Research On Private Placement Advantage Of Chinese Listed Company

April 29, 2005, China's securities market share reform launched , In order to facilitate the split share structure reform, Avoid creating new problems left over from history, The two exchanges center in Shanghai and Shenzhen suspension all kinds of financing except bonds. May 8, 2006, as the "Management of Listed Companies to Issue Securities," The official implementation of market financing functions (including refinancing) to resume. Private Placement of a listed company is the preferred means of financing in a period of time. Private Placement has showed its unique advantages.However, due to China's Private Placement market is relatively not matures the promulgation of regulations, legal and market development is not perfect. Whether from the scale, or efficiency terms, are far distant from abroad and compared. And the orientation of China's listed companies financing, did not fully understand its advantages, as a mere means of financing, it will not be able to make more efficient use of the Private Placement to carry out its activities.In this paper, the purpose of the study is directed to the advantages of Private Placement, Give a more systematic and detailed analysis of China's listed companies and other relevant stakeholders to make better use of financing methods, and provide additional directional reference.The main structure of this article is this: At first is the related research on Private Placement. Mainly about the definition of borders and its operating mechanism to conduct a comprehensive analysis . The second chapter is the theoretical advantages of Private Placement. And through other means of financing contrast, market access conditions, the issuance of additional directional reached the threshold issue of procedures and the cost advantages; while in the capital structure theory on the basis of analysis of listed companies use directional additional financing the appropriate conditions. Chapter III of the directional pattern divided into three additional major empirical analyses, Additional directional in practice can be very good indeed to meet the financing purposes of listed companies. In this part of the introduction, the three cases of the actual financing models, and additional company's financial statements for analysis, comparison of financial indicators that do exist in Private Placement. In chapter IV will be some inadequate against the possible existence and additional proposals for improvement.