| On June 13,2019,the Science and Technology Innovation Board of China Shanghai Stock Exchange was officially opened.The Science and Technology Innovation Board carries the new demands of national economic and scientific development,mainly serving the science and technology innovation enterprises that are in line with national strategies,with breakthroughs in key technologies and high market recognition.For the first time,the registration system is piloted in the Board,which promotes the market-oriented development of China’s capital market and provides a good institutional soil for fund-raising of high-tech enterprises by stipulating a series of new systems for issuance,trading and delisting.On July22,2019,the first batch of companies on the Board were listed.On August 8,the second batch of companies were listed.As of July 15,2021,the second anniversary of the opening of the Science and Technology Innovation Board,it has grown form 25 companies to over 310 companies,and the market value has expanded from RMB 550 billion to RMB 4.9 trillion.The majority of companies on the secondary market have risen sharply,with more than 65% of them rising by more than 100% on their first day of listing.However,the market attributes of the capital market are becoming more and more prominent in the contest of the registration system of the Science and Technology Innovation Board.Unlike the approval system,the registration system emphasizes formal audit rather than substantive judgment of listed companies,which has changed the market situation of “in short supply” in the IPO market.Under the fierce market competition,there are also stocks that have broken down,indicating that the market mechanism is playing its proper role in regulating the market.In this paper,Jalon Micro-Nano,which is the first company whose price was below the initial offer price on the first day since the opening of the Board,as a case study.First,the research background,significance and methodology of this paper are briefly introduced.Secondly,a discussion is made on the relevant literature research and theoretical basis of IPO breakout,summarizing the previous research experience and conclusions.The third part introduces the special reform of the registration system of the Science and Technology Innovation Board,and briefly compares it with the approval system implemented on the main board.The fourth and fifth prats are a detailed study of the case company,starting with the general introduction of the company and its listing process and performance.On the premise that the fundamentals of the company are fair,this paper explores how the inquiry mechanism,the inquiry and pricing mechanism and the market sentiment under the registration system act on Jalon Micro-Nano,leading to its first-day breakout.Finally,I propose relevant recommendations for the conclusion drawn from the above study: Breakage is a normal phenomenon in the capital market.Small and Medium investors should obtain information through multiple channels to reduce information asymmetry and invest rationally;underwriters and organization investors should take the role of professional investors and make reasonable quotation and pricing;the exchange and listing committee,as regulators,should also use the review mechanism such as inquiry to restrain and regulate the behavior of listed companies with the system. |
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