Research On The Performance Of Wesson Holding Returning To Domestic Spin-Off Listing

With the continuous improvement of the national economy,many companies set up subsidiaries,restructure and merge in order to expand the business scale,but there are also a lot of problems,such as limited financing,low management efficiency,core business is not outstanding and so on.In order to solve the problems mentioned above,spin-off listing enters the capital market as a new mode of capital operation.In order to further standardize the operation of the capital market and enhance the core competitiveness of enterprises,the China Securities Regulatory Commission(CSRC)issued on December 13,2019 Several Provisions on the Pilot Domestic Listing of Listed Companies in the spin-off of Their Subsidiaries,so that enterprises listed on the main board of Hong Kong who want to return to the domestic spin-off listing can have relevant provisions as a reference,so as to improve the rules and regulations for the operation of the domestic capital market.Promote our economic market prosperity and development.At the same time,during the 14th Five-Year Plan period,China will focus on the construction of intelligent infrastructure such as transmission grid and charging pile.As the key undertaking units of State Grid and China Southern Power Grid,Wesson Holdings and Wesson Information must follow the trend of The Times to develop innovative research and development of new technologies.In this context,it is of profound research significance that Wesson Holdings chooses to spin off its Internet of Things business to be listed on the Chinese Science and Technology Innovation Board.However,whether the spin-off event has a positive impact on Wesson Holdings and Wesson information performance content is worthy of in-depth study in this paper.This paper takes Wesson Holdings’ return to the domestic market to spin off its subsidiary Wesson Information and list it on the Science and Technology Innovation Board as a case study,classifies the research status at home and abroad,sorts out the relevant basic concepts and theoretical basis,and makes an in-depth analysis of Wesson Holdings’ spin-off event.First of all,this paper summarizes the policies of the Stock Exchange and the Science and Technology Innovation Board of the Shanghai Stock Exchange for companies in Hong Kong to return to the mainland to list their spin-off subsidiaries,and makes a detailed analysis of the process and motivation of Wesson Holdings to return to the mainland to list its spin-off subsidiaries.Then,in the fourth part,the performance of Wesson Holdings before and after the split of Wesson information is analyzed in detail with the multi-angle and multi-factor analysis method.In the part of performance analysis based on capital market,the short term stock price changes and stock price effects of the split event are analyzed by using event study method.In the part of analysis based on financial indicators,by referring to the announcement of the case company,it is found that there is no significant impact on the change of financial data before and after the spin-off,so as to avoid the interference of other factors.Factor analysis method is used to build a performance evaluation system,analyze the horizontal and vertical financial performance of the parent-subsidiary company before and after the spin-off,and judge the spin-off effect by using the comprehensive score and ranking of common factors.Non-financial performance indicators are used to judge the development of parent-subsidiary companies before and after the separation.It is found that after the split,the relevant financial indicators of the enterprise also gradually improve,the capital market response is good,the financial performance needs to be improved,and the non-financial performance is excellent.Finally,based on the in-depth study and analysis of the case,three suggestions are given for the continuing operation of Wesson Holdings after the spin-off of Wesson Information,and enlightenment is proposed for future Hong Kong stock enterprises and regulators based on the spin-off and listing event.