Constant Investment In Shares Of Gold May Biotechnology Co., Ltd. Case Study

The development of capital market in China promotes the start and development of the business of investment bank in China and provides the stage for domestic capital operation. Through a case study of Beijing Evercreative Investment Co.,Ltd.(BEIC) 's invest as stockholder of Beijing Jingke Corporation (BJC), the thesis achieves the three goals:Firstly, to understand the purpose of capitalization for privately-owned investment corporation. Secondly, to research and explore the practical method of company evaluation in the capitalization. Thirdly, to study capitalization model and risk management. This thesis mainly analyses and studies the following four aspects.First of all, it estimates the value market of Beijing Jingke Corporation by direct comparison and solves the problem of purchasing price of Beijing Jingke Corporation of which Beijing Evercreative Investment Co.,Ltd.'s invested as stockholder.Next, it presents a comprehensive analysis of BJC at various planes. The author holds that BJC is an excellent company with a great potentials, whose further development may help it become a listed company.Thirdly, it analyzes the possible benefits that BEIC may obtain from investing in BJC and the means of getting money. In other words, once BJC gets listed, BEIC can sell stock right or gets repaid by requiring BJC to withdraw the capital by means of purchasing back.Lastly, it discussed the investment risk BEIC may face, and those of BJC. Corresponding measures are offered to confront the different risks. Through the case study, the thesis aims to reveal the following: 1. When the privately-owned enterprise selects the investment project, it must focuses on the development spaces of field, which the target market belongs to, especially the possibility of its being listed. 2. The purpose of capitalization, investing as the stockholder of target company for privately-owned enterprise is to attain stock right profits, rather than production operation profits of the target project. This marks its basically difference from the traditional investment method.3.The decision-making of investment in a target project should rely on the evaluation on the market value of the target project. The direct comparison is a practical and easily-operated method to evaluate the market value of privately-owned enterprise. 4. The difference between the capitalization model of privately-owned enterprise and traditional production model is obvious as the process of capitalization of BJC manifests.