Private Placement of Public Equity in China

  • Pengcheng Song

Part of the SpringerBriefs in Finance book series (BRIEFSFINANCE)

Table of contents

  1. Front Matter
    Pages i-xvi
  2. Pengcheng Song
    Pages 1-7
  3. Pengcheng Song
    Pages 9-20
  4. Pengcheng Song
    Pages 39-52
  5. Pengcheng Song
    Pages 53-63

About this book


By retrieving entries from the financial-data vendor Wind and collecting relevant data from private placement statements, the author builds a proprietary database and studies five aspects of private placement in China. He examines which listed firms are more likely to choose private placement over SEO in refinancing; he looks into the controlling shareholder’s decision on whether or not to purchase privately placed shares; he investigates how the offer discount is determined; he calculates announcement periods for abnormal returns on private placements. Where the abnormal return is significantly positive, he documents positive long-run abnormal return on private offerings and evidence supporting the under-reaction hypothesis. Finally, he concludes that the largest shareholders tunnel by means of excess discounts from which they benefit but which is harmful to other shareholders.


China Stock Market Private Investment in Public Equity Private Placement of Public Equity Private Placement of Stocks Seasoned Equity Offering Tunneling

Authors and affiliations

  • Pengcheng Song
    • 1
  1. 1.Department of Research and DevelopmentChina Huarong Asset Management Co., LtdBeijingChina

Bibliographic information

  • DOI
  • Copyright Information The Author(s) 2014
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-55092-8
  • Online ISBN 978-3-642-55093-5
  • Series Print ISSN 2193-1720
  • Series Online ISSN 2193-1739
  • About this book