Study On The Motivation And Effect Of CRCC Equity Carve-outs Of CRCCE

In recent years,the capital operation market is becoming more and more perfect.Under such a change,the enterprise management mode has also undergone a corresponding transformation.With the gradual deepening of mixed ownership reform of state-owned enterprises,spin-off and listing stand out from many asset restructuring methods with its unique advantages and become the focus of all sectors of society.Based on the national economic development strategy and the enterprises' own operating conditions,some state-owned enterprises usually conduct spin-off and listing of their subsidiaries or sub-business segments,so as to meet the financing needs required by the parent company's operating activities,improve the enterprise's operating performance,improve the corporate governance structure and so on.Therefore,the current stage of spin-off listing has become a growing number of state-owned enterprises favor the "capital management" approach.However,due to the cumbersome approval procedures and long time required for domestic mainboard application for spin-off and listing,many enterprises usually prefer to apply for spin-off and listing abroad.China's spin-off and listing has just started,and the capital market is yet to be mature,so many problems existing in the spin-off and listing should be systematically sorted out and analyzed.In this context,this paper takes the spin-off listed companies as the research object,sorts out the motivations and influences of spin-off and listing on companies from multiple perspectives,and puts forward corresponding Suggestions,hoping to provide some reference value for similar companies to conduct spin-off and listing.In this paper,CRCC's spin-off of its subsidiary CRCCE is studied as a case,and the capital management strategy of spin-off and listing is analyzed and studied from multiple perspectives by combining theories and cases.Firstly,by sorting out and screening the existing theoretical research on spin-off and listing,the basic connotation of spin-off and listing and relevant research theories are summarized.Secondly,the paper introduces the industry background of CRCC and CRCCE in detail from multiple perspectives,the actual operating conditions of parent and subsidiary companies,and the specific implementation process of CRCC's spin-off and listing of CRCCE.Thirdly,this paper analyzes and studies the strategy of China railway construction equipment division from the reasons for the division and listing,market reaction,corporate governance structure,investment and financing environment and financial quality,and summarizes a series of influences of the division andlisting on the parent and subsidiary companies.Finally,according to the above analysis of the content of carding out the proposed spin-off listing.Through the research found that China railway construction and railway construction equipment from the spin-off listing of a certain amount of income.From the perspective of market reaction,the spin-off and listing offset the negative synergies brought by the diversification of the capital market to CRCC's parent company and subsidiary company to some extent,and further promoted the progress of the parent company and subsidiary company.From the perspective of governance structure,after the spin-off and listing,the governance structure of subsidiaries is more scientific and reasonable,which reduces the difficulty of the parent company's management of subsidiaries.From the perspective of external investment and financing environment and market share,spin-off and listing broaden the financing channels of subsidiaries and relieve the pressure of the parent company to provide funds for the subsidiaries to carry out business activities to a certain extent.In addition,it further promoted the pace of railway construction equipment's access to the international market and created conditions for the subsidiary and parent company to gain more market shares.From the perspective of financial quality,the successful separation of CRCCE further refined the company's main business and expanded the scale of its parent and subsidiary companies.As a result,the company's debt paying ability,operating efficiency,income quality and cash flow quality were improved,and the operating effect was good.Therefore,the spin-off and listing has made a certain contribution to the further development of China railway construction and railway construction equipment.