Analysis Of The Transfer Of Benefits In The Directional Additional Issuance Of Asset Injection

The split share structure reform has laid the foundation for the successful implementation of private placements.Compared with other financing methods,private placements have many advantages such as simple issuance procedures,low costs and low risks.For a time,private placement has become the preferred way for many listed companies to raise funds and expand their operations.The number of private placement companies and the scale of funds raised have been expanding.The number of companies and the size of raised funds have doubled in recent years.The size of private placement funds has accounted for more than half of the refinancing.The directed additional issuance of assets can inject assets that cannot be listed and circulated into listed companies and convert them into assets that can be listed and circulated.The circulating assets have strong cashability.This is one of the important reasons that large listed shareholders are attracted to inject other assets under their control into listed companies.However,due to the current concentrated ownership structure of many listed companies in China,large shareholders have advantages over other small and medium shareholders,such as natural discourse power and asymmetric information.They have the main right to speak,so many actions of listed companies are under the control of the major shareholders.In addition,due to the imperfect domestic related laws and regulations and regulatory systems,the cost of non-compliance by major shareholders is relatively low.When the interests of major shareholders and small and medium shareholders conflict,the large shareholders will take advantage of their own control to seek private benefits for themselves,carrying out benefits transmission,and infringing the interests of other small and medium shareholders.This article adopts a case analysis research method.After consulting a large amount of literature,ST Guanfu is selected as the research object to analyze its recent private placement.First,trying to analyze the equity structure,operating conditions,and the process of private placement of ST Guanfu.Then analyzing the motivations and methods of the major shareholders to transfer benefits in the process of asset injection.Finally,analyzing the changes in market performance and financial performance of listed companies caused by the transfer of benefits.In the process of targeted additional issuance of asset injections to hollow out listed companies,large shareholders often adopt covert methods and multiple ways to deliver benefits together,making it difficult for small and medium-sized shareholders to detect.This article analyzes many ways such as issuing shares at low prices,injecting inferior assets,increasing assets value,earnings management,high-value cash to harm the company's interests and seek benefits for itself,which ultimately leads to a sharp drop in listed company's stock prices,a decline in listed company's financial performance,and serious economic violations of the small and medium shareholders' interests.Finally,aiming at the reasons and methods for the benefit transfer of the major shareholders in the directional asset issuance,this article combines case analysis to provide solutions and suggestions: improve the pricing mechanism of the directional asset issuance and the evaluation mechanism of the injected asset subject matter,strengthen the supervision of the subscription target,strengthen the listed companies in the directional asset issuance,disclose important information,optimize the equity structure of listed companies,strengthen internal control while balancing the rights of major shareholders,and improve the independent director system.