The Study Of The IPO Underpricing Of China's Growth Enterprise Market

The official opening of China's Growth Enterprise Market was on the Shenzhen Stock Exchange board in October 23,2009.The launch of the GEM aims at broadening the financing channels for SMEs, and providing a convenient exit route for venture capital in China. More importantly, there are greater significance for establishing suitable China's multi-level capital market system and optimizing the capital market functions. However, there have been some problems in the growth enterprise market. For instance, the underpricing is a common phenomenon. If it can not get a better solution, the question of huge underpricing will bring a series of problems.This paper briefly describes the source of IPO underpricing and theoretical issues, and presents the contents of this paper and innovation; then it reviews on the studies at home and abroad. Second, the paper details the content of the Growth Enterprise Market, and compares the differences between the growth enterprise market and small plates Market and the NASDAQ. In order to see IPO underpricing of China's Growth Enterprise Market intuitively, it descriptive argues the general degree of the IPO underpricing, different degree of the IPO underpricing in different months and in different industry. We can find that IPO underpricing of the growth enterprise market is still high. Third, this paper uses market factors,own texture factors of the company stocks and factor of investment banking selected with the sample of 113 listed companies from inception of the GEM index, through three factors'regression analysis, we find that market factors is the strongest explanatory power of IPO underpricing of shares.Then pick 14 factors issued IPO underpricing of the growth enterprise market and take the single factor regression analysis and multiple regression analysis respectively. The conclusion is that the turnover success rate under the net,issue price and operation of Gems Index are the main factors of China's Growth Enterprise Market. Lastly, made by the results of empirical, market-oriented reform and policy recommendations is adopted in this paper...