The Case Study Of Railway Equipment Carve-outs Of China Railway Construction In Hong Kong

With the rapid development of market economy,many enterprises achieve diversifieation through merger and reorganization.However,a series of negative synergistie effects are brought about by diversification.Therefore,the enterprises began to try to split and list some of the business sectors that are not highly related to the parent company or the subsidiaries with better development prospects,as a way to return to specialization of diversification.At the same time,it is regarded as an effective attempt to realize the maximization of enterprise value.Through the capital market listing and fund raising,the rational allocation of enterprise resources can be achieved,and the organizational structure of the enterprise can be improved,the operational risk can be reduced,and the strategy of the market economy will be speeded up.Adjust the pace,for the enterprise in the development process of the lack of funds to provide a corresponding solution,finally enable the enterprise to find a rapid expansion of the road of capital.Due to the process and approval cycle of the main board listing in China,most enterprises choose to split up from the company to the overseas listing.The case of China Railway Construction equipment listed in Hong Kong is of great research significance and reference value as the typical case of the first A-H listed subsidiary of Central Enterprises listed on the main board of the Stock Exchange of Hong Kong.In recent years,state-owned enterprises have earried out mixed ownership reform under the guidance of national policies,among which some diversified state-owned enterprises choose to split sub-companies to meet the strategic needs of enterprises.However,under the background of capital market reform in our state-owned enterprises,whether the state-owned enterprises choose to go publie outside China will bring positive effect to the enterprises,whether they can achieve the expected financial performance,and whether the state-owned enterprises will be able to achieve the expected financial performance.Whether there is a good performance in the capital market to create value for shareholders and public shareholders is based on the question that the capital contraction strategy of state-owned enterprises listed separately is worth studying and discussing.This paper adopts the method of literature review,theoretical research and case analysis,based on the relevant theory of split listing,selects the case of China Railway Construction split Iron Construction equipment listed in Hong Kong as a research sample,from the case background,motivation,The present situation of the split listing in China and the comparison of the conditions of the split listing between the mainland and Hong Kong,the process of the split listing,the basic conditions,the impact of the listing,the effect and the deficiency of the listing are analyzed in this case.It is hoped that through the study of the case study on the listing of China Railway Construction equipment in Hong Kong,the concrete impact of the split listing on the financial performance,non-financial performance and capital market response of the enterprise will be measured.In this case,a spin-ofif listing The positive results are mainly reflected in non-financial performance,while the negative results are mainly reflected in financial performance and capital market performance.After comprehensive analysis,this paper deeply excavates the causes of the negative results,and puts forward some reasonable suggestions on the basis of the theoretical research.It is hoped that the negative effect of the split listing in this ease can provide effective reference for other enterprises that have the intention to split the listing.