Research On The Motivation And Performance Of China Railway Construction’s Spin-off And China Railway Construction Heavy Industry’s Listing

With the establishment of the Science and Technology Innovation Committee and the promulgation of "Some Rules on Spin-off Pilot Programs for Subsidiaries of Domestic Listed Companies"(hereinafter referred to as "New Rules")in 2019,the Spin-off and listing-Capital management methods It attracts more and more domestic companies.Many companies are considering Spinning off key divisions or subsidiaries for a public listing.At present,the number of domestic spin-offs and listed companies is increasing year by year,and the related policies are becoming more and more clear.It is particularly important to examine the impact of Spin-off in some large corporations with many departments or branches.Within a week of the announcement of the new spin-off and listing rules,China Railway Construction Corporation Limited(“CRCC”)announced a proposed Spin-off for China Railway Construction Heavy Industry Group,Inc.(“CRCC”).Hereinafter referred to as "CRCC".)),It is also the first case of central enterprises splitting and listing,and it also encourages other enterprises that want to split and list to bring a good demonstration role.In this article,we will examine the motives and performance of the China Railway Construction Spin-off from the China Railway Construction list case,and try to provide more reference material to other Spin-off companies.In this paper,the combination of literature research and case analysis is used to analyze the research background and importance of spin-off listing in China,and then the related literature is combed systematically.Spin-off and Listing Motivations and Performance Analysis Examine and analyze specific company-specific spin-off and listing motivations in combination with Spin-off and specific company listing cases.From a performance research perspective,this paper combines event research methods to perform a statistical analysis of the parent company’s stock price fluctuations,examine the short-term performance that this event brings to the company,and then the specific performance of the subsidiary.Financial and non-financial metrics In this article,we analyze trends in the performance of subsidiaries after Spin-offs and IPOs.Finally,based on the findings of the case study,make appropriate recommendations.According to research,Spin-off listings for a parent company do not always generate incremental revenue in a short period of time and do not always increase the company’s market value over time.For a subsidiary,a spin-off listing will certainly provide a short-term performance improvement for the subsidiary.According to the results of the performance survey,the carve-out improves the subsidiary’s performance,optimizes the company’s governance structure,and boosts the company’s innovative ability and industry competitiveness.Company Spin-offs should be seen sensibly and appropriately in connection with one’s own company situation and future development strategies and not blindly choose Spin-offs based on short-term interests.Finally,the paper also includes some suggestions based on the conclusions,I’m hoping that the research in the paper will be useful to other companies that are planning to Spin off and publish.