Abstract: China's policies regarding private equity placements have undergone a number of revisions in recent years. We find that there is a clear tendency to different types of private equity placements by the statistical analysis on revision:for those who do not meet the direction of policy orientation, approval time is relatively long. This paper defines this financial management method together with the validity period of the approval document as the operation time management of the private placement policy, and discusses the influence of this management method on the issuance discount by combining the price formation mechanism of the private equity placements and the value theory of the option. It is found that the policy running time of listed companies has a significant positive impact on the issuance price-discounts, which leads to two levels of paradox:bringing the reverse incentive for the issue object at the micro level; exacerbating the high issue-discount problem of private equity placements at the macro level. The conclusion can provide a reference for improving the scientific financial management.

Key words: financial management, private equity placements, pricing method, policy run time, paradox