Empirical Research on IPO Underpricing of Listed Companies in China's SME Board after GEM

The creation of the Shenzhen small and medium-size enterprise (SME) board makes small and medium-size firms raise funds in the stock market, to solve the problems of their own funding needs. High initial public offerings (IPO) underpricing appears on the listed companies' first listing day in SME board, and mean of IPO Underpricing remains more than 100% for years. China's capital market is gradually opening up to the world, and the split share structure reform is periodically completed. Growth enterprise market (GEM) has also completed its listing. In this context, the study on IPO underpricing phenomena of listed companies in China's SME board has some theoretical and practical significance. Through empirical analysis of the first day's listing data of 698 listed companies divided into three stages in China's SME board, multiple regression analysis models is established to identify important factors that affect China's SME board IPO underpricing and explain the phenomenon of High IPO underpricing. Meanwhile on the basis of the study, some relevant suggestions are put forward, which provide reference for investors, listed companies and companies to be listed, the government regulatory departments.