Research On The Motivation And Performance Of Property Spin-off Listing

As a common means in the international capital market in recent years,spin-off has been very mature in foreign countries,but it has gradually attracted attention in China since 2000.However,after more than 20 years of rapid development,China’s real estate industry has entered the stock market,and the industry is almost saturated,with slow growth.The country has continuously introduced policies to restrict financing,and the golden age of the real estate industry has gradually faded away.Under the circumstances,real estate enterprises are seeking new economic growth points,and trying to achieve financing,improve operations,change development strategies and other purposes by spin-off listing.In 2018 and 2020,the housing market ushered in the outbreak of two spin-off listing,but should enterprises be spin-off listing? What impact will the spin-off have on the enterprise? In view of these problems,this thesis comprehensively analyzes and evaluates the performance of the company after the spin-off listing,in order to provide reference experience for other enterprises.In this thesis,we choose Poly Development to split Poly Property as the object of case study.Firstly,this thesis summarizes the domestic and foreign research on spin-off listing,defines the related concepts and types of spin-off listing,and elaborates the related theories.Then,combining with the current development of China’s property management industry and the background and necessity of property companies’ spin-off,the thesis innovatively analyzes the influence mechanism of property companies’ spin-off and performance.According to the situation of Poly Property,it is found that the main reasons for its spin-off listing can include improving financing capabilities and broadening financing channels;reducing information asymmetry and enhancing corporate value;improving strategic layout and enhancing core competitiveness;optimizing governance structure and enhancing management incentives.Then,the sample enterprises and case enterprises listed by A+H-share housing companies are selected to analyze the market effect of the spin-off listing,and it is found that the spin-off listing can indeed bring positive excess returns to enterprises.It also analyzes the EVA of the parent subsidiary and the financial performance and non-financial performance of Poly Property after the spin-off and listing.Through the analysis,it is found that the spin-off listing did not improve the economic added value of the parent company and the subsidiary company.After the spin-off listing,Poly Property’s debt-paying ability was greatly improved,but it did not significantly improve the profitability and growth ability of the enterprise,and its operating ability dropped significantly.However,from the perspective of non-financial indicators,Poly Property has optimized its governance structure,enhanced management incentives and improved its strategic layout.Finally,the overall conclusion of this study is drawn,and suggestions are put forward from the company level and supervision level,in order to provide experience for other property listed companies.The thesis has 21 figures,32 tables,and 61 references.