Research On The Causes And Economic Consequences Of The Industrial Bank's Private Placement

With the gradual improvement of the supervision framework of the Basel III,the relevant regulations of the China Banking and Insurance Regulatory Commission have also been introduced simultaneously.Therefore,under the increasingly stringent capital supervision requirements,how to quickly and effectively realize capital replenishment has been a commercial issue Banks focus on issues.The release of the new refinancing regulations in February 2020 once again emphasized the advantages of private placement.Private placements have always been known for their simple audit procedures,low issuance costs,low information disclosure requirements,and low issuer qualification requirements.Therefore,they are very popular with commercial banks,but the economic consequences of private placements by various companies are also different.Therefore,the relationship between the motivation of directional additional issuance and economic consequences has been a hot topic in the theoretical and practical circles.The directional placement plan designed by Industrial Bank in 2016 to supplement the company's core tier one capital not only successfully raised the required funds and supplemented the core tier one capital,but also consolidated the position of a major shareholder,and brought about the optimization of the business layout and the steady increase in operating capacity.Economic consequences,so the directional issuance of Industrial Bank in 2016 is worthy of further detailed research.In this paper,through combing the relevant papers and theories such as bank financing and directional additional issuance,this paper selects joint-stock commercial banks that rank close at the same period,and analyzes the external driving factors for their financing under the international standard CAMEL rating.The fixed increase plan is the starting point,analyzes the internal driving factors of its financing,and studies the motivation of the Industrial Bank's additional issuance from multiple perspectives.On the other hand,with regard to the economic consequences of this directional issuance,this article uses the event research method to observe its short-term effects,and the long-term effects by constructing three categories of 6 dimensions and 17 sub-indicators of the evaluation index system of thecompetitiveness of commercial banks.Analysis of capital status,profitability,risk management and control,scale and strength,operation management,and innovation capabilities.The research found that the overall short-term effect after the directional issuance has shown an overall upward trend,the company's stock price has increased to a certain extent,the company's long-term effect has been improved overall,and the company's strength has been significantly enhanced,showing a positive side.This article aims to provide experience and inspiration for future listed companies to refinance by studying the successful cases of directional issuance of Industrial Bank,and also hopes that the adjustment of the regulatory policies of the supervisory layer will provide directions for the use of directional issuance of listed companies,enhance the review efforts,and integrate Relevant resources,promote synergies,improve the operating level,and guide the company on a long-term,good and fast development path.