Research On The Pricing Approach And Underpricing In The Chinese Stock Market

In the stock market, IPO (initial public offering) means the process of selling the stocks to the exactly buyers, From the establishment of Chinese stock market, we have already experienced many circles. The development also shows that with the system and rules transformation, the pricing system and publish way of the economic individual is affected by many factors.First, in the article, we introduced the relative background, meaning and ways of research, and then the research result of the theory, In the following sector, we compare the Chinese status with international ways about the pricing system and publishing approach on the affect element and suitable situation.Based on the result of theory and situation research, with the following we gave a result of the research and proposed some suggestion on the IPO. We think the value of the enterprise is based on the value of the company, because of the situation of Chinese stock market; some mature way of the value of the enterprise is not suitable. So the pricing way in Chinese market should not only base on the mature value way but also on the current industry, publishing time and other elements. The pricing way should not only consider the way of pricing but also the cash flow capability.The first Chapter is the relative IPO theory, including international result and system transformation and others.Chapter 2 and Chapter 3 discussing the two important part of publishing:pricing way and publishing way. First summarize the mature theory and complex it with the situation in Chinese market. Chapter 4 and Chapter 5 we discuss it with an example. The last chapter summarizes the whole work, also the policy suggestion and deficiency in this paper are offered at last.