A Study On The Timing Choice Of Directional Additional Issuance Of Listed Companies In China

With the implementation of non-tradable shares reform in 2006,the financing function of the securities market has been restructured,and the subsequent directional issuance has become a new equity refinancing tool in the context of full circulation.Due to its low risk,low cost and high efficiency of financing,directional issuance has been favored by many listed companies and become the most important financing tool in the refinancing market.However,after studying the relevant data of the domestic stock market in the past ten years,we find that listed companies are not keen on directional issuance at any time,and their size will increase rapidly in a period of time,but decrease quickly in another time.So what are the factors that influence the decision-making of listed companies about the timing of private placement,and which timing factors are more important for enterprises?This paper combines case analysis with general law analysis,hoping to explain the above problems.Firstly,this paper combs the relevant research results of equity refinancing and private placement,and introduces the timing theory.Then,it summarizes the policy of private placement in China,and through macro data to understand the current situation of private placement market in China,in order to understand the institutional characteristics and market characteristics of private placement in China.Through the analysis of two specific cases of Shengtun Mining and TCL Group,this paper probes into the consideration of timing of directional issuance of listed companies.Finally,this paper studies whether the conclusions drawn by case analysis are of universal significance through statistics of relevant data of domestic securities market.This paper draws the following conclusions:(1)Market quotation is an important factor in the timing of private placement of listed companies.Enterprises should raise funds for private placement at a better time to expand production.It is not suitable for private placement when the market is poor.(2)Profit level is also a factor for enterprises to consider the timing of growth.Enterprises tend to choose the time when the level of profitability is good for directional issuance,because it conveys a positive signal to investors.(3)Stock valuation is also a major factor in the timing of private placement of listed companies.Large shareholders can obtain high profits by subscribing for shares at a low price.When choosing the base date of pricing,enterprises tend to lower the price,and eventually issue stocks when the stock price isrelatively overvalued.(4)Government regulation is also a factor for enterprises to consider directional issuance,but it is not the main factor.