Empirical Study Of IPO Reform’s Effect After The IPO Restart In China

With the revolution of China’s IPO (initial public offering) system, the stock market of China has moved into another stage. The supervision model of new issues, the way of distribution and the pricing method have experienced many times of reform for the purpose to make the market more efficient and to make the allocation of resources well done. Every time CSRC (China Securities Regulatory Commission) raised a new policy to accommodate with the prevailing stock market, the effect followed differs. For the time being, as we know, CSRC is planning to carry out some new policy to promote the revolution of China’s stock market.The development of the securities market always accompanies with the reform of the IPO system. Any problems in the IPO system are likely to affect the allocation of resources effectively. All in all, the reforms of the IPO system are mainly concentrated in the following aspects:the supervision model of new issues, the issue of new shares as well as the new pricing method.Here in this paper, at first, there is a review of the IPO system reform process in our country; secondly we discussed the purposes and principles of the reforms of the IPO system in our country.On November30th,2013, the SFC issued<The suggestions about further IPO reforms>. It began on January8th,2014when the IPO restarted. The purposes of the suggestions are to effectively reduce the IPO first-day high excess returns, solve the problems of the super fund and to protect the interests of small and medium-sized investors. Its main purpose is to control the phenomenon of IPOs sauteing, reduce the IPO super fund, by making more information disclosure in the process of IPOs to protect the interests of small and medium-sized investors. This article is written when our country has just launched a new IPO system reform.The article make a comparison between the shares issued in the January of2014and the shares issued in2012.By the empirical analysis, the paper answered the following questions:is the new suggestions about the reforms of the IPO system really dampened speculation on the first day of the shares issue? IS the policy of temporary suspended on the first day of issue had advantage on the market stable or had disadvantage on the efficient of the secondary market of the securities? Should our country make use of the practice to allow old stock transfer? Does the new shares allotment mechanism reform harm the interests of small and medium-sized investors? What should we pay attention to the shares allotment mechanism?The fifth part of the paper focuses on the practice to allow old stock transfer, temporarily suspended policy on the first day of the shares issued. The paper analyzes these new policies issued from various angles to test whether this policy are truly capable of achieving the regulators’ intentions.The sixth part of the paper makes some detailed policy suggestions according to the effect of this reform, the suggestions include:1.Making full efforts to protect the rights and interests of small and medium-sized investors.2.Making our securities issued by the relevant legal system and maintain the related reform to be consistency with the spirit of the law in our country.3.The policy of the reforms needs dynamic adjustment and timely rectification.4.Comply with the rules of the development of the securities market in our country, and improve the policy regulation gradually.5.More freedom of the IPO system.At last, there are some innovations in his paper in the following aspects:1.This paper studies the latest reform in the IPO systems in recent years, so on the basis of previous research on policy, data update, policy research for the IPO has timeliness.2.This article not only had theoretical analysis but also analyzed the data in the real market. The paper verified whether the market data to support the effective reform measures, make the argument more persuasive.3.The author of this paper makes a detailed analysis about some measures of the reform analysis and commented the advantages and disadvantages of reform measures from each aspect, but also put forward some policy Suggestions for the reform.