The Research On The Motivation And Economic Consequences Of Introducing Foreign Strategic Investors In Private Placement

With China's reform and opening-up and economic globalization,the development prospects of Chinese enterprises by foreign enterprises concerned,China's relevant legal system is increasingly perfect,which are among the foreign strategic investors in China's capital market has created conditions.In recent years,more and more foreign enterprises to invest in Enterprises of our country a lot of money and have achieved strategic cooperation.Initially,foreign strategic investors focused on China's investment bank,but with the domestic capital market gradually improved,foreign investment companies to expand the range of other industries.There are a lot of foreign strategic investors channels,because of its low cost and limit,Private placement have been recognized by listed companies and become the most important financing mode.In China's capital market,the behavior of domestic enterprises to introduce foreign strategic investors by means of private placement is increasing,and the corresponding problems come with it.Therefore,the investigation and research on the introduction of foreign strategic investors into private placement is increasing gradually.This article uses the literature analysis method,the case analysis method and so on,and combs the literature about the directional issuance and the introduction of the foreign strategic investors,on the basis of expounding the related concepts and theories,The author studies the case of introducing Pross into CMST Development by fixed increase method.Firstly,the paper introduces the basic situation of CMST Development and strategic investors,as well as the background of directional additional issuance.Secondly,the PEST model is used to analyze the operating financial situation before CMST Development,and the motivation of the additional share placement is analyzed.Then,the paper probes into the introduction of additional shares of CMST Development into foreign wars.Investors on corporate governance,financial and other aspects of the impact,and to test the effect of the placement.Finally,the relevant conclusions and revelations are drawn.It is a beneficial attempt and exploration for other enterprises in China to introduce foreign strategic investors.