Analysis The Influence Of Liaoning Chengda Corporation Splitting Chengda Biotechnology To List In National Equities Exchange And Quotations

Because of the list requirements of National Equities Exchange and Quotations are relatively loose than the Mainboard, lots of public companies due to the aims like expanding financing channels, resisting hostile takeover, increasing firm competitiveness,gaining the maximized profit and some others change the listing of subsidiary corporation in Mainboard to National Equities Exchange and Quotations. Under the background of the explosion and increasingly strictness of the amount of public companies that split their subsidiary corporations to list in National Equities Exchange and Quotations, it is more significant to research the impact on the aspects of profits,financing and values of the parent and subsidiary companies in the future.This essay started from the case that Liaoning Chengda Corporation splits its subsidiary corporation called Chengda Biotechnology to list in National Equities Exchange and Quotations's process, transactions, troubles and the shortages of the market, then profoundly analyzed the impactions on the debt repayment ability, operation capacity, profitability, development ability and the influences in the same industry.Finally we get the conclusion that the public companies make the decision of splitting the subsidiary companies according to the policies will bring the subsidiaries professional management and financing convenience, also take the public companies promotions in the financing, so that realizing the goal of optimization of resource allocation and double win. On the other side, this action may also bring the public corporations some hidden dangers like the decreasing of anti-risk capacity and relevant transactions.In the benefits from the splitting to list in National Equities Exchange and Quotationsgeneral are larger than the losses. It will promote the financing and professional development. However the market also exist some problems. In the end, we give some suggestions towards the supervision department and the splitting for the public companies like we should pay attention to the timeliness of the policies, improve the transaction methods,strict the related transactions and attract the investors' interests.