Since the beginning of this year, private placement has become increasingly prominent as the main financing channel for listed companies, and there are clear signs of market recovery. According to data from Wind Information, as of now, a total of 45 listed companies have raised 139.19 billion yuan through private placements, a year-on-year increase of 83.68%, accounting for 79.69% of the total financing of listed companies during the same period. Experts interviewed by reporters stated that the significant recovery of the A-share private placement market since the beginning of this year is mainly influenced by four factors: policy dividends, changes in market environment, investor preferences, and industry integration needs. In addition, the increase in cases of billion yuan level private placement companies has also boosted the overall size of the private placement market this year. Looking ahead to the future, the demand for private growth in new energy and energy storage, semiconductors and electronic components, military and aerospace, pharmaceuticals and biotechnology, and financial services may continue to grow. This is the result of policy support, technological iteration requirements, market demand demonstrations, and international competition needs. The private placement market has shown four major trends. Since the beginning of this year, while the scale of private placement has significantly increased, the following trends have emerged. One is the increase in large-scale private placement projects. Data shows that among the 45 private placement projects this year, 4 have raised funds exceeding 10 billion yuan, namely Guolian Minsheng Securities Co., Ltd.'s private placement project (29.492 billion yuan), AVIC Chengfei Co., Ltd.'s private placement project (17.439 billion yuan), China Nuclear Power Co., Ltd.'s private placement project (14 billion yuan), and Guotai Haitong Securities Co., Ltd.'s private placement project (10 billion yuan), while in 2024 there was only 1 private placement project worth 10 billion yuan. This not only increased the total scale of private placement within the year, but also raised the average private placement financing for individual projects to 3.499 billion yuan, setting a new historical high. The second trend is the concentration of industry distribution. Data shows that the manufacturing industry leads with a private placement scale of 50.903 billion yuan, accounting for 36.59%. The financial industry (RMB 12 billion), transportation, warehousing and postal industry (RMB 8.203 billion), and electricity, heat, gas and water production and supply industry (RMB 7 billion) followed closely behind. The trend of economic structural adjustment and industrial upgrading is gradually emerging. Data shows that among the 45 companies mentioned above, listed companies from the power equipment, electronics, defense and military industry, basic chemical industry, and non-ferrous metal industry have shown high enthusiasm for participation, with 4 companies in each field raising funds through private placements. This distribution feature strongly reflects the strong demand for capital in related industries, as well as the trend of actively seeking change and accelerating development in the process of economic structural adjustment and industrial upgrading. Fourthly, the participation enthusiasm of state-owned listed companies has increased. Data shows that among the 45 companies mentioned above, there are 19 state-owned listed companies, accounting for 42.22%, an increase of 19.15 percentage points compared to the same period last year. From the perspective of the purpose of the funds raised by relevant companies, they are mainly used for project financing. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated in an interview with reporters that the future prospects of the private placement market are optimistic, and policies will continue to support the flow of funds to strategic emerging industries, promoting economic structural adjustment and industrial upgrading. At the same time, the investor structure will also be optimized, and long-term capital inflows will enhance market activity and standardization. Multi factor support for market recovery and private placement has always been an important means for listed companies to implement mergers and acquisitions, playing an irreplaceable role in shortening the integration cycle of mergers and acquisitions and helping enterprises achieve leapfrog development. In September 2024, the China Securities Regulatory Commission issued the "Opinions on Deepening the Market Reform of Mergers and Acquisitions of Listed Companies"; Subsequently, in January 2025, the Central Financial Office and six other ministries jointly issued the "Implementation Plan for Promoting Medium - and Long Term Capital Market Entry", breaking the traditional investment boundaries and allowing public funds to participate in pricing based private placements as strategic investors... This series of measures has greatly enhanced market confidence in the development of private placement business and effectively promoted the expansion of the private placement market. From the perspective of enterprises, private placement is also a cost-effective fundraising approach. Firstly, compared to public issuance, targeted issuance has obvious advantages in terms of financial qualifications, issuance discounts, acceptance time, and issuance fees. Its subscription method is more flexible, and in addition to cash, it can also be assets or bonds. Taking issuance costs as an example, compared to public issuance and convertible bonds, the issuance cost ratio of targeted issuance is lower. Data shows that since 2010, the average issuance cost ratio for private placements has been 2.69%, while the average for public placements is 3.95%. Tian Lihui told reporters that targeted issuance can help companies quickly obtain large amounts of funds without causing too much impact on the secondary market. Meanwhile, private placement projects often have high discount rates, attracting institutional investors and long-term capital to participate. Especially for private placement projects worth billions of yuan, they usually have strong strategic significance and are easy to attract the attention of large capital. Secondly, the raised funds are widely used to provide financial support for the diversified development and competitiveness enhancement of enterprises. Among the 45 companies mentioned above, 6 will raise funds to supplement working capital, 6 will be used for supporting financing, 9 will be used for financing the acquisition of other assets, and 24 will be used for project financing. Yu Fenghui, a senior researcher at Pangu Think Tank (Beijing) Information Consulting Co., Ltd., told reporters that private placement provides sufficient financial support for listed companies in areas such as technology research and development, capacity expansion, mergers and acquisitions, thereby enhancing their core competitiveness. Through private placement financing, enterprises can concentrate their resources on high growth and high value-added areas, promoting the optimization of industrial structure. (New Society)