A Study On The Transfer Of The A Stock Market In China Through The Private Placement

The way of private equity placements has been favored by listed companies since it was launched in 2006.It has exceeded the other financing methods such as rights issue and public issuance,and has become the most important way of financing in A share market in China.With the preference of listed company managers for private equity placements and investors' enthusiasm for new offerings,private equity placements has become one of the hot topics of scholars.Scholars at home and abroad mainly based on the asymmetric information theory,principal-agent theory,market timing theory and hypothesis to explains the private equity placements of listed companies shares in the process of long-term and short-term market situation,but a few reseach on private equity placements of wealth transfer.Although some domestic scholars has reserch the wealth transfer via the private equity placement,but most are stay at the qualitative level,or using the excess rate of return to measure the alternative indicators of wealth transfer and a few scholars directly and quantitatively research on the wealth transfer of private equity placements.Quantitative research on wealth transfer is of great importance for listed companies to achieve shareholder wealth growth,investors to avoid wealth loss,and regulators to make targeted regulatory measures.Based on the research sample of 650 listed companies in Shanghai and Shenzhen two cities in 2007-2011,this paper quantifies the wealth transfer after 2007-2011 years' private equity placements.On this basis,this paper researches on the influence factors of wealth transfer,at the same time,discusses the wealth transfer of private equity placements of listed companies between the current stock price relationship,this study found that:(1)the wealth transfer from the new investors will be transferred from the new investors to the original shareholders.(2)the wealth transfer will be affected by the transfer of listed companies shares scale,company size,city net rate,the rate of return on total assets,subscription and equity through a private placement of wealth.(3)the transfer of wealth generated by private placement will have a positive impact on the current share price.When the wealth transfer is more,the current share price will be higher,otherwise,the lower it will be.This paper studies the relevant regulations and policies of China's regulatory authorities for private placement,and provides empirical evidence for listed companies to make financial decisions,thereby promoting healthy and stable development of China's stock market.