On the Financial Regulation,Investment Risks and IPO Underpricing
研究中国IPO平均267%的抑价现象，发现金融监管（定价上限和配额控制）以及中国特有的投资风险（时间差、锁定期、掏空风险）是主要原因。
The Chinese average IPO underpricing is 267%,which is brought about by financial regulations and investment risks.The government regulator sets a cap on pricing IPO shares and stipulates the IPO quotas to control the supply of IPO shares.Regulatory underpricing is a unique feature of China's primary market Furthermore, besides the asymmetric information about the quality of IPO firms,there are some Chinese-specific investment risks.There is a long time gap between going public and going for flotation.Lockup risks come with the illiquidity of IPO subscribers' investment.The investors in China's primary market further discount the IPO shares with tunneling risks and grabbing risks.These Chinese financial institutions rationalize the severe Chinese IPO underpricing.