What Is Private Placement?
Private placements, that is, private investment funds, are raised from qualified investors through non-public offerings and invested in stocks, equity, bonds, futures, options, fund shares, and other investment targets stipulated in investment contracts (such as art, wine, etc. ) Investment funds, referred to as private equity funds. [1]
Basic Information
- Chinese name
- Private placement
- Foreign name
- Private Placement
- nickname
- Private offering
- Organization form
- Corporate contractual virtual combination, etc.
- Private Fund Classification
- Hedges, private equity, venture capital funds
- Government, financial institution,
- Private equity originated in the United States. In 1976,
- Three Paths for the Development of Chinese Private Equity
- Split share reforms provide conditions for the rise of private equity funds
- The split share structure reform is an established goal of the government. After the reform, the number of shares that can be circulated in China's stock market will be three to four times that before the reform.
- Company style
- Corporate private equity funds have a complete corporate structure, and their operations are more formal and standardized. Company-style private equity funds (such as "So-and-so investment company") can
- Changes in the international and domestic situation have opened up space for the development of private equity funds
- In recent years,
Detailed explanation of private placement
- Fund classification knowledge
- Funds are divided into public and private funds according to whether the funds are raised for the general public. According to the main investment target, they can be divided into securities investment funds (the target is stocks), futures investment funds (the target is futures contracts), currency investment funds (the target is foreign exchange), Gold investment fund (underlying gold), FOF
- Private placement
- The so-called funds in China should be accurately called securities investment funds, such as Dacheng, Huaxia, Castrol, Bank of Communications Schroder, etc. These public funds are subject to strict supervision by the CSRC, and their investment direction and investment ratio are strictly limited. Most of them manage more than tens of billions. funds.
- Private placements are strictly restricted in China because private placements can easily become illegal fundraising. The difference between the two is whether it is fundraising for the general public and whether the ownership of the funds has been transferred. If the number of people raised exceeds 50 and transferred to a personal account, It is determined as illegal fund-raising, which is a very serious economic crime that can be sentenced to death, such as Wu Ying of Zhejiang, Delong Tang Wanxin, and Madoff of the United States.
- China's private equity by investment target is mainly divided into: private equity securities investment funds, also known as sunshine private equity (invested in stocks, such as Azixinxin, Wudang Asset, Zhongxin Private Equity Alliance, Xingshi and other asset management companies) after sunshine, private equity Real estate investment funds (such as Xinghao Investment), private equity investment funds (that is, PE, investing in equity of non-listed companies, for IPO purposes, such as Dinghui, Hony, KKR, Goldman Sachs, Carlyle, Hanhong), private equity venture capital Funds (that is, VCs with high risks, such as Lenovo Investment, SoftBank, IDG)
- Public equity funds such as Dacheng, Harvest, Huaxia and other fund companies are securities investment funds. They can only invest in stocks or bonds, they cannot invest in non-listed company equity, they cannot invest in real estate, they cannot invest in risky enterprises, and private equity funds can.
Private Equity National Law
- According to the special governance regulations of the Ministry of Public Security and the judicial interpretation of the Supreme People's Court, the differences between entrusted wealth management in the form of private placement and illegal fundraising are marked as follows:
- The method of fund raising is for the general public or specific individuals. If the method of raising funds is for the general public, it will be circled as illegal fund raising.
- Whether the target fund-raising target is more than 50 people. If the number of fund-raising objects exceeds 50, it will be circled as illegal fund-raising.
- Whether there is a change in the relationship between the owner of the funds (ownership) when entrusting financial management. If funds are transferred from the client's account to the trustee's account, it is determined that illegal fund-raising has occurred.
Private placement rumors
- "Headless" rumors recommended stocks seem to be justified
- Attentive investors may have discovered that such a hot post Inside Rumors and Internal References of Private Equity Funds is circulating on many financial websites and forums. It is different from a simple flag limit recommendation, but instead The company's "inside information" set out to attract investors' attention to this company.
- Hot posts are posted every day for nearly three years. No one knows where it really comes from, and no one knows where its news comes from. We first discovered it in a blog on a well-known financial website in 2007, but at that time the A-share market was in a big bull market, and it was not surprising that its recommendations were accurate, so it did not receive much attention from investors.
- However, over time, we have found that investors following this post are increasing.
- Yesterday, we searched Baidu for more than 53,000 news about "private equity rumors". Financial websites such as CICC Online, Hexun and China Securities Network, forums and communication groups as small as general websites, and some local newspapers are often reprinted.
- Why do such unfounded posts attract such widespread attention from investors?
- According to our understanding, on the one hand, because such posts are free, including them in "services" instead of "transactions" eliminates investors' vigilance; on the other hand, what is claimed in the posts is mostly restructuring of listed companies, Sensitive information such as business improvement and capital inflows are sound and reasonable on the surface, and are close to the company's news and fundamentals. Compared to those "amplifying the volume", the only way to recommend stocks is to say "I will go up and down" Institutionally, investors are more willing to accept such recommendations.
- Most recommended stocks are trending "good"
- More importantly, although this is just a recommendation from unknown sources, the message in the post will also be marked with "ambiguous", "rumor" and other vague words in the front. "Betting", and the recommended stocks often perform well in the secondary market.
Private Equity Development Status
- In 2012, the downward pressure on the global economy has increased, and the private equity investment industry will face tremendous pressure to withdraw and return. China's VC / PE industry will enter a period of in-depth adjustment. The industry's "shuffle" will accelerate. PE institutions that have not reached the expected returns will be at a disadvantage in the market competition. Fundraising and investment are facing challenges, and they may even be eliminated. And mature institutions with high professional standards and completed fundraising in advance will better respond to industry adjustments, and investment strategies and competition patterns will face changes.