Research Of Inquiry System Reform Effect On Chinese Stock Market

IPO pricing has been always the core topic of the stock issue market.With the continuous development of equity financing on chinese capitalmarket, the importance of reasonable pricing of new shares is particularlysignificant. The reasonable pricing of the new shares, is not only related withthe correct valuation of the stock, but with a country’s distribution system andpricing method.At first the dissertation reviews the relevant literature and the basictheory at home and abroad of underpricing of the new shares, in all kinds oftheories, information asymmetry theory is more popular and is most agreed byscholars. Then against the fact that underpricing phenomenon is largelycaused information asymmetry, we draw the subject which can effectivelyreduce the the degree of information asymmetry-inquiry system. the systemcan be issued by improving the information asymmetry among the differentactors of the market, allowing issuers and underwriters to obtain the effectivedemand information of institutional investors and real pricing information,while investors can get more real company value information. The reductionof the degree of information asymmetry is good to reasonable pricing thus canreduce the underpricing degree.After the review on the application of inquiry system in china, we obtaininadequacies of the inquiry system in the application process throughqualitative analysisTo these deficiencies, the goverment take a number of reform measures,Then the paper conducts a descriptive analysis to the reform situation of theinquiry system in general, and then select the new shares issued at the twostages before and after the inquiry system reform, Through a certain way ofscreening and ultimately selected245and233samples respectively forempirical research through establishing regression models, and then contrastthe changes in the coefficient of the regression results and Market indicatorsas well as investor behaviors of the two stages, analyze the effect broughtabout by the inquiry system reform and the shortcomings, at last put forwardpolicy recommendations.The dissertation is based on the current market environment and institutional environment with inquiry system reform as the Entry point,making deep study of the method to improve the stock pricing efficiency. Thestudy can provide a new way for the research of new shares pricing issues, andcan provide a useful reference for the inquiry system reform.