Case Study On The Spin-off And Listing Of Domestic Enterprises

With the rapid development of the socialist market economy with Chinese characteristics and the increasingly fierce market competition,many enterprises have adopted diversified business strategies in order to reduce risks,enhance competitive advantages and win more market shares.In order to accelerate the pace of development,listed companies need to constantly explore new businesses and fields,and they often need the group or parent company to provide long-term and sustained financial support.Therefore,in order to maximize the value of the parent company and promote its long-term development,some new businesses and subsidiaries that are not closely related to the core business of the parent company are separated and listed independently,so as to better realize "secondary financing and value-added".Most research and innovation companies show great enthusiasm,and with the establishment of the science and Innovation Board and the implementation of the spin-off policy in the Regulations on the Pilot Domestic Listing of Listed Companies to Spin-off Their Subsidiaries,domestic spin-off has become a hot topic.Mixed-ownership reform has become a milestone in the development of China’s state-owned enterprises since 2015,with a number of state-owned enterprises of consider able scale taking action to roll out a mixed-ownership development strategy.On June 30,2022,the Three-year Action Plan for the Reform of State-owned Enterprises(2020-2022)(hereinafter referred to as the Three-year Plan)was approved,marking the further clarification of the objectives,timetable and road map of the reform of state-owned enterprises.Along with the three-year Plan and related "pilot" policies,the reform of state-owned enterprises will be further accelerated.From scale to quality will enter a new stage,under the support of the policy,spin-off listing will continue to be sought after.However,under the new financing mode,whether the behavior of state-owned enterprises planning spin-off listing can bring positive effects to the parent company or subsidiaries,whether it can achieve the expected economic benefits,whether it can continue to play a role in China’s capital market,and bring continuous benefits to investors,these are the key issues to be solved urgently.In the context of mixed ownership reform,this paper chooses a typical case of spin-off of high-speed railway electric to listing on the Science and Technology Innovation board as the research object.Through case study,literature study and event study,this paper deeply explores the reasons,processes and evolution of implementation strategies of spin-off and listing of the case objects.In order to more comprehensively analyze from the perspective of value release,economic activities and management activities,and get a comprehensive evaluation of the effect and significant changes brought by the spin-off listing to the parent-subsidiary company.Through research,it is found that the listing of High-Speed Railway Electric has a positive effect on the capital market of the parent company China Railway in a short period of time,and obtained excess earnings.In the long run,due to the characteristics of the industry,the overall operation capacity and turnover capacity are constantly enhanced,but there is a slight gap between them and comparable companies.There is still room for improvement in the future,but good performance has been achieved in financing efficiency,investment efficiency and operating efficiency,and the overall stable trend is good.After comprehensive analysis,this paper summarizes the study results of this case,including that the internal development needs of enterprises are the main driving force of spin-off listing,spin-off listing can help subsidiaries find and improve value,and high-speed Railway Electric has improved the operation efficiency of enterprises through spin-off listing.Finally,the enlightenment obtained in the course of case analysis is summarized.