Empirical Analysis Of The IPO Under-pricing Issue Existing In A-Share Stock Market In China

The paper makes a positive study of the IPO under-pricing issue in China A-share market after the split share structure reform. Based on the analysis of the influence factors of IPO Under-pricing and pricing efficiency, the paper brings forward such specific measures as perfecting the issuing system, reforming the trading system and optimizing the market environment with a view to improving IPO pricing efficiency to some extent, reducing the under-pricing rate and furthering the development of the domestic security market in a healthier and more reasonable way.According to the statistic description and group empirical analysis of the IPO excess under-pricing rate in SMSE and main board stock markets in Shanghai Stock Exchange, the paper comes to the conclusion that, after the split share structure reform, the serious IPO under-pricing phenomenon still exists in China, with severe speculation behavior in secondary stock market; investors have not yet set up "Value Investment Philosophy" ; the IPO under-pricing level in SMSE stock market is higher than that in the main board market; new stock shows a downward trend after floating and that the full negotiable price theory built on the basis of expected earnings per share has no effect on the IPO under-pricing rate. On the basis of the analysis of the IPO market environment and related systems regarding A-share stock market in China, the paper seeks some feasible measures to improve IPO pricing efficiency.This paper centers on the above topic by combining theory with practice and combining normative research and positive research. Tabulating method, graphic method and multiple regression model have been applied to the empirical analysis.