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© 2014

Private Placement of Public Equity in China

  • First book to investigate both extensively and intensively into Private Placement of Public Equity in China

  • Discusses the topic Analyzing private placement in China, one of the most interesting empirical issue currently explored by researchers

  • Helps other PE firms to pursue opportunities in PIPE (Private Investment in Public Equity)

Book

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

Introduction

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.

Keywords

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

Authors and affiliations

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

About the authors

Pengcheng Song holds a PhD in Finance from the University of Hong Kong and a BA in Economics from Renmin University of China. Currently he works as a post-doctoral fellow at China Huarong Asset Management Co., Ltd, which is one of big four “bad banks” in China. Prior to Huarong, he spent one year as an Associate at Arbor Ventures, a pioneer venture capital firm focused on technology investments in Hong Kong, Japan, Singapore and ASEAN. Before that, he spent two years as an Associate at VantagePoint Capital Partners, where he co-developed China Low Carbon Index and was responsible for developing investment thesis on the financial technology sector. Besides private placement of public equity, Pengcheng is also interested and has published a lot of academic papers in internet finance and Chinese economy.

Bibliographic information

  • Book Title Private Placement of Public Equity in China
  • Authors Pengcheng Song
  • Series Title SpringerBriefs in Finance
  • Series Abbreviated Title SpringerBriefs Finance
  • DOI https://doi.org/10.1007/978-3-642-55093-5
  • Copyright Information The Author(s) 2014
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics Economics and Finance (R0)
  • Softcover ISBN 978-3-642-55092-8
  • eBook ISBN 978-3-642-55093-5
  • Series ISSN 2193-1720
  • Series E-ISSN 2193-1739
  • Edition Number 1
  • Number of Pages XVI, 80
  • Number of Illustrations 3 b/w illustrations, 0 illustrations in colour
  • Topics Finance, general
  • Buy this book on publisher's site
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