The Impacts of Registration Regime Implementation on IPO Initial Return, Fair Value, Overreaction and Pricing Efficiency

We study the impacts of regime changes and related rule implementations on IPOs’ initial return for China’s entrepreneurial boards. We find that the most efficient regulation regime in China’s IPO pricing has four characteristics: 1) registration system, 2) no hard return caps and no trading curbs that restrict the initial return; 3) more specific listing rules for issuers, and 4) more stringent participation requirements for investors. In this context, the registration regime governing the STAR IPOs offers the most efficient pricing