The Determinants of Underpricing in the ChiNext IPOs

2015 Fiscal Year Final Research Report

• Project/Area Number: 24530441
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Business administration
• Research Institution: Kyushu Sangyo University
• Principal Investigator: FUNAOKA Kenta 九州産業大学, 商学部, 准教授 (30615357)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: 新規株式公開 / 過少値付け / 中国の新興株式市場

Outline of Final Research Achievements

This research analyzes the determinants of underpricing of new listings in the ChiNext market set up by China's Shenzhen Stock Exchange in October 2009 as a market for venture firms.
Comparison with data from previous research on the main boards, confirms that the ChiNext market, has fewer days between the date on which the offer price is determined and the date on which trading starts, the PER does not have an upper limit of 30x, and the IPO share subscription multiple is lower. This shows that changes in these variables creates a situation in which the level of underpricing is lower in the ChiNext market than the level in the main boards identified in previous research.
In addition, this study investigates the relationship between the institutional bidding information and first-day IPO returns.The results indicate that compared to the other categories of institutional investors, many securities firms have private information related to IPOs.

Free Research Field

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