With the reference of the prospectus of The Peoples Insurance Company (Group) of China Limited (PIC) in 2012, the

method of finance used by PIC is a type of equity financing of Initial public stock offering in Hong Kong as part of the Global Offering. Equity financing is a strategy to obtain capital which included selling some part of interest of the company to the investors. Global offering is simultaneous offering the stock in multiple markets. It is an international sell of its stocks and at the same time, they become available in markets across the globe. Initial Public Offering is a company sells its stock to the public in Hong Kong at the first time.

The method of equity financing can obtaining funds by issuing stock or shares and the company can obtain the best interest to issue shares at a time when the shock market price is the highest. The investors in Hong Kong can apply for the shares of PIC under the Public Offering and they can take the form of stock in the company and become the partners and the part-owners in the business and can exercise some degree of control over the company run. As a result, they will expect to earn higher return for their investment or recover their investment to sell the stock at a higher value later and it is a long-term success and profitability of the company. The International Offering is a Global Offering will involve selective marketing of the shares to QIBS in the United States in reliance on rule 144A. To sell the shocks on the public need to listing of equity securities on the Main Board or GEM of HKEX which the company needs to provide all the information and documents and obey all the HKEX rules and requirement and there must be a sponsor. For a global IPO, there must be global coordinator and other working parities include book runner and lead manager and underwrites and legal adviser. The number of shares offering may be subject to reallocation for he pricing and allocation and it is fixed by agreement between the Global Coordination.

As we know, public stock offering entail expensive and lengthy registration process but it can account for more than 20 % of the amount of raise of capital. Hence, initial public stock offering is a better option to mature companies than companies who are just startup. Companies interested in working the IPO have to prepare formal business plans which include complete financial projections. The entrepreneurs have to sell their ideas to investors and their careful planning should help convincing potential investors that they are a competent manager and they are the best of the competition. Entrepreneurs interested in obtaining equity financing must prepare a formal business plan, including complete financial projections. Like other forms of financing, equity financing requires an entrepreneur to sell his or her ideas to people who have money to invest. Careful planning can help convince potential investors that the entrepreneur is a competent manager who will have an advantage over the competition. Overall, equity financing can be an attractive option for many small businesses. But experts suggest that the best strategy is to combine equity financing with other types, including the entrepreneur's own funds and debt financing, in order to spread the business's risks and ensure that enough options will be available for later financing needs. Entrepreneurs must approach equity financing cautiously in order to remain the main beneficiaries of their own hard work and long-term business growth. There are advantages and disadvantages of Equity Financing of IPO. Firstly, the advantage of equity financing is when the liquidation is happened, the equity financers can be paid in the last and the valuables and property are remained. When the bankruptcy and they also no need to pay and the properties and assets of the company is not need to be pledged to obtain the investment of equity. Therefore, it helps for boasting the rating of credit of the company and less debt but more the equity. Secondly, company can be protected by the equity financing in the economic depression because the profits and loss are shared by the investors. Thirdly, the credit rating of the company will be improved and give a good impression for the investors and obtain sufficient fund and capital for the company. Forty, the performance of the business of the company will be better for the ever-watching investors will keep the company management on their toes to do their best. Fifty, the corporate governance of the company will be better and instills professionalism because the public listed company need to hold regular general body and director meetings,

because the public listed company need to hold regular general body and director meetings, audit the accounts, maintain impeccable records and follow other standard practices. Sixty, it is easy for the company to quit without closing down the business and offload it holdings to any other interested investor. The investors can recoup their investment at will. However equity financing have some disadvantages. Firstly, in the equity financing, the managerial powers and the ownership are be shared which affect their control over the business. There will be different ideas sharing to create problem and the decision making powers will be loss because all shareholders of the company have a say in the electing the board of director. All major investments require the majority of shareholders to approve. Secondary, there have chance of loss of the company control because the investors acquire more than 51 % of company shares and they can take control the company and for the promoter out when the promoter cannot match the investments. Thirdly, there are many strict rules and regulations for the public listing company such as filing reports and holding of meetings. The valuable time and energy and resources will be taken up by the increase of the standards of corporate governance. Forty, The outgo are higher for the investors when good economic time although the company profit and loss will be protected in the bad economic time. The promoter needs to forego of higher amount to repay the bank loan with interest. Fifty, the obligation will be long when the taking in investors are a permanent obligation. The investors can take their cut of profits and all the obligations will be end and the interest of the loan plus the loan will be repaid in full.