The pricing of IPOs has become one focus in the current theory and the practicing field during practice of Book-building.

The pricing of IPOs has become one focus in the current theory and the practicing field.

The phenomenon that stocks in IPOs trade with high PE ratio and that their price rise at the beginning then slump in the secondary stock market has aroused great attention.

The paper introduces three stages of stock issue system and their influences on the stockholders.

The regulation of new stock issue is the first threshold for listed companies coming into the market, and it has the vital impact on the regularity and development of the stock market.

Choosing a scientific and appropriate pricing method of stock issuing is one of the problems in Medium-sized and small corporate markets.

According to our domestic situation, studying and transplanting sponsor s system is helpful to perfect stock issuing system, enhance the supervising of undertakers as sponsors, improve the quality of listed companies, protect investors interests.

Based on the theories of institution change of New Institution Economics, this thesis gives a systematic analysis of the evolution of stock issuing system in China.