The Impact Of IPO's Pause And Restart On Chinese Stock Market

Stock market is the barometer of national economy and to some extent,able to reflect the change of market.While the system of Chinese stock market is special.The launch of new stocks(IPO)influences the stock market and during the reform of launch system,the management will suspend or restart IPO every time the change of the system may affects the market dramatically.In turn,both suspension and restart will influence the stock market.Studying the suspension and the restart of IPO makes a significant difference to improve the stock market in China.Base on the development of stock market in China and compared with the “strange situation” in the launch market of new stocks in other countries,this paper will find out the differences and similarities in our country when launching new stocks,analyze the characteristics of IPO market in China by summarizing research outcomes overseas,thus come up with the idea that IPO has an effect on second-level stock market.When the A-stock meets policy reform or emergency,to forbid the shake of the stock market,regulators will not launch new stocks for a period of time until the stable situation reoccurs.There are nine pause and restart of new stocks totally.The decision of pausing and starting the IPO will influence the A-stock market.The system reform in new stocks will take function on the healthy development of the A-stock.Using the methods of literature review?method of comparative analysis?listing examples of historical events and event study,this paper will analyze the influence of IPO related elements on the stock market in China,and the background and market performance of each suspension and restart of new stocks,coming up with the following conclusion: the suspension of IPO has a relatively positive influence on the stock market;while the influence of the restart of IPO is relatively negative,but its influence is limited.Within a short period of the suspension and the restart of IPO,the stock market always has the same trend with the previous period,and the suspension and restart of IPO cannot decide the trend of the stock market,but will increase the fluctuation.The suspension and restart cannot solve the basic issue of Chinese stock market and the healthy development of Chinese stock market requires improved system.At last,this paper will propose constructive advice on the basis of some existing issues on the Chinese stock market,aiming to improve the regulatory efficiency in the financial market and bring healthy and stable market in China.