Research On The Overall Listing Performance Of Huihong Group

The state-owned economy is the main body of the national economy.In the early stage of the reform of state-owned enterprises,the state promoted the joint-stock reform of state-owned enterprises,but the capacity of capital market is limited.In order to better join the capital market,state-owned enterprises often divest and inject high-quality assets into joint-stock companies,and leave the assets with poor quality in the parent company,so as to reduce the difficulty of listing and separate listing.Under the historical conditions at that time,the split listing helped Chinese enterprises obtain considerable development in the international market competition environment and improved the competitiveness of enterprises,at the same time,enriched the capital market.With the development of economy and the change of national policy,the disadvantage of split listing becomes more and more obvious.As there are various business connections between the parent company and the listed subsidiary company,and the upstream and downstream industrial chains are closely related,it is easy to produce related party transactions,large shareholders encroach on minority shareholders' rights and interests,and all kinds of interests transmission,so the independence of the company can not be guaranteed.In order to solve these problems,overall listing,as a means of innovation,has become the mainstream of the reform choice of state-owned enterprises,which has realized the rise of company performance and improved the overall competitiveness of enterprises.But in the enterprises that have completed the overall listing,not all enterprises have achieved good development.Although some enterprises have achieved short-term performance development,the long-term development has not been sustained and effectively improved.Faced with these problems,it is of great practical significance to study how overall listing affects corporate performance and how to achieve the success of overall listing.This paper chooses the overall listing of HuiHong Group as a case study.Firstly,the event study method is used to get the positive market performance of Huihong Stock in the short term after the announcement.Then,the financial performance of the overall listing is analyzed by DuPont analysis method.The results show that the financial performance of the company has been improved after the overall listing.Finally,the impact of holistic listing on the financial performance of Huihong Group is stu died from three aspects.Through case studies,it is found that Huihong Group can successfully achieve the overall listing because in the process of injecting assets,Huihong Group has stripped out the business with poor profitability,which lays a good fo undation for the transformation and upgrading of the business model of the company.Moreover,by collecting funds,integrating follow-up business,establishing operation platform,cultivating and forming new industries,it promotes the smooth implementatio n of enterprise transformation strategy.Based on the case study,this paper draws the following enlightenment: first,the assets or businesses with poor quality should be disposed of before the overall listing,secondly,the resources business integration after the overall listing should be done well,and finally,when the overall listing can raise funds from strategic investors as a guarantee for the follow-up integration.