An Empirical Analysis Of IPO Underpricing And Its Influencing Factors

Since the birth of China's stock market,the underpricing rate of new stocks has been stubbornly high.The high price reduction rate has not only led to the waste of resources,but also disrupted the market.Although some foreign experiences can be used for reference at a certain level,due to China's unique national conditions,many foreign experiences do not apply in China.A unique national condition of China's securities market is the difference in the issuance system of new shares.For this reason,China has also undergone active reforms.After the share reform,the China Securities Regulatory Commission successively promulgated a series of documents and conduct four-stage reform of the new share issuance system.Through the empirical study,this paper finds that the first three stages of the reform of the IPO system effectively reduce the IPO underpricing rate,and the IPO underpricing rate has decreased from 164.17% before the reform to 29.19% in the third stage.Although the fourth stage,the IPO underpricing rate began to rise,but the fourth stage of the increase in the IPO underpricing rate is mainly at the time of the market in the bull market,but also with the highest increase in the new share of new shares in January 1,2014 has a close relationship.The highest rise limit of new shares tried to restrain the "stir fry" phenomenon on the market,but after the implementation,the majority of new shares reached 44% limit on the first day of the market,and continued to increase in the next few transactions,and the total increase was even far higher than before the first day of listing.Therefore,this article thinks that the four stage of the IPO reform has achieved certain results,but still needs further reform.