Research On Buchang Pharma Break

For a long time,the research on stock breakage has always been a hot research direction in the capital market.With the rapid development of China's securities market,the number of listed companies has also increased.The discovery of stock breaks has also appeared frequently in China,causing great impact on the market and investors.Troubled.After the restart of the IPO in 2014,the stock breakage image has been relieved to a certain extent,and the new stocks tend to maintain a good trend after listing.However,the good times did not last long.As the stocks of Buchang Pharma and Triangle Tire,which were listed after the IPO New Deal in 2016,fell below the issue price at the end of 2017,people began to pay more attention to the issue of stock breaks.The break of stocks not only hinders the good development momentum of China's securities market,but also causes losses to the listed companies themselves and the majority of investors.Therefore,it is of great significance to conduct in-depth research on stock breakage,analyze its internal causes and propose corresponding measures.Based on the above purposes,this paper will select step-based pharmaceuticals as a research case through the case analysis method,study the reasons for the break-up of the step-based pharmaceuticals,analyze the impacts caused by the break-up,and then draw relevant conclusions and make recommendations.Firstly,the introduction part introduces the research background,research significance and research framework of this paper.It also organizes the existing research results and theory of stock breakage,the basic background of step pharmaceutical and the development process of China's stock market,laying the foundation for the full text.Secondly,it analyzes the reasons for the break of the step-by-step pharmaceuticals from external reasons and internal reasons.The external reasons include the issue price-to-earnings ratio and the issue price are too high,the huge restricted shares are lifted to affect the stock price,and the deleveraging policy affects the stock trend;internal reasons include After the listing,the performance has fallen sharply,the sales of the main products have been frustrated,and the investment in research and development has been insufficient.Thirdly,from the three aspects of investors,step pharmaceutical itself and the stock market,analyze the impact of the step-breaking pharmaceuticals.Afterwards,the paper concludes that the break-up of Buchang Pharma is caused by a combination of factors,including the following:(1)The issuer and the sponsor become the community of interest and jointly raise the issue price;(2)After the lifting of the ban on the restricted shares,the selling of the shareholders of the restricted shares caused the stock price to fall;(3)the performance of the company after the listing went into the market and the stock price trend;(4)the company's R&D investment was insufficient and the source of income was single,and the future development prospects were seriously affected.Finally,the paper puts forward the following suggestions:(1)strengthen information disclosure;(2)strictly supervise sponsors to avoid excessively raising the issue price;(3)protect small and medium investors;(4)promote reform of new share issuance registration system;(5)Improve the ability of enterprises to innovate;(6)Prevent excessive financial packaging.I hope this article can help improve the research on stock breakage and promote the good development of China's stock market.