This paper examines post-IPO fundamentals and the dynamic changes of "A" shares firms in China.We find that the profitability of "A" shares firms declined significantly after going public.Furthermore,we explore the utilization of IPO proceeds of listed firms and analyze their impact on firms profitability.Empirical finding indicates that deterioration of post-IPO profitability may be attributed to underinvestment and altering investment directions of IPO proceeds.