The Studies Of Case About The Failure Of IPO

Since the reform and opening up three decades ago, China has made great achievement with therapid development of the economy. Within the thirty years, not only the real economy which is the solidfoundation of our country, but also the virtual economy has achieved considerable development. In addition,the modern market system in China is gradually improving and multi-level capital markets is developing.market-oriented reforms in interest rate and exchange rate has been steadily pushed forward under thedirection of our country. Althougth there are some problems In the process of market development, RMBcapital projects has been convertibled gradually. In a word, everything in the sound development is in goodcondition. as the backbone of the financial markets, as the important part of the national economy, Thestock market has made great contributions to China’s economic growth and has brought unprecedentedvitality and development platform, and also become the most dynamic growth in the nationaleconomy..But behind the relatively steady and rapid economic development, we can not deny that there area variety of issues in the stock markets. There are many problems in the Initial public offering which are thesource of the stock, such as related party transactions, interbank the competition which is not disclosed,such as the number of inquiry body, these problems have reduce the efficiency of the stock market in theallocation of resources and the impact of the social benefits.Initial public offering plays a key role in the way of corporation entering the capital market toraise funds. in other words, corporation have no choice but to enter the Initial public offering.so there aremany corporation in the way of Initial public offering,some made a success,but some fails. we can see twodifferent phenomenon in the road, on the one hand, many companies successfully listed on the stock toraise funds to promote the development and growth of the enterprise; the other hand, a lot of corporationcarrying the great dream of making a success pitched down on the road, debilitating. In Decade we canlisted out a long list of names of corporation which die in the way. many of them are the industry leader.The contrast of these two aspects prompted us to think a lot about the Initial public offering.Initial publicoffering is the key step that company boarded capital markets and make full use of the social loafing resources to accept the test of the market and competition in the market and grow their own strength.if theymeet the failure, not only blocked are the reform, but also the greatly decreased, in financing capacity eitherbank loans or policy support, in addition, the company’s social reputation and social status of theseintangible assets will be greatly diminished. in a word, failure in Initial public offering is very heavy, socompanies should treat it cautiously. Initial public offering is a critical stage in the development of thecompany. it is believed that companies that want their Initial public offering coming true must be wellthought out and carefully handle. However, we can not ignore the reality that there are still a lot ofcompanies falling in their way and covered with wounds and losses, so we should treat it seriously andthink carefully and analysis in-depth to find out the reasons, in that we can avoid the mistakes made by thepreviously corporation in the subsequent preparation.many companies fail and lose in the way, although many companies are forced to change ownersafter they failed, there is still more corporations which persistently rush to the journey, then what kind ofmagic does Initial public offering have,how we can see his importance and significance? What factors thatdetermine the success or failure of the corporate in Initial public offering.what kind of disadvantages thatthe corporate can not avoid, What they should do to break down these barrier to achieve successfullyissued shares and sustainable development? Depending on the social environment and the background ofthe case, contacting the reality of the economic situation, according to the general law of the companiesdeveloping in Initial public offering, combining with the specific company cases, we analyze and discussthe reason for the failure, we think that if we want to solve the problem that companies failed in the stock,market, the company should accumulate capital and stable operation of the layer, except it,they shouldchoose a profound experience and a strong sense of responsibility of the sponsor organization and choosethe appropriate timing of the issue to lower the capital risk and moral hazard in the issuance process inorder to achieve sustainable development of the smooth issuance of shares of listed companies as well ascompany. The method of the Discussion about The Case which are given comparative analysis andempirical analysis fit universality.In the first chapter, we summary the thesis of the opportunities and challenges which thecompany encounter in the development of the environment in which the world economy and introduce theChinese securities market. Initial public offering and its course of development in detail.Chapter II proposed a specific company which failed in Initial public offering and summarize and list a series ofcircumstances. The third chapter analysis and research Baling Technology Co., Ltd. in-depth from multipleangles. The fourth Chapter mainly talked about the inspiration and sentiment through the analysis of thiscase, as well as a summary of past experience and lessons learned. the last chapter talks the references inthe process of completing this thesis.