A Study On The Effect Of Zijin Mining’s Private Placement

In 2006,China’s Securities Regulatory Commission began to implement the "Measures for the Administration of Securities Issuance of Listed Companies",and private placement,as a new financing tool,officially appeared on the stage of China’s capital market.After more than ten years of development and application,private placement has been favored and chased by the market due to their own advantages such as flexible subscription methods,convenient and efficient issuance procedures,and low financial threshold.Due to the short implementation time of private placement in China,its effects have not been fully and profoundly understood,and listed companies also lack specific reference objects that can be practiced.Therefore,it is particularly important to deeply analyze the effects of private placement of a specific listed company.This paper selects Zijin Mining Group Co.,Ltd.(hereinafter referred to as "Zijin Mining")as the research object,which is a leading enterprise in the non-ferrous metal industry with strong financing demand.Taking Zijin Mining’s private placement event as a case,combining the theoretical knowledge to comprehensively analyze the specific effects of Zijin Mining’s private placement.Firstly,this paper sorts out and summarizes the relevant literature and theoretical results,and then explains the theoretical knowledge of private placement.Then combined with the general situation of the industry,the development strategy of Zijin Mining and its own business situation,it expounds its private placement plan,the situation after the completion of private placement and summarizes the characteristics of private placement.And it analyzes the market announcement effect and financial effect of Zijin Mining after private placement,obtains the problems and risks of private placement,and finally summarizes the case and puts forward suggestions.Based on the above analysis,this paper finds that private placement has a positive short-term market announcement effect.The private placement event has promoted investors to significantly increase their expectations of the company and promoted the stock price to rise.Both the daily excess return rate and cumulative excess return rate in the event window period have increased to some extent,and the impact on its longterm financial effect is different,which is generally good.In addition,the selection of subscription objects for private placement binds the development strategy of the company in the next few years,and the capital operation after private placement financing is closely related to the longterm strategic goal of the company,which affects the future development of the company to a certain extent.However,listed companies need to warn of various issues such as the motives for money circling under the nonstandard information disclosure,the implementation and benefit risks of investment projects in the process of private placement.Finally,this paper suggests that the listed companies should carefully choose the target of subscription,choose the capital operation mode that adapts to the future strategic development of the enterprise,and pay attention to the long-term financial effect of private placement and improve the standardization of corporate private placement information disclosure.