and according to raise amount of shares issued and to determine exactly to what they will release

Editor's Note: in order to promote the healthy and steady development of China capital market, the Commission recently launched intensive six initiatives. This special launch series, each of these initiatives conducted in-depth analysis and interpretation. 22nd, 23rd and 24th respectively launched the bond market calling for chess policies are still needed at high speed, and the prevention and control of insider trading of capital market from the source "rodent" actions escalatedAnd the chaos-ridden under the State Council over more than 300 trading venues will straighten up, today published the change higher earnings to issue new shares of correlation analysis reports. High price-earnings ratio of new shares issued, why not? Has been discussed in the industry, regulators have been promoting. Recently, the regulators are clear means of gradually changing high earnings shares。 So, how can this situation to crack? New stock issue "three highs" is complete with the introduction of initiatives to be changed? Everything is looking forward to. Since the new deal for IPO launch in June 2009 in Shanghai and Shenzhen stock market, China's securities market has accelerated the pace of market-oriented, but, judging from the IPO market issuance in the past two years, new stock issue exposed the seriousIssue. IPO has become high price issue, high earnings release, superb raised the issue of "three high" release. Particularly prominent are second board companies. According to statistics, the current listing on the gem company 275, the average price of about $ 35, nearly 68 times times issued on average earnings, average more raised than to 200%. A few days ago, the Commission launched six major regulatory reform measures, Which made it clear that, by means of gradually changing situation of high earnings shares. SFC official said, "as a regulator, we are not giving reasonable standards for price/earnings ratio. But the next step the Commission will continue efforts to increase the intensity of reforming and perfecting the issuing regulatory ". "Three high" being blamed for a long time, new issues "three high" by general investmentCriticized by users. However, recently, the IPO price generally lower, individual issue price-earnings ratio high became the focus of new shares. A few days ago, the largest of the traditional publishing industry IPO--Phoenix Media publishes online success rate and placement results under the net, issue price/earnings ratio as high as 63.4 times times, facing the stock higher issue price/earnings ratio, agency minimum bid is only 5.2Yuan per unit, this 1 time difference with the highest bid $ 10.88/unit more than doubled. Prior to this, Phoenix Media findings of a preliminary inquiry, Phoenix media this release issue price range of $ ~8.80 is $ 8/share/unit (including the lower and upper). This range corresponds to earnings before the 2010 issue of level of 46.11 times ~50.72 times,Earnings after 57.63 times ~63.40 times. Investor Roadshow platform directly questioning its price/earnings ratio is high. In response, the Phoenix Media Chairman Chen Haiyan says, if calculated according to the sustained viability of standards to the issue corresponds to 2010 year earnings level: 25.23 times ~27.76 times before the release, after the release of 31.54 times ~34.7 times, if further consideration on the basis of company earnings growth in 2011, the company of the a shares issue compared to comparable company earnings and major a-share, it is more reasonable. If Phoenix media in the whole publishing's leading position in the field, Phoenix media give investors the determination of the offering price is set aside a certain amount of space. However, thisQian, shenyin wanguo analysis report, 11, 12, 13 is fully diluted EPS of $ 0.28 and $ 0.33, $ 0.36, reasonable valuations $ 6.44 per cent. Combining similar valuations of listed companies, as well as the current market environment, the 11-PE-26 times times, reasonable valuations $ 6.44--7.28Yuan. China Securities analyst Lin Hu Yu said that taking into account the price of more than 60 times the Phoenix Media PE, it is recommended that the "Beware of the risk of break, do not purchase". In addition diablo 3 gold, a recent listing of new shares is due to higher pricing very concerned about. On November 22, Dominion optical listed on the Shenzhen small and issuing valuation 67.65 times times, into a caps since NovemberNew stocks with the highest earnings. Listing on the six months in small and new shares, second only to the April Understanding power 76 times times the issue price/earnings ratio, is more prominent. However, Dominion optical to beat 20% on the first day of gains on the day at $ 28.8 opened smoothly after shock, closing $ 28.76, exchange rate up to 88.63%. 2011 three quarterly reports shows that publicDivision specializing in 40% increase in revenue, net profit growth of up to 181%, diluted earnings per share of $ 0.544, researchers believe that dynamic watch company valuations are not too high. According to another study on Shenzhen Stock Exchange financial innovations laboratory data since October 30, 2009, on a small total of 528 new listings and gemMarket investors to buy shares on the first day of 5th loss of 61.23%, particularly since the beginning of this year, in Shenzhen a shares break phenomenon not uncommon over 70% shares have fallen below issue price. "Three high" causes diverse new "three-high" release was plagued in recent years priority issues for the development of China's stock markets. It is not only serious overdrafts had shares in the secondary market value of investments,Increased investment risk. Many issuers raise funds ultimately can only be tied up in huge Super Bank, resulting in a huge waste of resources. The reason, analysts said, leading to high price issue, there are many reasons to raise more funds, existing distribution system is not perfect, the market mechanism is not perfect, and investment culture and atmosphere is not reason, do not attach importance to risk