A Study On China's Stock Initial Public Offering Pricing

Primary market is the important part of the stock market, and the formation of IPO price not only reflects market maturity, but also constitutes the base for healthy function of the stock market and efficient resource allocation. Due to its combination of theory and practice, IPO pricing has been widely regarded as a difficult problem in the field of finance. A systematic study on China's IPO pricing is of great theoretic and realistic significance for the reform of IPO, the improvement of primary market efficiency, the perfection of primary market function, the enhancement of investment banks'competence in their core business, maximization of issuers'revenues and the guidance of investment decisions. This paper includes five chapters altogether. The first chapter analyses the theory of stock pricing. It mainly analyses to describe the theory of inherent value, combinatorial theory of the securities, non-linear models, and has followed the trail of the recent development trends of the stock pricing theory. The second chapter analyses the influencing factor. It mainly analyses publisher factor and market factor of IPO pricing. The third chapter carries on comparative research on the IPO pricing between our country and various countries (district). On the basis of investigating the history gradual progress of the IPO pricing institution of our country, it carries on comparative research from two aspects such as the way and the course of IPO pricing. The forth chapter assesses the result of the market-based reform of IPO pricing of our country. On the basis of chooses of and analysis on samples of the new stock of Shanghai, it examines and assesses the result of the market-based reform of IPO pricing. The result is that the market-based reform of IPO pricing not meets the anticipation. On the basis of former analysis, combining the actual conditions of our country, the fifth chapter puts forward some suggestions for perfecting the system of IPO pricing from three aspects such as IPO mechanism, IPO pricing liberalization and IPO pricing way of our country.