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Private placement stock pricing in Chinese stock market

  • Xu Zhaoyu*
  • , An Shi
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We consider the problem of stock pricing in private placement in Chinese stock market. Inherent value and price discount are two critical factors that determine the stock price in private placement. Inherent value of stock is the basis of price and trade restriction result in price discount.This paper develops a pricing model for private placement in China. We introduce residual income method into our pricing model to estimate the inherent value of stock. Monte Carlo method is adopted to simulate the price discount in private placement. And result of empirical analysis shows that our model can effectively estimate the stock price in private placement in China.

Original languageEnglish
Title of host publicationProceedings - 2009 International Conference on Electronic Commerce and Business Intelligence, ECBI 2009
Pages353-356
Number of pages4
DOIs
StatePublished - 2009
Externally publishedYes
Event2009 International Conference on Electronic Commerce and Business Intelligence, ECBI 2009 - Beijing, China
Duration: 6 Jun 20097 Jun 2009

Publication series

NameProceedings - 2009 International Conference on Electronic Commerce and Business Intelligence, ECBI 2009

Conference

Conference2009 International Conference on Electronic Commerce and Business Intelligence, ECBI 2009
Country/TerritoryChina
CityBeijing
Period6/06/097/06/09

Keywords

  • Inherent value
  • Price discount
  • Private placement
  • Stock pricing

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