Research On The Influence Of Registration System On IPO Underpricing In ChiNext Market

Finance is the backbone of national economic.As an important place for direct financing of a country’s economy,the stock market plays an irreplaceable role in the development of the national economy.As the key link of new stock issuance,IPO pricing not only directly determines the success of new stock issuance,but also affects the efficiency of stock market.Since the establishment of China’s stock market in the 1990 s,with the process of economic marketization,China’s stock market has gradually liberalized from the shackles of administrative regulation and moved towards a high degree of market-oriented operation.However,in this process,there is still a certain degree of lack of IPO pricing efficiency in China’s stock market.Due to the lack of IPO pricing efficiency,China’s stock market still faces the problem of high IPO underpricing.The market-oriented reform of China’s stock market has been further deepened from the opening of the science and innovation board in2019 and the trial registration system to the implementation of the registration system on the gem in 2020.Under the new market conditions,whether the market-oriented reform of the IPO system can help alleviate the problem of IPO underpricing in China’s stock market is the focus of this paper.Based on the previous research results,this paper explores the impact of gem registration system reform on IPO Underpricing and the factors affecting IPO underpricing.In order to clarify the impact of the registration system on China’s IPO underpricing,this paper decomposes the causes of IPO underpricing on China’s gem into the irrational factors of the primary market and the secondary market,and uses the IPO data before and after the registration system on the gem to construct a stochastic frontier model and multiple regression model to empirically analyze the irrational factors of the primary market and the secondary market.The results show that in the IPO pricing,before and after the implementation of the registration system,there is not an undervaluation of the company’s value,but a high degree of overvaluation.It is concluded that the main cause of IPO underpricing in China’s gem does not come from the irrationality of primary market pricing.This paper tests the impact of the registration system on IPO underpricing by constructing a dummy variable.The empirical results show that the implementation of the registration system has a positive impact on reducing IPO underpricing.In addition,by further examining the causes of the excess return of new shares,it is found that the reason for the large excess return of new shares is the speculative factors of the secondary market.Finally,based on the conclusions drawn from the empirical part,this paper puts forward policy suggestions from three perspectives: strengthening regulatory measures,alleviating speculation in the stock market,and strengthening market construction.