The Studay of Issuance System and Issuance Ways with IPO Pricing Efficiency in China;

Zhao Maolin, this article has expanded the IPO efficiency, divides it into two levels: IPO allocation efficiency and IPO pricing efficiency, and thus structures the new IPO efficiency analysis framework.

It is no exception that IPO underpricing is a widespread phenomenon in the stock market of China.

This paper starts with a positive analysis of the underwriting reputation,one of the key factors of influence upon IPO underpricing, drawing on large samples from 1230 IPOs issued between 1990 and 2005 on Chinese stock market,and making use of a new methodology that caters to the Chinese context.

With the combination of theoretic and empirical approaches,this dissertation has analyzed the effect on IPO efficiency which is brought about from the equity division reform.

Besides the basic financial information disclosed by corporations, a few signals such as capital structure, dividends, operation risks and market risks might effect IPO pricing.

In China stock market,the IPO pricing,underpricing and the stock price deviation from it s value make the newly-issued stock s long-run performance underperform the market and also make the market inefficient.

The research objectives are to objectively describe IPO pricing of banks since 1999, research the relationship among factors and IPO pricing, and give suggestions about improving IPO pricing through the compositive method of theory analysis and exper.

Above of all, this paper reviews the research results about IPO efficiency and finds that most of all directly use the western research paradigm of IPO efficiency, but neglect the other important part of IPO efficiency: IPO allocation efficiency.