the implementation of the registration system has improved the stock pricing efficiency of the overall Chi Next market,and the test results are consistent with the conclusions of this article.This article points out that China’s registration system reform has achieved certain results,but based on the performance of the two markets,it is proposed that China’s market needs to improve policy transmission mechanisms and gradually expand open channels;Strengthen the quality of company information disclosure,strengthen investor financial knowledge education,and improve the capital market supervision mechanism to ensure the smooth implementation of registration system reform.