A Case Study Of China Merchants Shekou’s Spin-off China Merchants Property Management Listing

Today,with increasingly fierce competition,companies need to constantly change their financing and business models in order to adapt to market changes.Spin-off and listing,as a reorganization method of asset contraction,has attracted more and more attention from the capital market.Since the listing of Color Life Service Group in Hong Kong in 2014,real estate companies have started a wave of spin-off and listing of the property sector.From 2014 to 2019,a total of 17 property companies spun off by real estate companies were listed in Hong Kong.In this context,China Merchants Shekou will spin-off the company’s property.This article takes the event of China Merchants Shekou’s spin-off and listing of China Merchants Property as the research object,and mainly uses case analysis and event research methods to study the case.The article first introduces the main companies in the case,China Merchants Shekou,China Merchants Property Management,and AVIC SUNDA,and also introduces the real estate industry and property management industry related to these three companies.Then the article elaborates on the specific process of China Merchants Property Management’s spin-off and listing,and analyze the motivation,path,effect and potential risk of it.The biggest feature of China Merchants Property Management’s spin-off and listing lies in its path selection: China Merchants Shekou,a listed company,acquired a 22.35% stake in AVIC SUNDA,another listed company,and AVIC SUNDA purchased a 100% stake in China Merchants Property Management.In this way,China Merchants Property Management completed the spin-off and listing.The reasons for choosing the listing plan can be summarized into two points: one is the difficulty in listing A shares,and the other is that AVIC SUNDA is large in size and its main business is the same as the property management service of China Merchants Property Management.Regarding the effect of the spin-off and listing,this article analyzes the effects of the capital market,financial performance and non-financial indicators.Finally,the article puts forward three points of enlightenment regarding the spin-off of listed companies’ sub-sectors and listings.First,spin-off and listing is to assist the company’s long-term strategic planning.Second,backdoor listing after spin-off may make the whole group obtain higher benefits.Third,close to the market demand can ensure the long-term development of the subsidiary after the spin-off.China Merchants Shekou has avoided some compliance risks by choosing a unique spinoff and listing path,shortened the time to market,and completed the spin-off and listing of China Merchants Property Management in A shares.This can provide new ideas for other companies that intend to spin off and list on the A-share market.This article analyzes the case of China Merchants Shekou’s spin-off and listing of China Merchants Property Management,and summarizes the successful experience of this spin-off and listing,hoping to provide a reference for similar companies in the future spin-off and listing.