Study On IPO Fundraising Supervision

It is an unique phenomenon in China's capital market that IPO over fundraising and frequent changes of its investment project.The raising and using IPO capital comprise the supervision system of China's IPO fundraising.The existing research shows that most enterprises' IPO over fundraising and changes of their investment project are exerting negative impact on the use of fundraising effectively in different degrees.Meanwhile,the relative supervising mechanism on fundraising field is also constantly improved and completed.The over fundraising which has been lasted for decades are now curbed by authorities,but the non-marketization regulatory measures that keep over fundraising has twisted the nature of IPO equity financing.To some extent,it covers the real capital needs of listed companies,and it caused the phenomenon that the raised funds can't meet enterprise needs spring out which led to frequently financing behavior occur on the market,and it also aggravated the cost of financing.Meanwhile,the problem of frequent changes of investment project during the progress of fundraising has hardly soothed till now.Based on the above background,the paper studies the two aspects of fundraising and utilization of IPO capital.The conclusion is: the roots that caused over fundraising is the IPO verification which controls the IPO's supplying.The current regulatory measures is non-marketing,it caused IPO capital can't meet the need of enterprises and makes them to re-finance again and again.Project-based Equity financing system is the institutional root that makes fundraising and investment project changing frequently.Namely,the approval system with long audit circle and the project-based stock financing regulatory mechanism are the systematic roots why the IPO fundraising filed has so many problems.At last,the writer proposes the relative policy suggestions.The paper is intend to analyze from the following aspects:Chapter 1: Introduction.The chapter states the background and significance of the research and presents the study objectives and main contents.It also points out the innovation and research methods applied in the paper.Chapter 2: literature reviews.Researches about over fundraising and the changes of investment projects at home and abroad are reviewed and summarized in this chapter.Chapter 3: the analysis of IPO fundraising and its utilization.The chapter reviews the situation of IPO fundraising over the years,the situation that during the over fundraising period,the policy effects on strictly controlling over fundraising and enterprises' refinancing phenomenon caused by IPO capital can't meet the demand of enterprises,and presents a case to make supporting explanation.Chapter 4: the regulatory mechanism of IPO fund raising and some problems it exists.The chapter states the regulatory mechanism of fundraising and utilization,and studies the internal regulatory experiences to make comparison.Finally it points out the institutional root of the problems and the writer also offers some suggestions for solving the problems.Chapter 5: Conclusion and policy suggestions.The chapter put forward the relative suggestions about how to improve China's IPO fundraising regulatory mechanism.