The Analysis Of The Private Equity Refinancing Of Bank Of Communications

The private placement with its unique advantages has gradually become the mainstream market financing source implementation in 2006 in China "the issuance of securities of listed companies management approach",the implementation of the measures to restore the market to the most basic financing function.Private placement involves a wide range of enterprises in asset acquisitions,project financing,supplement working capital,debt repayment can be used to solve the financing needs of private placement issues.Compared with the public offering,private placement issuance costs are low,the issue is simple,low threshold,short financing time and other advantages,sought after by listed companies,in recent years,the number of issued surge.After the private placement,the enterprise not only obtains the fund,but also obtains the strategic partner,promotes the company long-term development.In the process of private placement,the listed companies in the announcement of additional plans,the implementation of the private placement of these two stages,the impact of the stock market volatility in the two markets,with a clear market effect.But sometimes the stock price can not really reflect the value of the enterprise,it is necessary to use financial indicators to analyze the impact of private placement on the performance of the company.In this paper,the hot issue of private placement as a starting point,select the financial industry listed banks as the research object of the bank,the private equity refinancing comprehensive analysis.First of all on the directional add engine and related literature utility for understanding and summary;and then introduces the basis in the bank case,analyzes the price effect and the financial effect of Bank of Communications the placement of the motivation,the cost of equity financing,financing risk and bring additional directional.Finally,the conclusion and enlightenment.The main conclusions of the paper are as follows:(1)the placement was proposed in the situation of increasingly stringent regulatory requirements and increasingly fierce competition in the industry,to supplement core capital,the bank had indeed had a private placement financing needs;with its low cost of equity financing,become the best choice in the package;the implementation of the private placement discount when facing the risk of shareholder equity dilution,risk management,risk control.(2)Bank of communications,both in the scheduled increase announcement or after the implementation of the stock price increase is a negative effect,mainly affected by the market downturn.(3)after the completion of the private placement of the bank's financial situation improved.