Study On The Reasons And Countermeasures About IPO Failure Of A-Share Market In China

With the rapid development of securities market in China, the economy developed obviously. many scholars have become interested on the object of study. Strengthen and improve the capital market needs to have more participations. Investors also need more companies listed to expand investment channel. The company for their own interests and development needs, also have strong motivation to market. Above all, IPO has become the focus of many scholars. This paper adopts case analysis, based on the interest of minority investors, researching the rensons and suggestions on IPO failures.This paper have a total of seven chapters. Each chapter is organized as follows.Chapter 1 statement the research background significance, and objective.The second chapter, this is the theoretical basis. According to this study which is based on the interests of investors perspective, firstly summed up the relatively mature theories on protection of the interests of investors. These theories are not only the theoretical basis of the following case studies, but also the theoretical basis of literature review. According to the theory, from the ownership structure and related party transactions perspective, summarized the relationship between investors’interests protection.In the third chapter, statement the evolution of the IPO system. Classified on the regulations, distribution system and pricing system this three aspects. This part provide a legal basis for this paper. The contents of this chapter and the last chapter laid the cornerstone for the later studies.Chapters IV and V, these two chapters is the theme of this paper. Firstly described the status of A-share market in China with descriptive statistics. Then concluded negative opinions for IPO IPO failed firms in 2011 issued by the Commission. Based on the analysis, introduced the case of HaiNan Rubber this company. In this part, analyzed the problems of the firm from many different perspectives. Different stakeholders will get inspiration from the analysis. Chapter VI, Based on statistics and case studies, put forward my own views and Suggestions.Chapter VII, from the discussion above, this part pointed out the limitation and areas in need of improvement.This paper standed on the interests of investors, analyzed the reasons of IPO failure and proposed improvement suggestions. This not only can improve the pass rate of the applicants, but also can enhance the audit departments’work efficiency, For investors, can also reduce their investment risk.As of this writing there are some shortcomings. Firstly, used the new system which was introduced in 2006. since the data, only four years 2007-2010, the amount of data was not big enough. Secondly, many reasons can lead IPO faliure, while the paper is just on one inspection. This will be a bit one-sided.