Notice of RetractionAn analysis of the efficiency of the stock issuance market in China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

The underpricing of IPOs in China stock market has persisted over time. By serial correlation test and runs test of yields, we have found that there´s certain serial correlation in the primary market, which does not accord with the characteristics of weak-form efficiency, and even has not yet reached that level. The inefficient phenomenon can be best explained from the angle of special supply and demand of China stock market. However, the incomplete information of China stock market and nonrational behavior of market subjects further reduce the market efficiency and increase the supply-demand imbalance. Thus, the regulators should make the approval process of IPOs to be more market-oriented, the intermediary institutions need to further enhance its reputation, and the investors should pay more attention to the diversification of investment, as well as the rational investment philosophy.