Study On Ipos Underpricing And Empirical Test In China Growth Enterprise Market

China Growth Enterprise Market (CGEM) was opened in Shenzhen Stock Exchange at Oct.30th 2009 with 28 companies going public successfully. CGEM plays a very special and important role in China stock market for it bearing a heavy burden of responsibility for the development of China's high-tech and high-growing enterprises.IPOs (Initial Public Offerings), is a behavior that a company sells its stocks (common stocks) publicly to investors on the stock market for the first time. Analysis indicates that IPOs underpricing is a common phenomenon all over the stock market of various countries. IPOs underpricing of CGEM is more obvious, but there is few articles of systematic study on it over current domestic academics. This thesis tried to analysis IPOs underpricing of CGEM theoretically with empirical evidence based on studying relevant domestic and foreign studies.At first, the thesis retrospected findings of domestic and foreign researchers about IPOs underpricing, elaborated peculiarities, current situation, background of establishment, market trends and effection factors of CGEM. Issuing requirement, ways of issuing, pricing methods and issuing price of new stocks of CGEM was briefly analyzed later.Later, underpricing of new stocks issuing of CGEM and short-medium term tendency of new stocks were studied in this thesis. Influence to IPOs underpricing of CGEM by factors as the price earning ratio,the intervals of issuing to publicing,issuing scale, initial opening rosing extent, IPOs prices, first day trading ratio,and lucky number ratioetc, was studied by analyzing of IPOs underpricing of CGEM by statistic software. The short-medium term performance of CGEM new stocks after issuing was analyzed with comparing with current achievements in relevant research of the causes of new stocks underpricing of SMES Board for finding out some special factors of CGEM new stock underpricing.At last, with theoretical study and empirical evidence research motioned above, initial opening rosing extent was supposed to be one of the main performances of IPOs underpricing of CGEM and, first day trading ratio,and lucky number ratio were the main factors of IPOs underpricing of CGEM. the price earning ratio and IPOs prices, the main factors of SMES Board IPOs underpricing have no significant influence of CGEM underpricing. And found the listing on GEM IPOs, stir in after the first day after listing, in the short-medium term maintenance of a weak stock price fell into the finishing stage. Suggestions were given in the end of this thesis, such as controling the first day rosing extent, increasing the number of listed companies of CGEM and decreasing the interval of new stock issuing time and going public time etc.