| After CSRC enacted The Regulation Methods of Securities Issuance by Listed Companies in May, 2006, private placement became the preferred mean of the company refinancing in recent years. However, China's capital market is not mature enough, especially in the act of private placement. This is bound to lead to a lot of questions on the issuance of private placement, and the most important problem of all the questions is the pricing, which most investors are concerned about.Analyzing the data from 2006 to September, 2009, we can find that the average rate of discount is about 24%, which is dramatically higher than the rate of discount of pubic placement. So, what are the factors leading to the rate of discount of private placement so high? This is also the main issue which the author is trying to study in the paper.This paper includes five parts: first of all, reviews the precedent research paper on private placement; in the second place, describes the situation of the private placement in the capital market of China, including history and the issuance motivation of private placement, etc.; the third, analyzes current problems of pricing of private placement of Listed companies in A-shares market; the fourth, analyzes the factors which affect the rate of discount of placement and makes the empirical assumption, then makes the multi-linear regression model to verify the truth of the assumption, according to the figures from 18 September, 2007 to 31 March, 2009; finally, makes the conclusions and gives some advices according to my research.The main contributions of the paper are: above all, sampling the figures after CSRC enacted The Implementation Details of Private Placement by Listed Companies, for the sake of the affection of the policy to the multi-linear regression; moreover, revealing the reasons of high rate of discount in the capital market of our country through analysis of the factors affecting rate of discount; finally, providing advice to helping the impact of pricing. |
PDF Full Text Request