| The IPO market involves government regulators,various intermediary agencies,listed companies,investors and some other market participants.It is the linkage between companies and investors.It is an important channel for the financing and growth of listed companies,and the foundation of secondary market's existence and development.With the implementation of the IPO listing new deal and the transition of examination to the registration system,the company's IPO progress has been greatly accelerated since 2017,and the issuance of 2 new shares a day and 10 new stocks per week has become universal.It shows that in 2017,the A-share market had a total of 438 IPOs,raising a total of 230.1 billion yuan,which was a year-on-year increase of 92% and 54% respectively.The A-share market's capacity expansion was surprising.What makes A-share investors feel the most is the weak market.Whenever this time the sound of controlling the pace of the issuance of new shares will arise,it seems to have become the law in the A-share market.As long as the market fluctuates,it will take the IPO operation.During the period from 1994 to 2015,the China Securities Regulatory Commission suspended the IPO for nine times when the market price fell sharply or fell for a long time,but the effect was not satisfactory.It seems whenever the A shares fall it will postpone or suspend the issuance of IPO.The author believes that such operation do not have any theoretical basis at all.They not only disrupt the normal financing behavior of the market,but also are not conducive to the advancement of the A-share marketization process.It is of great practical significance for us to study whether the issuance of new shares has an impact on market prices and how it affects in China.China's new stock market has its distinctive characteristics.First,it is in its infancy,and it retains obvious traces of the planned economy;Second,it gathers a large number of noise investors,and irrational emotions can easily affect the stock price;Third,there are short-selling restrictions.Therefore,the anomalies of the IPO market in China should be different from the intrinsic mechanism of the foreign market,and there are certain links between these anomalies.The investor sentiment theory in behavioral finance can better explain the anomalies in the IPO market.The article starts with the three big anomalies of IPO and concludes that investors' irrational sentiment is an important factor affecting IPO market performance.And the theory that the “blood-blowing effect” caused by new stocks and the expansion of supply to the market equilibrium affect the secondary market.The effect is that the IPO will cause a short-term decline to the stock market.Afterwards,based on the restart of the IPO after the share-trading reform,the descriptive statistics of the IPO market data from June 2006 to December 2017 we found the law between the IPO listing and market conditions,and suggested that investor sentiment as a conductive intermediary for the IPO financing impact on the stock market.The paper assume that investors' behavior affects the stock market.Investor sentiment including the investor's expected response to the “press” market for new stocks,and the current low-risk and high-yield investment in the primary market aggravates the diversion of funds from the secondary market.This article selects 2917 trading days of SSE as a sample,and divides the full sample into new stock issuance announcement date,issuing date,thawing date,listing announcement date,listing date,day after listing date,and ordinary trading day unrelated to the issuance of new shares.We use GARCH model to compare the difference among the performance of market indicators on the day of release announcement,issuing date and general trading day,the thawing and freezing period,the date of listing announcement,the listing date and the ordinary trading day,the day after the listing date and the listing date.We use the model to discuss whether the relevant time for the issuance of new shares had an impact on the secondary market.It was found that there was a negative excess market return on the issuance announcement date,issuing date and listing date,and the market return rate on the day after the listing date and the unfreezing day was reversed from the previous day.The market turnover rate dropped significantly on the IPO issuing date and the listing date,and it rebounded on the unfreezing day.There was a significant amount of seller-initiated trading value on the issuance announcement day and a significant buyer-initiated trading value on the unfreezing day.With the IPO expanding after 2016,the impact of new stocks on the secondary market fluctuation weakened.The conclusion of this paper is that most of IPO frozen funds come from off-site,and a small portion of on-site fund still has a certain impact on the fluctuations of the Shanghai Composite Index;the high IPO underpricing will affect investors' sentiment thus affect the stock market fluctuation.In the end,the thesis make relevant recommendations that it should persist in market-oriented reforms;the IPO admittance should lie more emphasis on the qualitative than quantitative control;strengthen the supervision of listed companies;establish and improve the delisting mechanism;and rational investment education for investor. |
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