Comparison Study Of Ipos' Price Behavior Before-and-after Reform Of Offering Mechanism In 2009 On Small-and Medium-sized Enterprises Board

The Chinese Stock Market has operated over 20 years. During these years, the rules of stock public offering has always been reforming and improving. In June 2009, China's Securities Regulatory Commission(CSRC) issued<Guidelines To Reform and Improve Offering Mechanism Farther>, in order to make the pricing of IPO more markedly, and to perfect the mechanism of enquiry and application. Then, what's the change for the IPO offering market and exchange market that this mechanism reform would made? Would the long term high IPO under-pricing rate be under control? Would the crazing speculation about the IPOs first dealing day be weakened? All these problems need to be studied deeply.The paper first reviewed the achievements over the world and the IPO under-pricing rates of more than 40 countries, then summarized our country's reform of IPO offering mechanism during these years. Based on these facts, the paper used several methods to analyze the IPO under-pricing rates of 144 IPOs on Small-and Medium-sized Enterprises Board from January 2008 to January 2009.The innovation of this paper is that prior literatures almost all limited in the IPO offering mechanism or the different features of IPO companies, but omitted market fluctuation, however, this paper analyzed the data of annual average IPO under-pricing rate and market index annual increase from 1994 to 2008. Given the regression result, this paper concluded that the IPO under-pricing rates were affected heavily by market index fluctuation if use year as scale. The paper deduced that our country's IPO offering mechanism reform impacted IPO under-pricing rate remarkably given the abnormal point of the 15-year's data. The paper also found that the two important IPO offering mechanism reform of 2002 and 2006 made the annual average value of IPO under-pricing rate change obviously, and the IPO offering mechanism reform of 2009 reduced the annual average value of IPO under-pricing rate deeply. Although IPO offering mechanism reforms have been made many times since 1994, only these three times put evidently effect to the annual average value of IPO under-pricing rate. The remanent values were affected by market index fluctuation basically.The regression result of the paper indicated that IPO lot winning rate (LWR) didn't impact the IPO under-pricing rate obviously, contrary to the first dealing day's amplitude of vibration. The IPO offering mechanism reform of 2009 made the IPO offering mechanism more marketably. The IPO offering pricing to earning rate of 2009 was bigger 84.91% than that of 2008, and the IPO offering pricing to earning ratio (PE) of 2009 didn't impact the IPO under-pricing rate obviously. Comparing the IPOs in 2009 and 2008 on Small-and Medium-sized Enterprises Board, the paper found that the average offering price, the average size of money raised and the average offering PE ratio of 2009 were all higher 85% than that of 2008, while the growth rate of the first public dealing day, the first dealing day's amplitude of vibration and the IPO under-pricing rate of 2009 only were nearly half of that of 2008. The LWR increased from 0.0807% of 2008 to 0.3851% of 2009, was greater 377.2% if comparing the value of 2009 to 2008. The IPO offering mechanism reform of 2009 was only a small step in the long-term progress, the current IPO offering mechanism remained much deficiency, needed to be improved in the future.