Analysis On The Motivation And Effect Of Introducing Strategic Investors Into Directional Add-issuance

Compared with other external financing methods,private placement has the advantages of low entry threshold and high financing efficiency,so it has been widely recognized by listed companies and has become the mainstream way for listed companies to conduct equity refinancing in China.Many listed companies seek impetus for their development by introducing strategic investors through private placement.In 2020,China Securities Regulatory Commission(CSRC)will issue new rules on refinancing,clearly stipulate the definition of strategic investors,raise the threshold to standardize the private placement market,and promote the future "strong alliance".Thus it can be seen that the introduction of the relevant national policies also shows the attention of the directional additional market,the directional additional market burst out a new round of vitality.Using the method of case study,this paper takes the event of the introduction of the private placement of China TCM into the strategic investor Ping An Life as the research object,systematically studies the motivation and effect of the private placement of China TCM as the introduction party and the motivation and effect of the strategic investment of Ping An Life as the introduction party.First of all,the domestic and foreign literature on the introduction of strategic investors in private placement is summarized,the relevant concepts of private placement and strategic investors are clarified,and the theoretical basis related to the introduction of strategic investors in private placement is systematically elaborated,such as synergistic effect theory,corporate governance theory and strategic management theory.In the part of case study,a comprehensive introduction of the case was first made.The background of the case was analyzed through the current situation of the private placement market and the development of the traditional Chinese medicine industry.The reasons for the selection of the case were expounded in combination with the actual situation,and then the situation of both parties of the transaction and the process and content of the private placement introducing strategic investors were introduced in detail.Secondly,the motivation and effect of the private placement of China TCM as the introducer are studied and analyzed.The main research conclusions are as follows:China TCM is the motivation of introducing strategic investors a according to the industry environment,the enterprise development strategic perspective,enterprises need to balance business accounted for,improve market competitiveness,the second is to obtain resources from the research and development and production of the advanced technology,boost their own research and development innovation,it is to reduce their own debt service pressure,improve profitability.The main effect of introducing strategic investors into China TCM is that the effective integration of strategic investment resources enables enterprises to realize synergies;the second is that the introduction of strategic investors can improve financial status and market value;the third is that the introduction of strategic investors can improve corporate governance ability.In general,the introduction of strategic investors in the private placement has brought obvious positive effects for China TCM.Ping An Life,as the introduced company,makes strategic investment to achieve complementary advantages of resources and achieve synergies,so as to accelerate the realization of the closed loop of“medical and health ecosystem”.According to the research conclusions,this paper has the following enlightenment:(1)A listed company should choose the appropriate financing method according to its own reality.(2)Listed companies should take advantage of strategic investors to promote their own development.(3)The two sides of private placement form a community of interests.