The Refinancing Efficiency Research Of Listed Companies’ Private Placement In Public Equity

The private placement in public equity is of great importance for solving the financial plight of enterprises, optimizing enterprises’ asset structure, promoting enterprises’ development, and flourishing China’s capital market. It has become the primary refinancing choice of listed companies.However, the private placement in public equity is restricted by restric policies, regulations, legislations and even the regulatory authorities’ unwritten rules in practical. It needs to go through the resolution of the board and shareholders, the examination of the relevant department and the CSRC, and the approval of the CSRC in further. The complexity of the process results to the low efficiency of the private placement. It severely restricts the long-term development of enterprises and has extremely bad impacts to the steady development of China’s capital market.Based on these reasons, the refinancing efficiency issues of listed companies’ private placement are worthy of attention. To respect the market, streamline administration and institute decentralization to improve the efficiency of the private placement is worth exploring. This paper describes the current refinancing situation and analyzes the poor efficiency of China’s listed companies’ private placement. It thorough analyzes the problems of private placement regime under the approval system, and makes recommendations to improve the efficiency of the private placement in combination with the forthcoming IPO registration system.