Performance Study Based On The Spin-off Of CNOOC And COSL

In 2014, the listing of our state-owned enterprises by spin-off has drawn wide public concern again. Sinopec split off the sales subsidiary, and in September 2014, successfully bringing in strategic investors, with a 29.99% stake in exchange for the financing amount as high as 107.094 billion yuan. Then Sinopec plans to achieve its spin-off listing in 2015. CGNPC, China Railway Construction Corporation, BAIC also started to spin off the listing business of their listing subsidiaries.Under the background of the reform of state-owned enterprises in the capital market in our country, our state-owned enterprises have to carry out national guidance, and promote the process of mixed ownership reform. For some monopoly state-owned enterprise group of diversification or integration, they can meet the financing needs of parent and subsidiary corporations by spin-off listing, thus can help those monopoly state-owned enterprises revitalize the stock of assets, improve the incentive mechanism, and clarify the equity structure. Therefore, spin-off listing is also an effective means of "value management".However, due to the situation that China’s current capital market is not perfect, rules and regulations about spin-off listing are also not standard, until 2010, the CSRC released six basic conditions as related specification for spin-off subsidiaries to list in the GEM, what’s more, the successful case of the spin-off listing relatively is few. Therefore, the state-owned enterprises in the process of spin off listing is likely to encounter a series of obstacles, especially focus on that if it can improve the performance by splitting the subsidiary and if can achieve the goals, and whether there is a problem such as related party transactions. Based on those conditions, this article will review and analyse the typical case of spin-off listing of our state-owned enterprises, and find the impact on corporate performance of spin-off listing in the finance market, to provide experience for those enterprises that intentionally plan to spin-off listed operation.In this paper, I use three methods:literature review, theoretical research and case analysis. The first chapter elaborates the background, the research question and the related idea. The second chapter reviews the points of view, and combines the related theory, and summarizes the mode of companies seek to spin-off listing by induction to the agent. The third chapter explores and analyse the change of the parent-subsidiary performance level of the spin-off listing, and designs the corresponding system, refines indicators, to reasonably assess their performance. The mode will include three latitudes:financial indicators, non-financial indicators and the capital market response analysis. The fourth chapter evaluates the performance of the split-off listing case, selecting the COSL as the case. The fifth chapter shows new ideas on the reform of mixed ownership combined with theoretical knowledge.This paper replenishes the research of combining theory and practice in our country, and enriches the capital operation methods of mixed ownership reform. For state-owned enterprises diversified, it can effectively achieve "value management" by means of spin-off listing.