Research On IPO Pricing Of Commercial Banks In China

Commercial banks as absolute subject national economies, in a country can bequite a heavy burden to shoulder. For my country, the development and expansion ofcommercial banks, for the aspects of China’s modernization, rapid economicdevelopment and the industry’s technological advances, such as solid foundation,making commercial banks become the irreplaceable pillar of the economy.Meanwhile, the economy continues to advance the pace of time is also warning theChinese commercial banks should continue to develop its own forward, keepingdomestic and international economic situation, the social situation in the pace ofprogress, continuously improve the inadequate mining advantages, the developmentpotential.For the "transition" stage China’s securities market, most powerful listedcompanies have chosen this channel to become the object of market acceptance,commercial banks are no exception. To effectively raise funds by issuing shares andreasonable commercial banks to broaden the financing channels, but also the issue ofhow the stock price has become a critical issue.Commercial banks choose to increase the intrinsic value IPO, while the growthdepends on the intrinsic value of the commercial bank’s own unique competitiveadvantage, to convert it into future profitability. IPO pricing is the identification ofthe commercial bank’s own competitive advantage, evaluate, predict the results to becommunicated to the process in the form of shares of the capital market.China’s securities market is not perfect, however, the issue of new shares isfacing many problems, such as the proposed information disclosure of listedcompanies in the bundled prospective conduct quality problems, IPO and secondarymarket ups and downs, the interests of the maintenance of the behavior ofintermediaries, etc. China’s securities market imperfections will cause the IPO system, commercial banks IPO channels facing a severe test, resulting in the listing of thenew shares issued when the price becomes quite difficult to determine the problem.IPO pricing related basic theory can be said to have been more perfect, from itscreation to its development so far in decades, related practices at home and abroad areto some extent explain the rationality of the IPO pricing mechanism, but compared toforeign successful use of the investment bank, China’s securities market is not enoughproper IPO pricing theory, because the stock market does not exist in the foreignsecurities market of mature, IPO pricingtheory insufficient understanding in place, the corporate governance structure isnot reasonable, investors are irrational investment etc., but more important is to find asuitable IPO pricing method for providing a favorable IPO price model to follow,making the listed commercial banks and investors to get practical protection.Thus, we can see that the IPO pricing of commercial banks is a very importantsense, this paper established model to analyze various factors affecting thecommercial banks in China IPO pricing, and to explore the reasons for the presenceof high underpricing, combined with China the current economic situation, comparedto the pricing mechanism abroad, analyze the reasons and as a corrective force beactively adjust policy recommendations, deepen the reform of the system ofcommercial banks, the development of our national economy.