Research On The Impact Of IPO Pricing System On IPO Pricing Efficiency

With the rapid development of China’s stock market,as the entrance to the stock market,the initial public offering(IPO)system has been reformed many times.On the whole,issuance pricing has experienced the following three stages: non market-oriented pricing of administrative intervention under the approval system,semi market-oriented pricing of controlling the upper limit of P / E ratio under the approval system,and fully market-oriented inquiry pricing under the pilot registration system.At present,the Sci-Tech Innovation Board(STAR)and the Growth Enterprise Market(GEM)have both passed the second anniversary of the pilot registration system reform,and their inquiry mechanism mainly shows the characteristics of weakening P/E ratio control and tilting inquiry objects to institutions.Under the background of fully implementing the pilot registration system reform of the STAR and the GEM,as well as the full implementation of the main board registration system reform,combined with the changes of China’s new share pricing system reform,the research on IPO pricing efficiency is comprehensively analyzed to provide theoretical suggestions and guidance for the market-oriented reform of China’s securities market IPO pricing.Whether the IPO pricing efficiency of China’s stock market has improved with the repeated reform of the IPO pricing system? What is the relationship between IPO pricing efficiency and various influencing factors? The study of the above issues has important implications for further promoting the market-oriented reform of China’s capital market.This paper first reviewed the relevant research at home and abroad,sorted out the definition and types of IPO pricing system,including fixed price pricing,auction bidding pricing,cumulative bidding inquiry and its portfolio pricing,and sorted out the definition and measurement indicators of IPO pricing efficiency,including the first day of listing return,the deviation degree between the issue price and the company’s valuation,as well as the measurement through the establishment of measurement models,In the world,the research on IPO pricing efficiency has always been clarified through the research on the index of IPO underpricing level.Scholars mainly explain and study the reasons for the high underpricing rate of new shares through information asymmetry,principal agency,behavioral finance and system.This paper focuses on the impact of institutional factors on IPO pricing efficiency.Based on the overall reform process of the IPO pricing system,few literatures have explored the impact of the IPO pricing system on the IPO pricing efficiency,and few have discussed the company texture factors,and how the companies with different natures to be listed choose the IPO pricing method to promote the optimal IPO pricing efficiency.To sum up,this paper first combs the evolution of China’s IPO pricing system,divides China’s IPO pricing reform into three stages,including non market-based pricing under administrative control,semi market-oriented pricing with P/E ratio control,and market-based cumulative bidding pricing,compares IPO pricing efficiency under different IPO pricing systems,and exposes the policy effect of marketization of new share pricing and the superposition effect of new share pricing system and IPO first day price limit policy.The heterogeneity analysis is conducted based on the company texture and market prosperity respectively.Finally,according to the research results of this paper,based on the perspective of the government,the following regulatory measures and suggestions are put forward.After the full implementation of the registration system without administrative intervention in pricing,the regulatory functions need to be changed,the restraint mechanisms such as inquiry and placement should be further improved,the self restraint mechanism of the market should be established,investors should be guided to understand the differences between the registration system and before and after the reform,and the behavior of underwriters and institutional investors should be further standardized;For market participants,we should grasp and recognize the opportunities and challenges brought by the comprehensive registration system.