Researches Of Increasing Of Shareholding's Excess Earning Based On Chinese Security Market

Substantial shareholders refer to the natural persons, general legal persons or organizations with 10% or more stocks in corresponding listed companies. Substantial shareholder overweight refers to the stock behavior that natural persons, general legal persons or organizations increase the stocks issued by corresponding listed companies. In history, substantial shareholders could obtain remarkable excess returns by taking part in private placement on the primary market. From January 2006 to the end of 2014, take Shanghai-Shenzhen 300 as the base, the excess return of substantial shareholders'overweight stock reached 79% on average. The probability of getting positive earnings was 86.3%. During the period, the excess return of substantial shareholders overweight reached 168.7% to the maximum on average.For the private placement in China, it is not until 2006 that China Securities Regulatory Commission issued corresponding documents to standardize and regulate overweight market. In addition, substantial shareholder overweight behavior in private placement is quite common on domestic stock market. However, by 2015, there were few studies on excess returns of substantial shareholders overweight on the private placement market. From this, it can be seen that there is a lack of researches on private placement, especially profound and systematic researches with elements of private placement as the core breakthrough points. Therefore, from the perspectives of private placement factors, the paper finds the relation between the factors and excess returns on the primary market, which can enriches academic researches on private placement, and has positive significance for stock investment on the primary market in practices.The paper adopts literature induction method and qualitative analysis method to make multi-dimensional investigation into and analysis of substantial shareholder overweight. Besides summarizing the previous scholars'research achievements, the paper starts from private placement market data from 2006 to 2015 on the domestic stock market, deepens into and effectively analyzes excess returns of stocks with substantial shareholder overweight from 2006 to 2015 on private placement market, and draws corresponding conclusions. Finally, the paper proposes relevant suggestions on investment on the basis of the above conclusion.