Comparison And Analysis Of Private Placement Patterns

In October 2005, the securities law had been amended, and this paper allowed a listed company to undertake private placement at first time in our country. On May 8,2006, the measures for the administration of securities issuance of listed companies have been promulgated and implemented, a non-public issuance of new shares to particular objects (this article referred to private placement) meant that the law have been laid down to ensure application of private placement in Chinese capital market. In China’s share market, for example, according to the WIND from 2006 to August 2010, there were 508 private placement events, involved 436 listed companies, issuing 128.163 billion shares, financing 439.648 billion Yuan. The features of private placements of listed companies in China are:(1) from the perspective of industry classification of listed companies, it’s relative concentration of the industry distribution. From 2006 to August 2010, manufacturing, real estate and power, gas and water production and supply industry were first three industry distributions in private placements of listed companies. (2)The motivations of listed companies’ private placements were diverse. At first, listed companies issued stocks privately in order to quickly resolve the financing problems. Then, big shareholders through purchasing shares by assets concentrated their rights of control, meet overall listing on the market, the company could introduce strategy investors or restructure important assets, etc. (3) Basically, the objects of private placements were the big shareholders and institution investors. (4) Private placements had a variety of subscribe ways. In addition to cash subscribe, private placements still can use non-cash assets, equity and debt etc to subscribe. Private placements like a modern financing style, was widely used in listed companies’ refinancing, because of its own expenses low, simple procedure, convenient operation, easy journey, was more than the main means additional rights and public. In the current Chinese stock market, it has the largest investors chasing hot. To ensure that private placements could be applied better in the securities market, it is necessary for us to regulate their patterns. See, there is little from the current of directional seasoned pattern aspect normative research, despite nearly two years some empirical studies, but is all about the private offerings, are focuses on private placements management performance analysis, directional seasoned motivation, announcement effect, discount, big shareholder interests of directional seasoned devour it, and the influence of related group.At present, it is necessary for us to study the patterns of private placement as a starting point, to explore the correct application of this refinance means. private placement since has become listed companies, the main channel refinancing for its theory and practice experience is deepening, are especially important in Chinese listed companies, only when additional financing directional as their financing channels, choose what kind of mode, without fully understanding whether the operating performance of improved in the future. So in-depth study on patterns of private placements of listed companies in China has practical value and significance.The main purpose of this study is providing certain references to a listed company how to choose a proper private placements model in the refinancing process according to its circumstance, and giving some policy recommendations to securities regulators in private placements.