| Since the Securities Regulatory Commission promulgated the "Measures for the Administration of Securities Issuance by Listed Companies" in 2006,announcing the opening of the era of stock circulation,China’s listed companies have chosen the important way of directional additional issuance in terms of refinancing,which has the advantages of low cost,high efficiency,and fast process.The policies and programs for private placement were successively promulgated in 2020.The formulation of new policies has become more open and restrictions have become more relaxed,further increasing the trend of China’s private placement market.However,compared to developed countries,the problems faced by China’s private placement are more prominent.China’s private placement started relatively late and took a relatively short time;Moreover,relevant laws and regulations are not yet perfect,and regulatory measures are also lacking.These problems can easily lead to various difficulties faced by companies when implementing directional additional offerings,and the financing effects of different companies after completing directional additional offerings also vary greatly.In recent years,the chemical industry has been continuously developing and expanding,and the role of chemical enterprises in promoting the development of China’s national economy has become increasingly prominent.However,there is still a significant lack of research in this area in the basic chemical industry.This article aims to conduct a case study with Wanhua Chemical as the object,providing theoretical and practical support for research related to targeted additional offerings in the industry.Firstly,in this article,the background and methods of the research are introduced in detail,and the relevant literature is comprehensively reviewed;Secondly,summarize the basic theories related to private placement,provide sufficient theoretical basis for subsequent case studies,and combine their relevant theories to conduct in-depth analysis of how private placement affects economic effects,with a view to exploring its specific mechanisms.Finally,taking Wanhua Chemical as the research object,this paper analyzes the different motivations for the company’s previous and subsequent private placements,deeply explores the effects of private placements on the market,financial,and non-financial aspects,and puts forward relevant suggestions on the reasons for changes in the effects of private placements.According to research,Wanhua Chemical’s first private placement was mainly driven by the following three factors: raising funds to reduce capital pressure,expanding business segments to expand enterprise scale,and promoting the company’s development strategy of moving towards "World Wanhua".The second private placement is mainly to respond to the national "the Belt and Road" policy,solve horizontal competition,reduce related transactions,and improve the international industrial layout.The research shows that using the event study method to measure the stock price effect of Wanhua Chemical,the first private placement did not cause a significant market reaction,while the second private placement produced a positive market reaction.In the study of changes in financial effects,it is concluded that the two targeted additional offerings of Wanhua Chemical have overall improved the short-term financial situation of the enterprise,but the performance of long-term financial effects is not optimistic.At the non-financial level,it is found that the effective implementation of this operation has improved Wanhua Chemical’s R&D and innovation capabilities.However,it is worth noting that in the process of private placement,there are also situations that harm the interests of small and medium-sized shareholders.Based on this,this study proposes optimization suggestions aimed at promoting listed companies and regulatory authorities to improve the institutional system for directional additional offerings,and promoting the healthy and orderly development of China’s capital market. |
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