China Listed Companies, Private Placement And Transfer Of Benefits,

The equity structure of listed companies is very closely-held in China. So large shareholders, also known as controlling shareholder or majority shareholders, may use the refinancing of listed companies for expropriate the interest of minority shareholders. Since the reform of the shareholder structure of listed companies of China, Non-public offering has gradually become one of the most important way to refinance in China securities market. Some studies suggest that there are also large shareholders' tunneling activities in the non-public offering process.Base on the analysis of 260 non-public offering cases happened from Jan 1, 2006 to August 31, 2008 and some analysis of actual cases, this paper did a pointed research of the large shareholders' tunneling activities in non-public offering process in China securities market, summarized some tunneling related features and concrete manifestations of the non-public offering in China. Moreover, in order to protect the interests of small and medium-sized investors, the paper given some constructive proposals and suggestions for prevent or lessen the large shareholders' tunneling activities.