Abstract
The existing IPO process has three steps: (1) to set the price at a designated PE ratio of 15 (or below) that is obviously lower than the average PE ratio in the secondary market; (2) to freeze the funds of investors according to how much IPO stocks they would like to bid for; and (3) to require the investors to transfer their funds to appointed accounts. This issuance method has adversely affected the development of the stock market and the economic growth. Therefore it must be reformed.
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© 2015 Sun Guofeng
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Guofeng, S. (2015). Stock Market. In: Financial Reforms in Modern China. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137504449_5
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DOI: https://doi.org/10.1057/9781137504449_5
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-56094-3
Online ISBN: 978-1-137-50444-9
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)