Research On The Pricing Of China Large State-Owned Enterprises' IPO Abroad

In recent years, more and more local and high-quality business enterprises rushed to IPO abroad. This trend caused many local scholars worried, and caused many related issues. The current financing ability of our local stock market is limited, and there're still a lot of business enterprises have strong desire to IPO abroad. The issue of "the state-owned properties are cheaply sold" makes these business enterprises felt more pressure. Therefore, the study of the oversea listed companies'IPO price level exactly is a reasonable topic and is very meaningful.Aim at the current issue of the oversea IPO price problem, according to the current IPO pricing method, the author selects the initial P/E ratio, P/B ratio and underpricing to be the guide lines. Through the statistics of several main stock markets'IPO data, the author firstly consider whether the data from different markets can be compared, then make the comparison with the data of the local A share, to see whether the oversea IPO pricing level is too low.Chapter 1 of this paper is an introduction, mainly introducing the background, related research overview, the way of thinking and the structure of the study. Chapter 2 is a summary introduction about current basic theories of the IPO pricing, the IPO pricing methods, the phenomenon and reason of underpricing, and the differences of IPO systems between China and foreign countries. In chapter 3, the author first introduce the IPO conditions of several main stock markets, then make the comparison with the data of the local A share market. According to the current condition of the oversea IPOs, the author pay attention to NYSE and HKSE, collect and analyze the initial P/E ratio, P/B ratio and underpricing ratio. The author want to demonstrate whether there're differences between the pricing level in different markets and whether the pricing level can be compared through the comparison of the data. In chapter 4, the author did the empirical analysis to have further analysis through three aspects: the whole markets, IPO years, and the belonged industries. The last chapter is the summarization of the whole paper.The empirical analysis shows that the oversea IPO pricing level can't be compared with the emerging and reforming markets but with the developed markets such as New York and Hong Kong, especially the listed companies in HKSE exempt H shares as the benchmark. The empirical analysis shows that the pricing of China Stated-owned enterprises listed abroad are in whole reasonable, and there isn't any systematic undervaluation.