Abstract

The efficiency of the securities market depends on the degree of the completeness of information. The efficiency is affected by the supply as well as the demand of the information. But there are few studies on the risk information demand of investors, and much fewer studies on the equilibrium of the IPO risk information supply and demand. Because of the frequent occurrences of information fraud behavior in the IPO market of China, Chinese investors pay a lot of attention to the risk information disclosure. This paper discussed the development of the Chinese IPO system and the current situation of the risk information disclosure. And then according to the problems, this paper gave a theoretical analysis of the equilibrium and disequilibrium conditions of the risk information supply and demand in the IPO market by examining the dynamic process between information supply and demand. Through the analysis, this paper found that there exist many information supply and demand deficiencies in the Chinese IPO market. The “make-up” phenomenon in IPO information disclosure has been very serious. The investors’ demand for valuable risk information disclosure is largely ignored. More attention needs urgently to be paid to the information demands of Chinese IPO investors.

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