Research On The Motivation And Financial Performance Of Private Placement To Introduce Oversea Strategic Investors

With the continuous improvement of China’s securities market and diversified development of refinancing,private placement has become the main force of refinancing,which is mainly due to the advantages of relatively low cost,simple operation process and low access barriers,so it is widely favored by listed companies and securities companies in the capital market.At the same time,in the context of economic globalization,China has gradually integrated into the world economy by relaxing restrictions on foreign investment in the Chinese market.Many domestic Banks and listed companies seize the opportunity first and introduce overseas strategic investors one after another,with similar motivation,mainly for obtaining capital,optimizing management and learning cutting-edge management technology experience to improve performance.For the introduction,listed companies often take the form of private placement,so the introduction of overseas strategic investors has become one of the common modes of private placement.As for the introduction of private placement to overseas strategic investors,most of the research objects in the academic circle are Banks,and some researches on listed companies are empirical studies,but few studies on single cases.Therefore,this paper takes YH as the case object,based on reading relevant literature,firstly elaborated the theories related to private placement,reviewed relevant domestic and foreign studies,and then introduced the private placement of YH,the case company in this paper,to foreign strategic investor The Dairy Farm Company,Limited.On this basis,combined with the company’s business strategy,summarized YH this time the introduction of foreign strategic investors to participate in private placement specific motivation.Finally,this paper analyzes the impact of the introduction of foreign strategic investors in private placement on the company’s financial performance from the perspective of short-term market effect,asset quality and main financial indicators.Conclusion: the private placement of YH supermarket is carried out in the context of its strategic planning and overall development of the industry.The short-term market effect is significant,and the long-term financial performance is generally positive from the analysis results of various financial indicators,indicating that the private placement has a positive impact on the financial performance of YH supermarket.It is hoped to provide some reference information for the listed companies that intend to introduce overseas strategic investors through private placement.