An Analysis Of Tunneling In The Process Of Private Placement Of Shengtun Mining Industry

Private placement,also known as non-public offering,has long existed in China's stock market as one of the refinancing methods.Driven by the split share structure reform and the implementation of the securities law in 2006,China's listed companies have rapidly developed private placement into the main form of refinancing.Compared with public offering,private offering has the advantages of loose conditions,fewer offering targets,Large financing scale and so on,which is more acceptable to the major shareholders of listed companies.Under the background of the current era of full circulation,listed companies carry out directional issuance on a high frequency and large scale in order to enhance the value of enterprises or to consolidate their control position by large shareholders.However,our country's capital market is still in its infancy.Problems such as inadequate market supervision and imperfect laws and regulations provide arbitrage opportunities.Targeted private placement targets often use regulatory loopholes to transfer benefits.This behavior greatly affects the overall valuation of enterprises,thus damaging the interests of small and medium shareholders and requiring extensive attention.As for the research on private placement,foreign scholars have carried out it on a large scale as early as the eighties of the last century.The research focuses on the relationship between the discount of issuance and the target of subscription,the influence of private placement on the long-term and short-term performance of enterprises,and whether there is a phenomenon of interest transmission in private placement.In our country,due to the relatively late formation of the capital market,the research on private placement by scholars started in the late 1990 s.Moreover,it is based on the research results of foreign scholars and based on the characteristics of the national conditions.At present,it still needs to be further and more detailed explored.This article adopts the method of combining theory with practice.Firstly,it briefly expounds a series of research theories on private placement.Secondly,it demonstrates the existence of private placement in shengtun mining industry through analyzing its motivation,path of private placement,and influence on the company's performance.on this basis,it puts forward some reference suggestions on how to avoid private placement which is easy to occur in the process of private placement.This article consists of five chapters,the content of which is as follows.Chapter one,introduction.The first chapter is divided into 4 parts.First,the research background and significance of the full text.Second,the literature review includes the research on the discount of private placement,the research on the impact of private placement on enterprise performance,and the research on the transfer of benefits in private placement.The third block puts forward the research ideas and methods of the text,and finally summarizes the basic framework of this article as a whole.The second chapter is a theoretical overview of private placement and interest transmission.This chapter is divided into 4 parts.The first part expounds the related concepts of private placement.The second block lists the motivation for the benefit transmission of private placement.Next,the third block introduces the methods adopted by the major shareholders to transfer their interests.Finally,it is the theoretical basis on which the full text is based.The third chapter introduces the case of interest transmission in the process of private placement in shengtun mining industry.The first part is the company profile and ownership structure of shengtun mining company.The second part is the introduction of the process of two private placement in shengtun mining industry in two years.Finally,it analyzes the motivation of private placement in shengtun mining industry.The fourth chapter is a case study of the interest transfer in the process of private placement in shengtun mining industry.This chapter analyzes the way that shengtun mining carries out interest transfer through choosing the appropriate benchmark pricing date and lower issue price,overestimating the value of injected assets,lifting the ban on the limited sale period,i.e.reducing the amount of cash to cash,and through equity pledge financing after the major shareholders increase.Due to the existence of interest transmission,comparing the stock prices before and after the announcement date of the plan with those before and after the issuance date,it is found that the effect of the announcement of the fixed increase in shengtun mining industry is negative.The two fixed increases also failed to bring significant improvement to the company's business performance and enterprise value.Chapter five,conclusion and enlightenment.This chapter draws three conclusions and four inspirations from the case study of the private placement of the basic shengtun mining industry.Shengtun mining industry is a typical listed company that appears the phenomenon of interest transmission in the process of fixed increase.The analysis and exploration of it are of practical significance to the study of interest transmission in the process of private placement.Through this article,we summarize the main performance that listed companies may show when using private placement to transfer their interests,remind small and medium-sized shareholders to pay more attention to related party transactions in private placement of listed companies and the pledge of large shareholders after private placement,and strive to improve the identification ability of small and medium-sized shareholders to transfer the interests of large shareholders of listed companies,so as to further reduce and avoid the losses that small and medium-sized shareholders may suffer in the transfer of interests.