Research On The Identification And Countermeasures Of Profit Transmission In DW Group Private Placement

Private placement is a way of refinancing equity in the capital market.China’s private placement market started relatively late.Until 2006,China Securities Regulatory Commission promulgated the 30th Order of the Measures for the Administration of Securities Issuance of Listed Companies,which made specific requirements for private placement.Although the private placement has appeared for more than ten years,it has developed rapidly in China’s capital market and has become the main means for refinancing of listed companies in China.The reason why private placement is so popular in the capital market is that it has advantages in many aspects,such as low issuing threshold,low issuing cost and strong maneuverability.However,while the private placement has brought convenience to the refinancing of listed companies in China,its existing problems have become increasingly prominent.A lot of empirical analysis shows that in the process of private placement of listed companies with large shareholders,there is an act of using the event to transfer interests to related parties.This has caused serious losses to the interests of the company and infringed the rights and interests of minority shareholders.The research on private placement first appeared in the United States in the 1980s,focusing on the subscription target and discount of private placement,and the impact on enterprise operation.In China,the research in this field started late,and gradually emerged in the late 1990s,it was mainly carried out in combination with previous studies of foreign scholars.To sum up,although the academia has done a lot of research on private placement,the research of interest transfer is not enough,which is worth further research.At first,this paper introduces the process of private placement of DW Group and the change of shareholding structure before and after the private placement;and then,we analyzes the causes,measures and problems caused by the transfer of interest;finally,according to the problems of private placement of DW Group and the phenomenon of interest transfer,we propose countermeasures and suggestions to curb the recurrence of such interest transfer.Through the research of this paper,the author hopes that it can have certain enlightenment and reference significance to the academic research in related fields,and attract the attention of the majority of small and medium investors in the capital market,in order to prevent the large shareholders from using the private placement to carry out the interest transfer.