The article explores the relationship between private placement discounts, investment identity, and securities market quotations in China. It discusses how the discounts on private placement stocks differ based on the type of investor and the issuing price. The research suggests that when private placement stocks are issued at the same price to different types of investors, there is no significant difference in discounts. This indicates that issuing stocks at lower prices can send negative signals to the market and may not be profitable for the first stockholder.