Interests Analysis of IPO for China´s Listed Small and Medium Companies

Author

Zhu Yanyang ; Zhang Lei

Author_Institution

Sch. of Manage., Xiangfan Univ., Xiangfan, China

fYear

2011

fDate

12-14 Aug. 2011

Firstpage

1

Lastpage

4

Abstract

This article analyzed IPO data of China´s 561 companies in SME board and 186 companies in GEM board, and claimed that the new IPO system implemented in June 2009 provided opportunity for high-priced, high price-earnings ratio IPO. Underwriters and the former major shareholders became the beneficiaries and the largest driving force because of their profit-driven behavior. In the current external environment, to implement market-oriented IPO pricing system, we must address two key questions: (1) the inefficiency or weak-form efficiency of secondary stock market, and (2) irrational quote tendency of institutional investors who involved in inquiry.

Keywords

economic indicators; pricing; profitability; securities trading; small-to-medium enterprises; China; SME board; growth enterprise market; initial public offering; institutional investor; interests analysis; market-oriented IPO pricing system; profit-driven behavior; secondary stock market; shareholder; small and medium companies; underwriter; Companies; Equations; Mathematical model; Pricing; Security; Share prices; Software;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science (MASS), 2011 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-6579-8

Type

conf

DOI

10.1109/ICMSS.2011.5998522

Filename

5998522