Investment Strategy Research On The Private Offering Refinancing Of Listed Companies

Private offering plays an important role as a means of refinancing for listed companies. Along with the joint-stock reform of large and medium-sized state-owned enterprises in2005, and the issue of 《Administrative Measures for the Issuance of Securities by Listed Companies》 in2006,and the debut of the GEM in2009, the scale of financing through private offering and allotment has exceeded the volume of fund raised by initial public offering (IPO) among instruments of direct financing.Private offering has aroused widespread concern and popularity upon its introduction and gradually turned into one of the major tools of refinancing not only for its relatively low requirements on the issuer, flexibility of pricing and easy implementing, but also because it helps listed companies optimize their financial structure, inject quality assets and draw strategic investors.Between February2006and August2011, more than640listed companies refinanced through private offering for up to683.425billion Yuan, accounting for38.58%of the overall amount of refinancing of listed companies in China; Take the period of year2010to August2011as an example,270listed companies conducted equity refinancing through private offering, and raised a total fund of336billion Yuan, which accounted for43.33%of the refinancing scale; Considering the number and proportion of listed companies involved, since the year of2010, private offering has mainstreamed the ways of refinancing.With the rapid development of domestic capital market and asset management industry, the demand of institutional and professional investors exhibits a trend of specialization and diversification, with growing popularity of theme-oriented investment. To meet the needs of multi-level investors, the thesis will first carry out qualitative analysis on the regulations of private offering, and then review and evaluate the theoretical and empirical research home and abroad on the directional effect of information disclosure of private offering on share price performance, and at last, build up the theoretical foundation of investment practice within the specific context in China.In addition to running data inspection and analysis on the price performance before and after the announcement of private offering plan, the thesis will also take systematized empirical and comparative testing of price performance under verified market backgrounds and incentives to draw general conclusions, which hopefully will serve as sources for institutional and professional investors’further research, to strategize the behavior of investment, and to provide valuable decision-making references for all types of investors.