The Research On The Characteristics Of Demand-to-offer Ratio Information Indicated In Our Stock Market

International stock markets have recorded for 400 years, the market price on the first day after the IPO listing is far higher than the issue price that is cal ed the IPO underpricing(Initial Public Offerings underpricing) phenomenon, IPO underpricing of capital assets in the stock market reflects pricing efficiency and also reflects the degree of functioning of the stock market financing. Due to IPO underpricing phenomenon occurring, between the issuance market and the trading market has a huge spread, resulting in the IPO process where there will be a higher rate of excess returns. And this high IPO underpricing provides a risk-free arbitrage opportunities, which form a large collection of funds to stock primary market. In addition to funds withdrawal behavior will lead to imbalance in supply and demand mechanisms, excess returns of stock primary market will stimulate the market speculation, which will result in the secondary market price is extremely high, and which not only is not conducive to the stable development of the market, but is likely to damage the interests of investors. Therefore, we should actively take measures to control the IPO underpricing to reduce arbitrage opportunities of the market.Since the founding of New China, the development of China’s stock market is less than 30 years from the fist shares issued to the public. As a product of the joint-stock reform of state-owned enterprises, the stock market has become an important part of our economic system, the IPO underpricing phenomenon also occurred in the Chinese stock market, its high rate of return sought after by investors. Due to the amount of funds of purchasing shares of newly listed companies often far beyond the plan of raising the amount of money in stock issuance process, company needs to assign shares through a random manner in all subscription funds in order to ensuring the fairness of the process. A success rate of both high and low, each stock’s performance are not the same, which can reflect the degree of sought after investors in the stock. In order to protecting the interests of retail investors for IPO subscription in a certain extent in china, IPO subscription is into the online and offline.Based on the existing theory of IPO underpricing, the paper begins from the theory of investor behavior and Asymmetric Information.Through empirical research of 1144 stocks of initial public offerings from the year of 2006 to 2013 analysis the stock in the IPO process, the online demand-to-offer ratio and offline demand-to-offer ratio of the IPO first-day returns and IPO’s long-term return rates, which shown is benefit to reveal IPO underpricing phenomenon. Based on the results, the paper suggests that it is necessary to adhere the IPO market in China’s stock market, improve the quality of newly listed companies, and reduce the asymmetry information in stock offering process, add more investment channels for individual investors, provide more services to retail investors, establish the correct investment philosophy.