revealing and the blindHype has a larger relationship. And, for a long time, the a-share markets, "every new rose", therefore, we are "every new play", supply and demand leads to higher issue price of new shares, high earnings and a high proportion of Super-raising phenomena occur. In addition, the Investment Bank's IPO valuation report is often higher than the final offer price, even in the worst times, higher than the final pricing more than 1 time times the valuation reportDivisions are a minority. This further led to the inquiry does not trust relationship between agencies and investment banks, inquiry agencies offer also tended to be irrational State, affecting the healthy development of capital markets. And its ultimate result, investment banks lost their authority and influence of research on valuation, when the market is hype atmosphere lost control. However, the British Institute of securitiesLong Li Daxiao also said that this is a product of China towards market-oriented pricing of securities market, cannot be avoided. Li Daxiao believes that compared to mature markets, the a-share market is a product of a non-market starting immediately fully market-oriented issue may have unforeseen consequences. Progressive realization of market-oriented, progressive reform is the best choice. It is understood that in the mature markets, Secondary market pricing is a two-way trade system, and even naked short selling, stock market policy did not favour either, any company dare to unscrupulously pricing, because a great deal of reverse transactions and arbitrage disks poured out of at any time. Market-oriented pricing, market-oriented release, Enterprise IPO pricing will be free to, as long as people buy. So market upsurge, because of too high a price to attract a large number ofNew share issues, market downturn as shares was too low when few companies are willing to go public. However, subsequent financing very liberal. IPO has been ahead of the market in our country on the road, while on the way there yet to be room for improvement and perfection, General also are able to objectively reflect the prevailing relationship between supply and demand and of the corresponding stock market valuations. With the IPOInstitutional reforms, the gem IPO pricing starting rational return. Data show that since the beginning of this year, the gem IPO price/earnings ratio "-by-quarter" gem release earnings is clearly downward trend. The three quarter 2011 gem release earnings declining 73.88, 44.18, times. In June this year listed on the United StatesMorning tech 18.12 times times the issue price-earnings ratio is the lowest. But insiders said the IPO earnings fall, mostly because of gloomy market and fund this year under the environment of surface tension, if market conditions improve, does not rule out new share price-earnings ratio to rise again, securities and Futures Commission for the new shares higher earnings results also continue to watch the new deal. Address the high price/earnings ratiosNeed to start with the high price-earnings ratio for new shares issued, regulators continue to take measures. SFC responsible person stressed that reform issue regulatory systems, requires sustained effort. In recent years, the Securities and Futures Commission regulating the behavior of inquiries and pricing programs, on the one hand, on the other hand strengthen market discipline mechanisms. Issuing auditing, in addition to constantly raise the level of auditing, strengthening agency responsibilitiesEstablished intermediary asked the nuclear program, enhanced on-site examination; release link discovery issues, intensify efforts to investigate and; supervision on release process, increasing risk, efforts to increase transparency diablo 3 power leveling, improve predictability and so on. Industry sources said, to further changes of high earnings shares should be multifaceted approach. If in the process of inquiry, it is necessary to strengthen inquiry objects quoteMarket supervision, to establish a reward the good and fine [punish] the bad control mechanism, eliminating inquiry objects offer poor quality; we should further improve the pricing mechanism, improving small and medium-sized investors to say in the valuations process. Many industry experts and scholars are also given his own proposal. Li Daxiao, available from the following address. First of all, you can control the total, dispersionListed as a centralized listing, that is, from eating less meals to set meal, so that you can implement control the listing price of new shares. At the same time the number of more than a, investors naturally there is not much interested in going to the hype. Followed by the first release, delayed for several months or longer after listing, with increased playing time for new risks, control its hype, and still have plenty of time to understand theCompanies ' investment value. Wuhan University of science and technology, Director of the Institute of finance and securities Dong Dengxin recommendations, IPO Netherlands auction pricing, that is, direct quotes by the investors in listed companies, and according to raise amount of shares issued and to determine exactly to what they will release, quoting higher than the final pricing of access to shares, corresponding to the high bidders get shares of the market principle。 Avoid stock boom collapsed in the first trades. Deputy Director, Institute of Southwest securities chief economist Wang Jianhui said that on the need for restraining the IPO "three high" in the system. Proposals of intermediaries such as inquiry agencies, securities underwriting agencies hard constraints, so that they can't quote, high price. Investment bankers believe that solving the IPO higher earningsIssues, investment bank has an unshirkable responsibility. Recommendations on the IPO risk, banks should shoulder more responsibility to guide institutional investors offer to give a more rational. Currently depressed market environment for banks provides a very good reflection on the opportunity to strengthen industry self-regulation, perfect IPO issue is imperative to link risk.