Notice of Retraction: The research of IPO phenomenon in GEM of China

Abstract

Based on the reference literature, by selecting some data from the Growth Enterprises Market (GEM) which has been run for more than one year, this paper studies the IPO phenomenon of GEM. According to the conclusions of this paper, there is not severe IPO underpricing phenomenon in Chinese GEM, but there is a serious long-term underperformance of the IPO. The main reason of the situation is the too high issue price and the unreasonalbe pricing mechanism. At the same time, compared to the crazy emotion at the introduction of GEM, after more than one year, the GEM and the investors have been gradually rational.