Research On The Impact Of GEM Registration Reform On IPO Pricing Efficiency

The reform of registration system is an important reform of our capital market,which can improve the efficiency and quality of new share issue by simplifying the process of new share issue and strengthening information disclosure and supervision.The regulatory authorities have also been trying to improve the basic system of the capital market,and hope that through the reform of the registration system to significantly improve the pricing level of new shares,improve financing efficiency,and promote our capital market more open and market-oriented.Whether the reform of the registration system can achieve its expected results is of great significance for our country to establish the registration system in line with its own characteristics.This paper mainly studies the impact of ChiNext registration-based system reform on its new stock pricing efficiency.In the theoretical analysis,based on the content of registration-based system reform,it analyzes theoretically the impact of reform on new stock pricing efficiency,and finds that registration-based system reform will affect IPO pricing efficiency,and its impact on primary and secondary markets is inconsistent.In the empirical analysis,this paper takes new stock first-day return rate as a proxy variable for IPO pricing efficiency,and selects comparable company method to estimate stock intrinsic value.It divides IPO pricing efficiency into two parts: primary market and secondary market.Then it uses 743 new stock samples from A-share market from January 1st 2018 to August 24 th 2022,and applies double difference model to empirically analyze the impact of ChiNext registration-based system on its new stock pricing efficiency,and conducts robustness test.The research results show that: First,ChiNext registration-based system reform significantly affects its IPO pricing efficiency.Although it reduces IPO pricing efficiency in the short term from the perspective of reform,IPO pricing efficiency begins to gradually increase with the continuation of reform.Second,ChiNext registration-based system reform has a significant positive effect on primary market pricing efficiency.Third,ChiNext registration-based system reform significantly reduces secondary market pricing efficiency.Based on the research conclusions,this paper points out that China’s capital market should continue to deepen registration-based system reform,improve information disclosure system,optimize China’s investor structure,strengthen investor education,improve the professional level of all parties involved,make registration-based system reform adapt to China’s actual situation,and give play to its institutional advantages.