Study On The Long-term Excess Return Of Private Placement

The rapid development of China’s private placement market has brought along a series of problems and potential crises.Based on this,the CSRC(China Securities Regulatory Commission)has promulgated a series of policy to regulate the market in 2017.At the same time,the size of the market has declined sharply,leading to investors’ doubts about the development prospects of the market.In this paper,the time interval is divided into from plan announcement to restricted release date as well as from the public announcement to restricted ban on day,analysis the influence factors of different interval excess yields and quantify the impact of the new measures,so as to come to the conclusion:For medium and small-sized investors,it is necessary to choose a low level of financial leverage,good growth,strong profitability and a large increase or decrease around the public announcement.For institutional investors,we should pay more attention to the selection of the target with good fundamentals,high asset-liability ratio and relatively little fluctuation before issuance.For the New Deal measures,this paper found that:both "will the price setting was issued on the first day" and "issuance shall not exceed 20%" have obvious negative effects on the excess yields starting from plan announcement day,have no effect on the excess yields starting from public announcement day.The former shows that the policy on the secondary market speculators speculation has good inhibition.The latter shows that the rational institutional investors pay more attention to the company fundamentals,is not sensitive to the reaction of the price setting and issuing scale.