The study analyzed the initial returns of Chinese IPO stocks after changes in the government's IPO pricing system. By examining factors like issuance rate and pricing, the researchers found that IPO stock initial returns were influenced by policy changes. Factors like issuance costs, major shareholders' ownership, and company age significantly impacted the first-day excess profits. This research sheds light on the performance of Chinese IPO stocks and can provide valuable insights for managing IPO portfolios in China.