The Comparison Of Private Placement Efficiency Between New Third Panel Market And Growth Enterprise Market

Due to the advantage of financing efficiency and information disclosure, private placement has become the main way of equity refinancing in our country. About the financing efficiency of the private placement and the large shareholders’ behavior of tunneling, a lot of scholars made research on the main board market. But the scale of private placement in GEM and NEEQ is growing. During 2013-2015, there are 184 listed companies which made the private placement in GEM, and the total amount of financing is 174.108 billion Yuan. While the 2258 companies in NEEQ made private placement, raising a total of 157.616 billion Yuan. In GEM and NEEQ, most companies are high-tech small and medium-sized enterprises. There exist certain differences in the tow markets about policy system of private placement. The companies in the GEM are more restricted by the regulators when they are determining the price of stocks. So in NEEQ, the price of some case of private placement significantly deviates from the market price.In this article, we selected the cases of private placement during 2013 to 2015 in GEM and NEEQ as sample, and compared the financing efficiency of the two markets. Study shows that from the point of direct issue costs, costs are lower in NEEQ, and the process of private placement last shorter. About the indirect financing costs, the discount rate in NEEQ is lower than in GEM. We made a further study about the reasons of the discount rate; found that the results have certain differences of different markets. The discount rate is related to investors in GEM, if the large shareholders participate in the private placement, the discount rate is higher than no big shareholders participate in. The discount rate increases with the degree of the participation. The result shows that there is potential motivation of profits transferring in GEM, when we strip out the "price discrimination" the conclusion is the same as before. In NEEQ, no evidence was found that the behavior of big shareholders has significant correlation with discount rate. The reasons of differences between different markets may be the different financing purpose, or different policy system in the two markets.In this paper, the research shows that in GEM there are potential profits transferring in the private placement of listed companies, this will influence the discounts and economic consequences. This paper provides the data on private placement outside the main board market, and expands the private financing efficiency related theory in the applications of the different securities market in our country. For regulators to establish and perfect the relevant policy of different market, our research has a certain reference value.