The issue of how to choose a reasonable financing method to maximize firm valuation has been the focus of academic and practical fields。Foreign scholars examined the issue from different perspectives，and found many significant conclusions，they formed some systematic theories。For the particularity of China’s security market，foreign scholars rarely involved in the research of private issue of public equity of listed firms in China。Private issue of public equity of China’s listed companies follows the split share structure reform。Domestic scholars examine the regulation and issue condition of private issue of public equity。However，they do not make systematic theoretical or empirial studies。In order to understand the widespread private issue of public equity in China’s listed companies in-depth，and expand the theoretical studies of private issue of public equity，this book examines the private issue of public equity of China’s listed companies theoretically and empirically。This book thus provides theory basis for re-financing policies of Chinese security supervision department and provides a new enlightening for China’s listed companies to better design financing plan of private issue of public equity。The conclusions of this book are as follows：
（1）Private issue of public equity is the best re-financing method for China’s listed companies。Through comparison between different financing policies such as rights issues，seasoned equity offering and private issue of public equity，this book finds that the issue criteria of private issue of public equity is easy to reach，and this financing method helps to solve the asymmetric information problem in new share issue。Thus China’s listed companies should firstly choose private issue of public equity when equity re-financing is needed，seasoned equity offering is the second choice，and the last is rights issues。In addition，this book examines the choice of the three financing methods，and provides full support for the theoretic analysis from the univariarate test and the multivariate regression analysis。
This book compares private issue of public equity of China’s listed companies and convertible bond financing。And finds that China’s listed companies choose private issue of public equity better than convertible bond financing，which is different from the choice in Amercian or European securities market。
（2）The announcement abnormal returns of private issue of public equity to related investors are higher than those of private issue of public equity to non-related investors。This book argues that，with asymmetric information，related investors have much more information on listed companies than non-related investors。If related investors are willing to subscribe new shares issued by the listed company，it implies that the listed company has profit projects or high growth in the future。This conveys a much better signal to the security market。Thus，the announcement abnormal returns of private issue of public equity to related investors are higher than those of private issue of public equity to non-related investors。Both the univariarate test and the multivariate regression analysis provide full support for the theoretic analysis。
（3）The issuing object of private issue of public equity has much impact on the discount rate of private issue of public equity。The discount rate of private issue of public equity to controlling shareholders and related investors is lower than that of private issue of public equity to non-controlling shareholders and related investors。This book examines the determinants of the discount rate of private issue of public equity by listed companies in China’s security market。Both univariarate test and the multivariate regression analysis provide full support for the theoretic analysis。
（4）The lower the discount rate of private issue of public equity is，the higher the investors’cumulative abnormal returns are。This book argues that，with asymmetric information，when institutional investors are willing to subscribe the shares of private issue of public equity at a lower discount rate，it indicates that the listed company has well-profit projects or a promised growth in the future。This will convey a positive signal to the security market。Therefore，private issue of public equity with a lower issuing discount rate has higher announcement abnormal returns，and vice versa。This book examines the relationship between the discount rate and the cumulative abnormal returns，and provides full support for the theoretic analysis。
（5）The empirical results of this book suggest that private issue of public equity should be encouraged in China’s listed companies。In order to promote the private issue of public equity in China，the author suggests that the monitoring on the process of private issue of public equity and the supervision over the pricing of private issue of public equity should be strengthened。
This book is divided into nine chapters。Chapter 1 is Introduction，which summarizes the purpose and significance of the study，related concepts，the problems in further study，the study methods，the framework of the book and innovations。Chapter 2 is General theories of company financing，which introduces scholars at home and abroad’s relevant theories about choosing debt financing or equity financing by now。Chapter 3 is The status and characteristics of private issue of public equity of China’s listed companies，which introduces the policies of private issue of public equity of China’s listed companies and those companies’characteristics。Chapter 4 is Experience and enlightenment of private issue of public equity of foreign companies，which introduces the Experience of the United States and other
countries who have mature securities market。Chapter 5 is The choice of re-financing methods：theoretical and empirical study，which expounds the reason why China’s listed companies choose private issue of public equity from both theoretical and empirical aspects。Chapter 6 is The relationship between category for investors and the stock price of the private-issue-of-public-equity company：theoretical and empirical study，which analyses the relationship between category for investors and the stock price of the private-issue-of-public-equity company from both theoretical and empirical aspects。Chapter 7 is The relationship between issuing discount rate of private issue of public equity and company’s short-term price：theoretical and empirical study，which analyses the main factors impacting discount rate from both theoretical and empirical aspects，and the relationship between issuing discount rate of private issue of public equity and company’s short-term price。Chapter 8 is The choice of private issue of public equity and convertible bond financing：theoretical and empirical study，which expounds the reason why China’s listed companies choose private issue of public equity，but not convertible bond financing，and examines it using data from china’s security market。Chapter 9 is Study conclusions and policy suggestions，which Summarized the book and make relevant policy suggestions。
Keywords：listed companies private issue of public equity investor category issuing discount rate
