Jiuding Acquired The Performance Analysis Of The Listing Of Zhongjiang Real Estate Curve

In recent years,the Chinese government has issued a number of policies to support the public business.At the same time,the reform of capital market is deepening.These changes in the market environment have been providing convenience to the Private Equity industry in the project investment and exit channels.The number of Private Equity fund established and the funds they raised have been growing.In this way,the Private Equity industry develops rapidly.Jiuding Investment is outstanding in Private Equity industry in China.Its performance indicators are among the forefront of the industry,including total assets,investment return and so on.In 2015,Jiuding Investment made its Private Equity business listed through the acquisition of Listed Company Zhongjiang.This merger and acquisition event not only makes Jiuding become the first Private Equity company listed in the main board market,it also created a new path of exit in investment projects.Meanwhile,the domestic research of listed Private Equity company still stops in the study of foreign cases and research on investment exit channels is also quite repetitive.Under this background,this paper selects the Jiuding case to supplement the existing research.Through the study of scholars' existing research works,I refined their important research results on the short-term market performance of acquisition,listed Private Equity companies and exit mechanism.On the basis of these research results,combining with related theory and the actual situation of domestic Private Equity market,this paper selected the first listed private equity casein domestic market to analyze.At first,this paper introduced this case briefly,and then used event study to do empirical analysis on its short-term market performance.In the empirical analysis,this paper takes both its acquisition announcement date and merger date into consideration.I analyzed the stock price volatility caused by the announcements occurred on these two days to check whether this event can obtain good short-term market performance.At last,this paper analyzed this case's operation mode comprehensively to explain short-term market performance of this acquisition,and made some suggestions for the relevant agencies and investors.The study found that this acquisition information may have leaked.Before the announcement of this event,Jiuding's stock price rose sharply,but near the announcement date its stock price drop.This is probably the tippee hope to obtain abnormal returns in the acquisition announcement.At the same time,Jiuding actually achieved good market performance on the acquisition of Zhongjiang.We found that in addition to the acquisition announcement caused a short-term rise in the Jiuding's stock price,the success of the reorganization of assets between Jiuding and Zhongjiang also brought rising stock prices.Both of the two events brought short-term wealth effect to the shareholders of the company.In this regard,the relevant departments should strengthen the supervision of insider trading on mergers and acquisitions,enterprises should also pay attention to the integration of assets between the two sides to maximize synergies.Through the analysis of mergers and acquisitions mode of this case,we believe that this acquisition is able to obtain good market performance is because Jiuding can take its development status and market environment into consideration,choose the suitable subject of mergers and acquisitions and make a successful reorganization in a short time.