Study On The Listed Company's PE Of MJNY

Since non-tradable share reform in 2006, PE gradually becomes an important way of implementing equity financing. Compared with other ways, PE not only has many advantages such as lower release conditions, flexible pricing, simple procedures, unlimited amount of funds raised, but also can achieve these purposes involve in injecting the good assets, drawing strategic investors, accomplishing the transformation of listed company and enhancing the big shareholder control. Therefore, it is very popular with the listed companies.In these purposes, it is a currently common way that big shareholders use PE to inject assets into listed companies. It is no doubt that this can solve the remaining issues of non-tradable shares, reducing the connection transaction and industry competition, improving the industrial chain of listed companies. But due to the ubiquitous phenomenon of "dominance", PE also becomes the chain of listed companies tunneling activity to big shareholders. From the existing literature, some scholars' study show that the problems of tunneling exist in the process of PE, and the behavior of injecting assets through PE has a notice effect. But why big shareholders adopt assets injection, big shareholders how to take advantage of this process to tunneling, and if this infringement benefits of medium-sized and small investors, the study of the academia is still inadequate.Therefore, in this article, we will explore whether there is the tunneling in the process of injecting assets through PE. At first, we will review the literature about the PE at domestic and abroad, and elaborate the several theories involved in this paper. Then, we analyze the reasons and status of asset injection in PE process, and the main ways of tunneling. Thirdly, we carry on the case analysis. This paper selects the case of PE of MJNY in 2015 as the object of study, and analyzes the problem of tunneling in the process of PE. Firstly, this paper has a brief introduction of MJNY and introduces the program and process of this PE. Secondly, analyzing the way of tunneling to big shareholders in this PE process including manipulating the issue price of PE, injecting poor quality asset, Inflating the value of assets injection, cash out Behavior. Thirdly, this chapter has carried on the review and summary about this case. Based on the conclusions of the previous research by using method combine theory and case analysis, this paper puts forward relevant policy and suggestions so that provide some decision-making for regulators and investors.