Research On The Economic Consequences Of The Spin-Off Of Cspc Group

With the continuous development of economic globalization,many enterprises choose a diversified development strategy in order to create benefits and maintain lasting competitiveness.Many companies adopt diversified business strategies for the following three reasons: first,diversified operations can reduce risks;second,the existing resources and advantages of enterprises can be fully utilized;third,companies can create new business profit growth Therefore,in order to better promote the diversified development,the company splits some businesses or subsidiaries into separate listings by reassessing assets.Spin-off and listing means that the parent company spins off the business or subsidiary from the parent company for an IPO to meet the strategic needs of the company.As a method of asset reorganization,the spin-off of listed companies is conducive for listed companies to open up high-quality assets to investors,which has promoted the growth of the capital market.Due to the immaturity of China's capital stock market and the scarcity of listing resources,the spin-off of listing in China has been slow.Until December 13,2019,the China Securities Regulatory Commission promulgated the "Several Provisions on the Pilot Pilots of Spin-off Subsidiaries of Listed Companies",which clarified the prerequisites for the spin-off pilots,standardized the spin-off listing process,and strengthened the spin-off and listing behavior.At this time,the promulgation of "Several Provisions" met market demand and filled the gap in the domestic spin-off system.Based on the existing literature and theories,this paper studies the case of the spin-off of CSPC Innovation by CSPC Group.This article first introduces the relevant theories of the spin-off and listing,and summarizes the relevant entry conditions and the listing transaction process.Secondly,this article analyzes in detail the process and motivation of CSPC Group's spin-off.Thirdly,based on the relevant literature and theoretical basis,this article conducts a comprehensive analysis of the economic consequences of the spin-off of CSPC Innovation by CSPC Group.Finally,this article summarizes the conclusions and enlightenments of the spin-off of CSPC Group.In general,the economic consequences of the spin-off of the parent and subsidiary companies will have a certain impact,with less impact on CSPC Group and greater impact on the subsidiary CSPC Innovation.And the text draws the following five points of enlightenment: first,choose high-quality business segments for spin-off;second,choose a suitable market for spin-off and listing;third,companies should pay attention to compliance issues during the spin-off and listing process;four The spin-off and listing will increase the value of the enterprise in the short term.However,due to the case studies in this article,there are not many cases of spin-offs in China,and sufficient evidence cannot be obtained for empirical research.Therefore,as more spin-off cases emerge in the future,empirical research and comparative analysis will be required to further demonstrate Findings of this article.