Abstract: It is an indisputable fact that the resource allocation of China's stock market is inefficient. There are two reasons for the inefficient allocation of resources in China's stock market: the first is caused by the poor market effectiveness caused by the incomplete development of emerging markets themselves; The second is caused by institutional defects in the context of mandatory changes in the enterprise system and in the process of establishing a catch-up and overtaking securities market, of which the defects of the stock issuance pricing system are an important factor. Through the effect of this institutional defect on the efficiency of market operation, the market defect of the original inefficient operation is magnified again, and the efficiency of the market's allocation of resources is further reduced.

Keyword: Stock issuance pricing system; Market operating efficiency; Resource allocation efficiency