Impact of the Registration-Based System Reform on China's IPO Market

Implementing the registration-based system reform in China's IPO market from the pilot phase in 2019 to its full-scale execution in 2023 has yielded a surge of pertinent scholarly inquiries and attention from the capital market. This paper, beginning with the IPO market, analyzes relevant literature to explore the impacts of the registration-based system reform on the IPO market. By methodical arrangement and examination, it has been noted that the ongoing studies in China concerning the impact of the registration-based system on the Initial Public Offering sector are predominantly focused on four principal aspects: pricing effectiveness, the caliber of companies going public, costs associated with issuing shares, and the supervision by regulatory bodies. Ultimately, this paper synthesizes the findings from existing literature and proposes policy recommendations such as enhancing information disclosure, strengthening the Chinese capital market, and improving the mechanisms for short-selling of stocks. It also points out the deficiencies in current research.