Research On The Motivation And Performance Of Sunac China’s Spin-off And Listing Of Sunac Services

Spin-off listing is a shrinking asset reorganization method.Specifically,it means that the parent company spins off its subsidiaries operating a certain business segment and lists them independently.It can not only reduce the negative synergy effect of the parent company due to diversified operation,but also improve the management efficiency,optimize the allocation of internal resources,and promote the professional operation of the parent and subsidiary companies.Spin-off listing originated in the 1980 s,and gradually set off a boom in western developed countries,while my country’s spin-off listing started relatively late,until 2000,when Tongrentang shares spun off Tongrentang Technology to the Hong Kong Stock Exchange.The listing was the beginning of my country’s spin-off and listing.In 2004,the my country Securities Regulatory Commission issued a policy for the first time to regulate the behavior of domestic companies to spin off subsidiaries for overseas listing,but it has not mentioned domestic listing.It was not until December 2019 that the my country Securities Regulatory Commission issued relevant policies to provide guidance and regulations for the spin-off of subsidiaries to domestic listing.With the continuous improvement of my country’s spin-off and listing policy,the regulatory authorities’ attitude towards spin-off and listing has gradually eased.In the future,more companies in my country will choose spin-off and listing.It can be seen that it is necessary to study the spin-off and listing.Due to the imperfect capital market in my country,the rise of spin-off listing is late and still in the stage of exploration and trial,and there is a lack of typical cases,so that domestic scholars still have certain limitations in academic research on spin-off listing.Domestic scholars have not only done little research on the path of spin-off and listing,but most of them only start from the perspective of the parent company or subsidiary when they study the motivation and performance of spin-off and listing.Few scholars also study the motivation for spin-off and listing of parent and subsidiary companies and performance,and the research on the reasons for performance changes is relatively weak.This article selects Sunac China’s spin-off and listing of Sunac Services as a case.In the case,the parent company Sunac China,as a leading enterprise in the domestic real estate industry,successfully spun off its property subsidiary Sunac Services to HKEx on November 19,2020 After being listed on the stock market,the market value of the subsidiaries has increased significantly after the spin-off and listing,and the financial performance of the parent and subsidiary companies has been improved to a certain extent.The spin-off and listing are typical.Through in-depth analysis of the path selection of Sunac China’s spin-off and listing of Sunac Services,this thesis studies the motivation and performance of spin-off and listing from the dual perspective of parent and subsidiary,and further explores the reasons for performance changes,which not only enriches the theory of spin-off and listing,but also helps It can provide reference for other enterprises in my country that are preparing to spin off and go public.This thesis mainly includes the following five parts.The first part is an introduction and a theoretical overview.This part firstly describes the research background and significance of this thesis,sorts out the research results of the academic community on the motivation,path selection and performance impact of spin-off and listing,and introduces the research ideas,research methods and overall framework of this thesis;concept,expounds the mode of spin-off and listing,and introduces the motivation and existing spin-off and listing paths of most companies at present..The second part is the case introduction.First,it introduces the basic situation of the two main entities of Sunac China and Sunac Services.Secondly,it describes the background of Sunac China’s spin-off and listing of Sunac Services;The process includes the establishment of the red chip structure in the early stage,the preparations for the capital restructuring,and the introduction of cornerstone investors in the later stage,and the global public offering.The path choice of creating services to market is analyzed.The third part is the analysis of the motivation of Sunac China’s spin-off and listing of Sunac Services.This part mainly analyzes the motivations for the spin-off and listing from the perspectives of parent and subsidiary companies.Among them,the motivations at the parent company level mainly include relieving capital pressure and implementing core strategies,and the motivations at the subsidiary level mainly include obtaining higher valuations,broadening financing channels,Expand market share and enhance management incentives.The fourth part is the performance analysis of Sunac China’s spin-off and listing of Sunac Services.First,the short-term market reaction of the parent company and the long-term market performance of the parent and subsidiary companies were analyzed using the event research method,market capitalization and price-earnings ratio indicators,respectively.The market value of Sunac Services has not been positively affected by Sunac China’s long-term market performance;secondly,the financial performance of the parent and subsidiary companies is analyzed using the financial indicator analysis method.Finally,it further discusses the reasons why the spin-off and listing have a positive impact on the performance of parent and subsidiary companies.The fifth part is the research conclusions and suggestions.First of all,according to the case analysis,the research conclusions of this thesis are drawn: firstly,alleviating the financial pressure is the main reason for the spin-off and listing of the parent company;The spin-off listing has improved Sunac China’s solvency and growth capability;fourth,the spin-off listing has improved the market performance and financial performance of Sunac Services.Secondly,corresponding suggestions are put forward: first,the company should rationally split and go public based on its own development strategy;second,the company should choose an appropriate path based on its own actual situation;third,the company should strengthen follow-up management and promote Long-term and healthy development;Fourth,regulatory authorities should improve relevant systems to meet the needs of spin-off and listing.