The Study Of IPO Enquiry System

The stock market is composed of issuing market and circulation market. Same as other markets, price is also at the core of the stock market. However, the pricing problem of stock issuing market is especially important due to its more serious information asymmetry. Since the foundation of our country’s stock market, the reform of IPO pricing marketization has been in progress and a new pricing and inquiry system was introduced in2005in order to improve the efficiency of IPO pricing through the market mechanism. Thereafter, the regulators have adjusted the inquiry system in succession and also introduced an operational specification of the failure of IPO inquiry. Soon afterwards, Baling Technology became the first company which was suspended of listing for lack of institutional investors’inquiry.The thesis is based on the case of Baling Technology and it takes the failure of Baling Technology’s inquiry at the first time and the success at the second time as a breakthrough point. It takes a perspective point of view of the existing problem of the inquiry system and also put forward a suggestion of the future reform of IPO system through a systematic research and comparative analysis of the two inquiry process of Baling Technology. The thesis found that our country’s inquiry system has existing limitations such as weak price display of institutional investors, the difficulty of breaking the chain of interests between the issuers of sponsor institutions and so on. It points out that the expansion of the scope of inquiry objects, the strictness of supervising the issuers and the sponsor institutions, the gradual realization of the registration system of the listed companies and etc. will be the important concerns of the future reform of the stock issuing system. The thesis is not only of great significance to the reform of the issuing system, but is also beneficial to the profound understanding of the existing’three high’ problem and the high’break’phenomenon of IPO in the primary stock market from the angle of the system arrangement.