We give an empirical analysis how A share stock market's responding to the volume of circulating equity ownership.Our analysis is based on the data of 595 IPOs in Shanghai and Shenzhen Exchange during 1997-2001. We find a significant positive relationship between stock price and EPS,and the stock price has a significant negative relationship to the volume of circulating common stocks.We also find that the stock price has a significant positive relationship to the industry PE ratio implied growth opportunities when stock market is booming,but we find no significant positive relationship between stock price and industry PE ratio during recession.In the end,we discuss the significance of this empirical evidence to circulate state-owned equity.