Study On The Performance Of Private Placement In China’s Listed Companies

Since the reformation of stock market, the private placement has been keened by investors in the securities market. A large number of people begin to pay close attentions to the performance of private placement which has got a vigorous development in recent years. If we can issue the performance of private placement clearly, it will be so helpful to listed companies to make and select more favorable financing decisions that to maintain and enhance the value of the company.The article selects the private placement of Inner Mongolia Yili Industrial Group Company Limited as a study case, and then uses some methods to research the case. Firstly, the article introduces some experts and scholars in the performance’s research of private placement. Secondly, this paper introduces the development course of China’s private placement and present situation as well as the distribution process. Then, the author introduces some basic situation of Yili and its private placement. The following is the analysis part which is the core of this article. In this part, the author thinks the choice of Yili is reasonable by contrasting to other financing ways. In addition, the performance of private placement is so significant after author’s detailed analysis. And then this paper makes further research of the causes of significant performance. Finally, the author makes some suggestions to the listed companies which have refinancing plans.