A Case Study Of Listed Companies’ Carve-outs Of Subsidiary Companies

Listing is an important way for enterprises to raise funds in the securities market and realize their expansion and development.As we accelerate the new environment to promote innovation-driven development strategy,it is very important for the country to follow up related systems such as financial policies.Therefore,enterprises’ innovative development strategy implementation needs to match the corresponding capital operation.In December 2019,China Securities Regulatory Commission(CSRC)issued Several Regulations on the Pilot Domestic Listing of Listed Companies in the carve-outs of their Subsidiaries,pointing out that carve-outs is to better serve scientific and technological innovation and high-quality economic development,and open up new financing channels for enterprises’ innovative development.However,in both theory and practice,there are doubts such as increasing improper related transactions,damaging the interests of minority shareholders and generating financing arbitrage.As the new system of our capital market,the corresponding research and discussion are inadequate.How will the new system affect businesses?Can it produce the desired institutional effect?This is a problem worthy of attention and in-depth study,which has a strong practical significance for the study of the new separation system.In the past,the study of Chinese carve-outs is mainly compared with the whole listing,focusing on financing constraints,agency problems,valuation bias and economic consequences of parent companies.However,the research on carve-outs of listed companies is limited by empirical data and has not been fully developed.This paper holds that two relatively independent financing bodies are formed when listed companies split subsidiaries to go public,and the foundation of enterprise financing is resources.Through the understanding of the basic situation of the listed samples,it is found that the subsidiaries are mostly innovative resources cultivated by listed companies.Based on this,this paper chooses the method of case study to explore the development process of subsidiary resources and explore the role of carve-outs subsidiary listing from the perspective of innovative resource management.The internal equity financing of the micro subject itself is an important link of the enterprise strategic management.The case study can bring this capital operation activity into the systematic analysis of the strategy.At the same time,the carve-outs of subsidiaries by listed companies is A new thing in China’s A-share market,and the qualitative data analysis of case studies can form a more specific and realistic portrayal of it.In this paper,Hikvision,the leading enterprise in the innovation sector with the most prominent innovation resources,is selected as the typical case study object.Through studying the whole process and context of Hikvision(listed company)’s cultivation,development and carve-outs of Fluorite Network(innovation business subsidiary),the model of internal cultivation of innovation resources in listed companies is summarized.This paper analyzes the listing of listed companies by splitting subsidiaries from a new perspective.This paper tries to explain the rationality of the new separation system from a microcosmic perspective.This paper argues that,first of all,in the context of the implementation of national innovation and development strategy,further optimizing resource allocation,deepening mergers and acquisitions,realizing business focus,improving professional management level,so as to better serve scientific and technological innovation and high-quality economic development is an important purpose of this carve-outs system.Carve-outs is the leverage link of listed companies’ strategic management of innovation resources.Secondly,the new carve-outs system is quite different from the original carve-outs(partial),and it is not only to provide financing channels for listed corupanies.The new system provides important policy support for the capital operation of listed companies that implement innovative development strategy,such as Hikvision,and plays a leading and guaranteeing role of the system,and opens up new financing channels for the innovation and development of enterprises.It is of great significance to better serve scientific and technological innovation and high-quality economic development.