Research On The Private Placement Of Listed Commercial Banks And The Encroachment Of Minority Shareholders’ Interests

In March 2016,Shanghai Pudong Development Bank issued a private placement to the largest shareholder and its affiliates.The price is 16.09 yuan per share(less than net assets per share)and this discount rate set a record for A share market in china.This private placement significantly diluted the EPS and seriously infringed the interests of small and medium shareholders.Subsequently,under the pressure of all parties,the Shanghai Pudong Development Bank adjusted its pricing scheme.In a sense,this event has promoted the introduction of new refinancing regulations.This paper chooses this case to focus on the impact of private placement on the interests of minority shareholders.Based on agency theory,system management theory and tunnel excavation theory,this paper uses case analysis method to analyze this private placement of Shanghai Pudong Development Bank and analyses the financing demand of the issuer and the investment motivation of the subscriber.Also this paper explores whether the bank do harm to the rights and interests of small and medium-sized shareholders around the time of the private placement and studies the immediate dilution of the rights and interests of small and medium-sized shareholders and the effect of the private placement issuance.On the basis of the long-term efficiency of fund collection and the effectiveness of protecting the rights and interests of minority shareholders in this incident,the thesis puts forward feasible suggestions for improving the refinancing regulations and improving the efficiency of commercial banks themselves.The characteristic and value of this paper is to select the typical cases around the time of the promulgation of the new rules on refinancing,and to analyze the protection of minority shareholders’rights and interests from the perspective of the banking industry and regulatory background.Therefore,the policy improvement suggestions will be more pertinent.