The Case Analysis Of City Investment Holding Company Split Shanghai Environment Listed

In the 1980 s,the merger boom swept across the United States,and most companies looked to expand their operations to gain higher economic benefits and diversify their business risks.However,with a series of negative effects brought by diversified management,the contraction strategy has been paid more and more attention by enterprises,and a series of contraction technologies such as split-listing and share repurchase have been used in daily capital operation.The theoretical research of China's split listing started in 1990,compared to other Western countries in the late start,until 2000 Tang Ren Tong split the Tong Ren Tong Technology listing is really the beginning of a split listing case study.By 2014,China's capital market ushered in a spin-off of the upsurge,but because the current China's securities market mechanism is not perfect,the application of domestic motherboard listing process complex,long approval cycle,most of the group companies choose to split the subsidiary plate after the listing in the overseas.In August 2014,Sandy Heavy Industry co.,ltd announced plans to split its subsidiaries into the overseas Hong Kong Stock exchange,and in October,CRCC split the listing of Kunming China Railway;At the end of the year,Hong Yi and Goldman Sachs poured billions into two subsidiaries of Neusoft to reach an agreement to split two subsidiaries.With the passage of time,China's capital market spin-off has undergone constant changes,by March 2017,China's City Investment Holdings split the Shanghai environment on the domestic motherboard of the successful listing of China on the way to split the new opportunity and exploration.Combining theoretical analysis and case analysis,the paper introduces the theory of spin-off listing at the first,through the theory of asymmetric information hypothesis,spin-off value hypothesis and corporate control hypothesis,and then makes a detailed introduction on the route selection of the listed cases in this paper.Finally,the paper analyzes the short term performance of the parent company and its subsidiaries to obtain the experience and lesson of the successful spin-off.On the basis of the existing theory,combined with the case of this paper,the main reasons of the city investment holding spin-off are to alleviate the information asymmetry,management incentive,the implementation of core strategy and meet the needs of financing.In the path selection,the reorganization of the assets in the first to absorb the same industry share B assets of the preparation and the choice of market and mode,in China's capital market has a better scalability.In the short term,the market reaction of the parent company and the subsidiary is more obvious,in the short term,the market showed concern over the management of the parent company's remaining assets and resource integration,and the share price fell;Meanwhile,the spin-off of the subsidiary market is expected to be better,the stock price rise significantly,showing a spin-off of the quality of resources and confidence.In combination with the case study of the split listing,it is found that the split listing on the one hand has a price revaluation on the undervalued assets in the group enterprise,which is favorable for the market to leave good resources,and the full and effective preparation,such as absorbing the same resources,is beneficial to increase the efficiency of spin-off,on the other hand,the parent company should choose the appropriate business content in the group's spin-off listing.In addition,the split stepmother company timely and effective resource integration has also become an asset reorganization of the object of concern.