Qilu Bank's Preferred Stock Financing Case Analysis

As a new financing tool launched in recent years in China's NEEQ,the preferred stock has both the characteristics of stocks and bonds,and has better financing capabilities.After the introduction of the preferred stock into the NEEQ,a number of companies issued a plan that financing by preferred stock and tried to use preferred stock for financing.However,the development of China's new NEEQ preferred stock is still immature,and it will inevitably appear that companies blindly issue financing plans for preferred stock.At present,domestic scholars tend to study theoretically,and most studies are based on foreign preferred stock cases.Combining with domestic case studies,the research on the preferred stock are very short,and companies cannot make good use of preferred stock.On November 14,2016,Qilu Bank issued the “Qilu You 1” and successfully financed 2 billion yuan.It is the company that relies on preferred stock to obtain the most funds in NEEQ.The successful issuance of Qilu Bank's preferred stock also triggered the industry's thinking: How can companies successfully issue preferred stock and whether all companies can successfully issue preferred stock?This article starts with the differences between preferred stock and other financing tools,analyzes the matching between preferred stock and NEEQ,and concludes that the downturn in the trading of main board and NEEQ at the end of 2016 strengthens the match between “financing” securities and NEEQ.So,preferred stock is more matchable than stocks with NEEQ.Secondly,starting from their own advantages and industry advantages,analyzing Qilu Bank's advantages in comparison with other companies in this financing.Thirdly,the scarcity of bank preferred stock in NEEQ has become an important factor in promoting its successful distribution.Fourthly,the reasonableness of Qilu Bank's issuance timing makes it more convenient.In addition,this article comprehensively analyzes the motivation of Qilu Bank to select preferred stocks,and companies should reasonably consider their own actions before issuing.This article draws inspirations that: Firstly,the basic premise of financing success is that financing tools and financing platforms have a certain degree of matching;Secondly,the relative advantages of financing companies on the financing platform is the internal driving force for their successful issuance;Thirdly,the possibility of conversion of financing tools and the possibility of a corporate transformation platform are the external driving forces for its successful issuance;Fourthly,the appropriateness of the timing of financing is basic guarantee for short-term financing;Fifthly,a reasonable financing motive is a prerequisite for its successful issuance.Based on the revelations obtained,this paper gives corresponding recommendations for companies issuing preferred stock,and hopes to benefit to China's NEEQ preferred stock market.