The Research On Investment Strategy For Listed Companies’ Private Placement

From the view of evolution of equity refinancing of listedcompanies,thisthesis explored the logic and driving force that pushedprivate placement to become the mainstream of equity refinancing.Subsequently, the thesis analyzed the private placement both inqualitative classification and quantitative statisticsmethods.Then, basedon the statistical analysis of whole sample before and after privateplacement and combined with the company’s market performance, thethesis used case analysis and empirical analysis measures to explain thelogic behind. Secondly, the thesis discussed the two factors of gains andrisks. Sources of gains include the initial discountsand the stock returnsduring lock-up period. Risksare mainly due to general market risks andproject ones. With the constant increasing trend of seller’s market, it alsoresulted in the risks of worsening project qualityand lower initial dicounts.Again, the thesis discussed short term announcement effect, excess returneffect and participation strategy.With event study method,the thesisempirically proved more significant announcement effect and promptedproper time windows for investment. According to the qualitative and quantitative rules,the thesis selected the ranges of private placementcompanies and determined the targeted companies forinvestment.Portfolio investment and various quantitative hedge methodswere flexibly used to verify the investment strategy and results duringsimulation tests. Finally, the thesis draw the main conclusions and putforward the policy advice and investment suggestions targetingtheexisting problems and development of private placenment and pointedout the deficiency and research direction in the future.