Research On The Rationality Of The Pricing Of STAR MARKET Based On The Reform Of Inquiry System

Since 2013,Registration System reform has been a hot issue in China’s capital market.On June 13,2019,the Shanghai stock exchange established the STAR MARKET and implemented the Registration System for the first time,attracting a large number of high-tech enterprises to apply for listing,including many companies on the New Third Board.From July 22,2019 to March 12,2020,14 companies completed the transition from the New Third Board to the STAR MARKET.One of the most important aspects of the Registration System reform is the Inquiry system reform,which cancels the implicit restriction that the price earnings ratio of IPO should not exceed 23 times,so that the IPO price of the these company in the STAR MARKET is much higher than the market value in the New Third Board delisting,and the premium rate reaches 20%-610%.Therefore,this paper selects Jia Yuan technology,the first batch of enterprises listed on the STAR MARKET,which has changed from the New Third Board to the STAR MARKET,as a case to study the rationality of the pricing of the STAR MARKET from the perspective of the Inquiry system reform.First of all,it introduces Jia Yuan technology company,industry background and the current situation of STAR MARKET,analyzes its historical performance in the New Third Board,as well as the process,reason and relevant system of transferring the board.Secondly,it studies the enterprise value deeply.This paper uses EVA valuation model to analyze the valuation and sensitivity of Jia Yuan technology,compares it with IPO pricing of STAR MARKET,and uses Black Scholes option pricing model to prove it.Then it comes to the conclusion: under the condition that the IPO price of STAR MARKET breaks the implicit limit of 23 times of P / E ratio,the IPO price of Jia Yuan technology is higher than the delisting market value premium rate of the New Third Board.In the case of reasonable indicators,the premium rate of STAR MARKET pricing relative to the value of Jia Yuan technology enterprise calculated by EVA valuation model is as high as 65.77%,which indicates that the IPO pricing of STAR MARKET may deviate from the enterprise value;at the same time,the premium rate of STAR MARKET IPO pricing relative to Black Scholes option pricing model is as high as 89.02%,which also proves the IPO of STAR MARKET Pricing deviation from enterprise value.After listing,Jia Yuan technology’s stock price anchor ratio is relatively high,and relative to the Market Index volatility,showing a once low situation,indicating that its stock price may have a bubble,so that the stock price has always been close to the intrinsic value of the enterprise.At last,this paper proposes that investors should be more cautious about the STAR MARKET,and the relevant supervision and delisting system of the STAR MARKET should be more perfect.