Research On The Influencing Factors Of IPO Under-pricing In Chinese A-share Market

The establishment time of China's securities market is short relatively,the extent of IPO under-pricing on the A stock market higher than the foreign mature capital market Generally,the research on speculative atmosphere has seriously hampered the effective allocation of social resources.At the end of 2013,the stock exchange issued a notice,which set a 44 percent limit and a 36 percent drop on the first day of the new stock listing.After the fluctuation limit policy on the first day of the New stock listing were launched in 2014,IPO under-pricing calculated by traditional methods can't really reflect the level of IPO under-pricing in China A stock market.As a result,First,this paper analyzes the current situation of IPO under-pricing in China A stock market,the main conclusions are as follows:First,after the implementation of the policy,new stock listing in the early appears The phenomenon of continuous "one word board"limit,the relatively low turnover rate and the "one word board" were broken during the period of"A word board" rise and stop,and the sudden increase of the turnover rate on the day in China A stock market.Therefore,this article thinks that the high degree of under-pricing of IPO began on the first day of New stock listing,but was not fully reflected until the "one word board" was broken.Second,this article uses the relative change between closing price and issuing price on the day of the "one word board" fluctuation to be broken,to measure the rate of IPO under-pricing,and uses the addition of the new stock's turnover rate from the first day of New stock listing to the day of the "one word board" fluctuation to be broken to measure the turnover rate of the first day of New stock listing.Third,this paper analyzes the current situation of IPO under-pricing in China A stock market.This study finds:(1)There is no significant reduction of the IPO under-pricing in China,and there is still A high degree of IPO under-pricing in China A stock market.(2)After the fluctuation limit policy on the first day of the New stock listing were launched,the IPO under-pricing rate of China's entire A stock market and the three major market segments has undergone a process of increasing and winding down.(3)the extent of IPO under-pricing in the main board market is the lowes,medium and small board market is second,and GEM market is the highest.Secondly,this paper takes the new shares listed in the three major market sectors from January 1,2014 to June 30,2017 as samples to select relevant indicators,which can reflect the stock market information asymmetry degree and investor sentiment condition to be the explanatory variables,and this paper makes an empirical analysis on the factors that affect the extent of IPO under-pricing of the three major markets By establishing a multivariate linear regression model.The empirical results are as follows:(1)In the indicators of investor sentiment,online distribution of the number of signatures and market returns on the first day of trading all are the factors that affect the IPO under-pricing of the three major sectors;and "turnover rate of the first day of listing" only affects the main board and small board IPO under-pricing.(2)In the indicators of information asymmetry,the issue price is the common factor that affects the IPO under-pricing of the three major sectors;the time interval between issuance and listing is only the factor affecting the IPO under-pricing of the main board.Therefore,in general,the information asymmetry and investor sentiment in the stock market are all the factors that affect the IPO under-pricing of China's A stock market.In the end,this paper puts forward relevant policy suggestions to reduce the extent of IPO under-pricing in China's A stock market from reducing the information asymmetry of stock market and stabilizing investor sentiment.Specifically,by reducing the administrative control,optimizing the regulatory mechanism and improving the information disclosure system,the information asymmetry between the issuer,the underwriter and the investor is reduced;by increasing the supply of new shares,distributing idle funds and cultivating rational investors to stabilize investor sentiment.