A Study On Pricing Model Of New Stock

From the first company to issue shares to the public, to the end of2011,2342companieshave listed in china, market capitalization already reached21.48trillion yuan. Not only forbusinesses to raise funds to promote the development of enterprises through the issuance ofstock, but also brought benefits for the majority of investors, led to the development of thenational economy. However, due to China’s securities market started late, resulting in China’ssecurities market is imperfect, the endless stream of speculation, investors’ irrationalinvestment behavior.Each year a considerable number of enterprises to the market for the first time publicoffering to raise funds, such as the2011China’s listed companies reached271, regardless ofthe enterprise itself, or the issuance of stock, especially stock prices, are concerned by variousinterest groups. Various interest groups are trying to buy the stock undervalued by the marketto obtain excess returns. In order to keep stock market stability and healthy development, andreduce the occurrence of speculative behavior, to develop a reasonable price for new shares isparticularly important.Order to adapt to the development of China’s securities market, our governmentcontinued to develop from the system regarding the issue of new shares, distribution methodsin all aspects of regulations and policies, these policies greatly facilitate the development ofChina’s securities market, but due to many problems in China’s securities market, and theseissues are intertwined, resulting in the implementation of the policy failed to achieve goodresults. Although some of the policies achieved remarkable results at that time, when newcircumstances have arisen or ineffective implementation of the policy, resulting in theweakening effect, or even a reversal, so when our government formulate relevantpolicies must considered these.Several major stock model was compared before building the IPO pricing model, such asthe discounted dividend model, discounted cash flow technique, earnings multiples methodsand so on. Although each model is built on the previous model and improved pricing modelmade stock pricing more accurately, these stock pricing model regardless of the accuracy ofthe pricing, or operability, are still need to improvement. On this basis, the article analyzes thefactors that affect IPO pricing in China and selected non-operational accruals, the success rate, turnover rate, the issue of new shares interval, the changed value of A-share composite indexwhen stocks listed on the first day, the CPI when stocks listed on the first day, then assumethat China’s securities market in line with the vulnerable effective market, to build the IPOpricing model. Selected A shares for the sample which listed February2011to November ofthat year, at the same time in order to eliminate the independent variables between multi-colinearity, apply the partial least squares method to fit the model. The results show that: Theissue price of new shares impact on the pricing of shares greatest than others, followed by theturnover rates, the issue of the interval, the stock markets and so on, then choired Yangzi newmaterial as the model prediction object, the predictions is ideal.