1. Fixed increase is called private placement, which means non-public offering, that is, offering to specific investors. Actually, it is a common overseas private placement, which has existed in China stock market for a long time. However, as a new policy initiated under the two major backgrounds of the formal implementation of the new Securities Law and the full circulation of shares after the share reform, today's non-public offering has undergone a qualitative change compared with the previous private placement. Private placement plays a significant role in improving corporate profitability and corporate governance. Only by looking for more companies with the possibility of private placement and carefully analyzing the relevant schemes and motives can we have the opportunity to explore new investment themes in the era of full circulation.

2. The object of private placement is generally the shareholders of the company. Non-public offering will also become an important means and booster for stock market mergers and acquisitions. There are two situations here: one is that large investors (such as foreign investors) want to become strategic shareholders or even controlling shareholders of listed companies. In the past, there was no private placement, so we could only buy shares from major shareholders (for example, Morgan Stanley and IFC jointly acquired shares of Conch 14.33%), and the money from new shareholders went into the pockets of major shareholders, which had little direct effect on the growth of listed companies. I believe that as long as a few enterprises take the lead, the whole market will be greatly active and create colorful new concepts and themes. The other is to acquire others through private financing and expand the scale rapidly.

3. The reason why private placement is sought after by listed companies and investors is that private placement is completely market-oriented. Analysts pointed out that the implementation of private placement, because there is an issue price as a guarantee, will block the space for stock prices to fall. At the same time, for the success of private placement, listed companies also have the motivation to do well, which has also become the biggest driving force for the stock price to rise. G Zongchao was issued privately to no more than 10 institutional investors, but in the end only 7 fund companies and 1 0 insurance companies were qualified to subscribe, especially E Fund Management Company, which subscribed for 27.99% of 46.44 million shares, showing the enthusiasm of subscription, which also created favorable conditions for Lightning to complete the first refinancing order.