The Study Of The Characteristics In The Growth Enterprises Board Market's IPOs Yield

The Chinese Securities Supervisory Association had issued tentative regulations of IPO on GEM on March 31,2009, which marks the birth of Chinese NASDAQ after 10 years'wait. Compared with the main board, GEM is new with promising future and unexpected challenges. Therefore, the research on GEM is important and meaningful.In this thesis, the research combines empirical and normative analysis. First of all, it describes theories related to the concept, characteristics and IPO returns of shares listed on GEM with normative analysis. Then, it analyzes short-term IPO returns of 50 shares listed on GEM, from Teruide (300001) to Shijidingli (300050) with empirical methods. As the characteristics of IPO returns cover a very broad area, this thesis can not touch everything in it. Therefore, this thesis mainly seeks common characteristics of IPO returns of shares listed on GEM with an analysis of data, which are then compared with those listed on small and medium-sized enterprises board of Shenzhen Stock Exchange. There have been considerable researches on IPO under pricing at home and abroad, which will not be elaborated here. The focus is placed on the characteristics of the short-term IPO returns 5days,10 days and 20days after the shares have been listed.This thesis conducts a comparative study on the characteristics of IPO returns. The four characteristics include the underpricing of IPO, adjustment of prices after IPO, the adjustment of share price in short term is minute but agile, and the discrepancy of returns formed shortly after listed. For the first characteristic, there have been many domestic and foreign literatures, so this thesis mainly tests the findings of those literatures. As for the second, third and fourth characteristics, this thesis explains the reasons with theories such as over-reaction and anchoring effect and so on. As the sample size is limited, the number of samples is to be expanded for more precise analysis in the futureThe last part proposes recommendations of short-term investments after analyzing the characteristics of IPO returns. This thesis explores interesting and enlightening method of research and angle of explanation, in the hope that these findings will be helpful for future research.