The Pricing Base Date Selection,the New Shares Subscribers And The Discount Rate In The Directional Private Placement

In 2006,China Securities Regulatory Commission(CSRC)put forward the directional private placement for the first time.The directional private placement has been the main way of listed companies' equity financing with the time to advance.The amount of directional private placement raised was accounting for 91.50% of the total in 2016.However,due to loopholes of the directional private placement rules made by CSRC,there are general cases of existing the high discount.On February 15,2017,the CSRC issued the Decision on Amending the Implementation Rules for Non-public Issuance of Listed Companies,which was recognized as the only pricing base date on the first day of the issuance period in order to reduce the discount rate and curb the existence of Interest encroachment.This dissertation firstly analyses the correlation of the pricing base date selection,the new shares subscribers and the discount rate.In this dissertation,we use the sample from 2014 to 2016 to carry out regression analysis.The study finds that the discount rate on the first day of the issue date is lower than the discount rate on the basis of the announcement date of the board of directors.The higher the proportion of shareholders to subscribe,the higher the discount rate.In order to further study the relationship among the pricing base date selection,the new shares subscribers and the discount rate,the logit regression model is used to find out that in the case of the majority shareholder's subscription,the listed company chooses the announcement date of the board of directors as the pricing base date,and the major shareholder of the subscription increases the discount rate of the announcement date of the board of directors as the pricing base date.According to the results of this dissertation,the issuance of directional private placement discount is a common phenomenon in China's capital market,which needs to take measures to curb.This dissertation argues that the regulatory authorities should set up laws for the issuance of directional private placement,standardize the information disclosure in the process of private placement and strengthen the supervision of the capital market to further protect the legitimate rights and interests of small shareholders.