Analysis On Market Effect Of Quality Large Enterprises Listed In Domestic Market

There are some negative characters in China's early securities market such as the small size, the incomplete system, immature investment philosophy, etc. Because of those reasons, some quality large enterprises have chosen quality overseas markets. The washout of quality listed resources not only adversely affects our economic security and building capital markets, but also causes the interests of the participants lost. As the gradual deepening of the non-tradable share reform of China's securities market, and the system rules continuously improved, the environment that accommodates large enterprises listed has been formed. While people are eager to please with the IPO (initial public offering) of the quality large enterprises in the domestic markets, they worry about the negative effect on the market, especially the pressure on the market price. This paper analyzes theoretically the probable effect of the domestic IPO (initial public offering) of the quality large enterprises firstly, and then uses the incident analysis, undertakes an empirical study test of six representative quality large enterprises and the different groups of large listed company's share price effect. Eventually found, the negative effect on the on the market price of the IPO (initial public offering) of the quality large enterprises in the domestic markets is not significant. Therefore, by completing the market system, choosing good list time, cultivating institutional investors, the positive effect of the IPO (initial public offering) of the quality large enterprises in the domestic markets can be brought into full play.