Study On Set The Private Placement’s Price Of Chinese Listed Companies

With the development of China’s economy, the urgent needs of the listed companies on the funds and equity refinancing to promote the evolution of the mode of China’s capital market refinancing. May2006, China officially issued the private placement system. Up to2012nearly723listed companies implement the private placement financing in the A-share stock market. More and more investors choose the private placement financing, also make private placement become an important kind of refinancing ways in the listed companies.This article reviews the theoretical basis and integrates the theory and practice. It takes the private placement of Catic fine machine as example and researches orientation in the discount reasons and economic consequences of private placement. This article also uses the literature overview method and case study method. Ultimately this article gets the conclusions. Firstly, the article illustrates the situation of case’s private placement. After that the article analyzes the reasons for discount of private placement and tests the economic consequences of private placement from two aspects. Market conditions affects the private placement discount and the private placement brings positive market reaction and financial effect.The results of this article will help China’s regulatory authorities to improve the system of private placement, the efficiency of resource allocation of China’s capital market and the interests of investors.