Font Size: a A A

Price And Return Of Private Placement On NEEQ

Posted on:2018-12-20Degree:MasterType:Thesis
Country:ChinaCandidate:H J LiFull Text:PDF
GTID:2359330515486534Subject:Financial professionals
Abstract/Summary:PDF Full Text Request
The National Equities Exchange and Quotations market(NEEQ)has been the basis of Chinese capital market,where the enterprises at growth stage could raise funds for further development and the investors could share the rapid growth of enterprise value.Thus,the valuation of private placement in NEEQ is significant to both the enterprises and the investors.This essay addresses the influence of enterprise’s financial situation,trading features,investor’s identity and industry/cluster features on the valuation and return of private placement.It turns out that the net profit and BPS are two important factors in deciding the stock price.The enterprises with better profitability,higher operating efficiency and stabler financial status would overall receive a higher price in private placement.Investors would use different valuation method such as P/E valuation,P/B valuation and P/S valuation to enterprises in different industries so as to match the development stage of the industry and the enterprise.Moreover,affiliated investors,especially controlled shareholders,generally acquire a lower stock in private placement compared to non-affiliated investors,which leads to higher short-term return.This study of price and short-term return of private placement in NEEQ would help the investors improve their valuation method and thus long-turn profit.
Keywords/Search Tags:private placement in NEEQ, price analysis, return analysis
PDF Full Text Request
Related items