Research On The Motivation And Performance Of The Group's Overseas Equity Carve-outs

Since the listed domestic companies which complete the share reform,the capital market becomes increasingly active.From the perspective of the overall environment of the capital market,many restrictions in the domestic capital market have not been able to meet the international development and expansion needs of listed companies,coupled with international trade frictions.As a result,the independent listing of overseas carve-outs subsidiaries has become the international expansion strategy choice of many group companies.The opening of the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect" provides many policy conveniences for the company to connect to the overseas capital market.Many domestic group companies have attempted to optimize the internal capital structure of the group through overseas carve-outs,to achieve the effect of capital internationalization,thereby promoting the internationalization of the group's overal development and expansion and enhancing the group's overall value.To study the motives,effects and international achievements of the spin-off of the group company,the thesis studies the case of CIMC's equity carve-outs and listed in Hong Kong under the background of “Shenzhen-Hong Kong Stock Connect” and analyzes the SWOT motivation and strategy,financial situation analysis,internationalized performance evaluation and market reaction of CIMC 's multiple carve-outs of core parts.The analysis found that the main motivations for CIMC's multiple equity carve-outs including an independent business capital operation platform,optimizing and integrating diversified businesses,better access to international markets,financing needs and enhancing the value of the group,so that making equity carve-out a feasible strategy to promote the group's internationalization;The positive financial impact of carve-out subsidiary of CIMC Vehicles is greater than that of the parent company,it means that CIMC has not received a significant financial improvement while more positive financial improvement reflected on CIMC Vehicles;The capital market's reaction to the carve-out of CIMC Vehicles is less intensely than the previous cases,which is related to the investor's negative attitude and the capital market environment;After carving out,the internationalization performance has been rated as "Excellent" and the Group's internationalization has a significant effect.At the end of this thesis studies the impacts the carve-outs of companies on financial performance,international performance andmarket response,and summarizes the experience of the group company's carve-outs activities.At the same time,it provides five points of enlightenment for the company's carve-outs activities and internationalization path: first is to choose the domestic and overseas carve-outs market reasonably;the second is to pay attention to the mid-and long-term development of the parent company;the third is to develop diversified international business and diversify risks;the fourth is to use internationalization of financing to raise market attention;Fifth is to innovative development,strengthen performance management and reduce costs.