Abstract: What impact will IPO events have on the industry? this article finds that the IPO incident can cause investors to pay attention to the entire industry and form pressure on the purchase of shares of listed companies in the industry. In A-share market, this irrational purchase pressure was even higher than the selling pressure from the IPO event′s adverse impact on listed companies in the same industry. The pressure exerted on the stock market caused A-share to show an abnormal phenomenon in which the price of the competitors of IPO companies rose. Further research finds that in the unpopular industry, the industry attention caused by the IPO event has improved the asymmetry of information between investors and competitors and forced them to improve their operating status, moreover, new listed companies have emerged in the industry, and industry competition will become even greater. Intense, competitors also have the motivation to improve their operating status. Therefore, the IPO event also has a positive impact on the long-term performance of the competitors. The research in this article shows that IPO can be used to increase the competitiveness of the industry supported by national strategy, help adjust the industrial structure, and promote the capital market to serve the real economy to meet the requirements of high-quality economic development..

Key words: IPO, incumbent firms, short-term excess return;long-term business performance