The Impact Of The Implementation Of Registration System On IPO Pricing Efficiency Of GEM

Under the background of the comprehensive reform and development of the national securities market,the audit system of listed stocks of Chinese enterprises is undergoing an important change.The reform of the stock issuance registration system has changed from a batch trial to a full implementation,which indicates that the relevant institutional arrangements have been basically finalized,and the full coverage of the national securities exchange places and various public offerings has been realized.The registration system reform of GEM marks that the registration system has moved from incremental reform to stock reform.The registration system reform has experienced many events,such as science and technology innovation board pilot,GEM share reform,the merger of small and medium-sized board and Shenzhen main board,and the opening of the North Stock Exchange.The full implementation of this reform will open up a broader space for the high-quality development of the capital market and open up a new situation of comprehensively deepening the capital market reform.Due to the impact of the epidemic,economic growth slowed down,and domestic investors lacked sufficient understanding and cognition of the registration system,which led to misunderstanding of policies and operational difficulties in the market when the registration system was just implemented.Therefore,this paper takes the Growth Enterprise Market as the research object,and analyzes the IPO pricing efficiency of registered companies on the Growth Enterprise Market,aiming at deeply discussing the impact of the implementation of the registration system on the IPO pricing efficiency of listed companies on the Growth Enterprise Market.This paper uses the data of listed companies related to registered GEM and stochastic frontier model to get the IPO pricing efficiency of listed companies.The double difference model is introduced to exclude the influence of other factors,and it is found that the implementation of the registration system reduces the pricing efficiency of initial public offering.However,science and technology innovation board’s initial market enthusiasm was too high,the government implemented some compulsory measures,and the COVID-19 epidemic also brought negative effects.These factors may hinder the development of the registration system in China stock market.Through comparative analysis,we find that the negative effect of registration system on IPO pricing efficiency is gradually weakening.Long-term implementation of registration system can correctly play its positive role,improve IPO pricing efficiency,simplify issuance procedures,reduce financing costs and improve market efficiency.Therefore,we should continue to promote and improve the registration system in China stock market.