The Motivation And Effect Of China XD Electric Introduction Of Strategic Investors Through Private Placement

With the gradual deepening of economic globalization,more and more overseas enterprises have entered the Chinese market to invest in and cooperate with Chinese enterprises.Initially,most of the foreign strategic investors were state-owned banks,whose fundamental purpose was to improve corporate governance and risk management.With the gradual improvement of the capital market in our country,the investment and cooperation of overseas enterprises have begun to expand to various industries.Listed companies hope that by introducing foreign strategic investors to help companies improve the company's governance structure,strengthen the business constraint mechanism,improve technology development capabilities,enhance corporate image and corporate performance.Therefore,our government encourages and supports enterprises to introduce overseas strategic investors.Since the implementation of "Measures for the Administration of the Issuance of Securities of Listed Companies" in 2006,private placement has won the general recognition of listed companies in China due to its low issuance costs,simple issuance process and low admittance threshold,and has become the capital market of our country One of the most important equity financing models,most listed companies to take the strategy of private placement to introduce strategic investors.However,not all companies that have introduced strategic investors have met their expectations.However,there is not much literature on using case analysis to study the motivation and effect of using private placement model to introduce foreign strategic investors.This article summarizes China The successful introduction of GE's successful introduction of GE into one side to reveal the effect of China's listed companies using private placement to introduce overseas strategic investors can provide experiences for other enterprises to introduce overseas strategic investors.This article mainly uses the combination of normative research and case study.In terms of normative research,a large amount of domestic and foreign literatures were reviewed and summarized.The motivations of enterprises to introduce strategic investors,the role of strategic investors in corporate governance and the impact on corporate performance were also discussed.In the part of case study,taking China Western Electric's private placement to General Electric as the research object,the paper introduces the private placement program and its implementation process,the background and characteristics of both listed companies and strategic investors,and the integration after the introduction of strategic investors.The motivation of introducing GE into GE as a strategic investor and the role of strategic investors in corporate governance are analyzed.The effects of GE's introduction of GE into China are also analyzed from the aspects of financial benefits,corporate governance and shareholder wealth.Based on the analysis of the effect of the introduction of the private placement of strategic investors by the case companies,this paper summarizes the successful experiences of the case companies in introducing foreign strategic investors.This article is divided into five parts.The first chapter is introduction.Mainly on the background and significance of this topic to be selected to collect the relevant literature on the topic selected,and finally explained the article's research ideas and methods and build the overall framework of the article;the second chapter is the theoretical overview.Explain the theory of private placement by introducing strategic investors,and classify the concept and characteristics of strategic investors.Then it introduces the motivation of listed companies to introduce strategic investors and the role of strategic investors in corporate governance.The third chapter introduces the case.This part analyzes the basic situation and characteristics of China Western Electric and its strategic investor General Electric,and then introduces the whole process of private placement.Chapter 4 is a case study.This chapter focuses on the analysis of the motivations for China to introduce GE into private placement and its impact on corporate governance.With the help of multiple financial indicators,this paper makes a comparative analysis of the operating performance and shareholder wealth after the introduction of strategic investors into China's western electricity market,and elaborates the reasons for the growth of corporate performance after the analysis.The fifth chapter is the case conclusion and enlightenment.After the previous analysis in this chapter draw the corresponding conclusions and enlightenment.The contributions of this paper are as follows:(1)In the past,the research on the introduction of strategic investors for private placement in our country mainly focused on the banking industry,seldom studied from the perspective of non-bank listed companies.This article aims at introducing the strategy of introducing foreign strategic investors The research enriched the research literature about the strategic investors introduced by private placement.(2)In the past,the research on the effect of the introduction of strategic investors by listed companies in our country mainly focuses on the empirical research.This paper studies the effect of the private placement of listed companies on the strategic investors by using the combination of normative and case studies.It can provide experience for the introduction of strategic investors for listed companies in the future.