Case Study On The Private Placement's Price Of Xinhua Media

Since the reform and opening up,China's economic development level straight up,the demand for refinancing capital and equity of listed companies has promoted the evolution of refinancing capital market in China.Since the reform of shareholder structure,directional issuance possesses more unparalleled advantages than other financing methods,for example,low issuance qualification,simple issuance procedure,relatively low on the issue cost,without increasing the market expansion pressure during lock-in period,and also benefiting to achieve overall listing of companies.China formally introduced the directional issuance system from2006,until the end of 2016,there are a total of 2,724 listed companies to implement the method of directional issuance to refinancing in China's A-share market,among which,there were 793 directional A-share number in 2016,the total fund-raising was 16,685.68 billion yuan,and this amount and the sum of money created a record high,moreover,private placement gradually evolve into one of the main ways to refinancing equity among listed companies in China.However,most of the private placement is targeted for a small number of specific issuers,issuing in a larger scale,involving the wealth distribution between new shareholders and the original shareholders,especially when the major shareholders participate in the case for subscribing new shares,which are often undertaken in discounted way,and its issuance discount is significantly higher than that of the major shareholders involved in the subscription,in which the minority shareholders do not have the right to speak.Therefore,a lot of relevant scholars believe that there are the use of low discounted price to damage the interests of minority shareholders in listed companies during the process of private placement.Moreover,the issuance price of private placement and the subscribing proportion of shareholders both impact the wealth distribution,so the key is how to pricing.in China,it is common for the private placement exists the phenomenon of high discounted price,which involves transporting interests behavior of the major shareholders.This thesis expounds the theoretical basis of the discounted drivers and the economic consequences of the listed companies implement private placement,on the basis of which to combine the theory and practice,mainly to study the process of directional issuance of major shareholders of the interests of the transfer behavior and discount rate as the main line,selectthe Xinhua media for the study Object,taking the method of literature review and case study to analyze the discounted.This paper introduces the basic situation of Xinhua media issuance,and then analyzes the motivations of private placement from the perspective of the interests of large shareholders and the market situation.After excluding the suspicion of interest transmission,it is found that the market quotation is the influence of the directional increase.And then from the market reaction and the financial effect of the two sides to check its economic consequences after the increase,found that after the increase caused by a positive market reaction and good financial effect.Finally,the paper concludes that,from the perspective of investor protection,the author puts forward some suggestions on how to improve the pricing mechanism and the capital market and corporate governance.