Introduction -- Literature Review -- Choice of the Issuing Firm and Its Controlling Shareholder -- Determinants of Private Placement Discount -- Announcement Effect -- Long-term Performance of Private Placements in China -- Conclusion: from the Perspective of Interest Parties.

Private Equity investors exiting on the Chinese “A Share” markets in Shanghai and Shenzhen are subject to a compulsory 12-month lock-up, during which the sale of shares is prohibited. While this regulation aims to limit speculative investments in pre-IPO companies, it exposes private equity...