Author(s)

Lei Li

School of Economics, Jinan University, Guangzhou, China.

The IPO in China has been subject to the audit system, which imposes strict control over the pace of issuance of new stocks. The issuance of new stocks is relatively small, and there are also various restrictions on the issuance prices. High IPO underpricing rate and high turnover rate have always been unique to China’s new issue market. For this reason, this article begins with the causes of the high underpricing rate, and combines investor sentiment to study the effect of the new share issuance system on the IPO underpricing rate.

IPO Underpricing, Government Regulation, Investor Sentiment

Li, L. (2018) The Influence of Government Regulation on IPO Underpricing. Technology and Investment, 9, 109-116. doi: 10.4236/ti.2018.92008.