Comparative Analysis Of A-share And H-share Spin-offs Of Listed Companies

China's capital market has developed rapidly in recent years.Many listed companies have achieved the purpose of optimizing resource allocation and diversified operations through mergers and acquisitions,thereby increasing the value of listed companies.With the diminishing marginal benefits of scale economies,an increasing number of listed companies have adopted the correction method of spin-off listing to alleviate the financing pressure of parent and subsidiary companies,focusing on the allocation of resources to core business.China's spin-off started late.The successful spin-off of Tong Ren Tang in 2000 aroused more attention from listed companies,but the domestic main board market lacked guidelines for spin-offs from2000 to 2009.During this period,many listed companies chose to spin off its subsidiaries go overseas for listing.With the smooth operation of the GEM and after the launch and the China Securities Regulatory Commission in April 2010 issued regulations related to the spin-off,domestic spin-offs have gradually started to rise.The establishment of the Science and Technology Innovation Board in July 2019 added a new platform for spin-off listing,and companies with spin-off requests have more diversified choices in spin-off paths.However,there are advantages and disadvantages to the A-share and H-share split-listing.Listed companies that have split-listing requirements should choose their own path based on their development status.This article first sorts out the developmental process of spin-offs and listings in China,introduces the latest access conditions for spin-offs and listings on the A-share and the Hong Kong Stock Exchange,analyzes as well as summarizes the current characteristics of spin-offs and listings under the multilevel capital market structure in China.Then it introduce the case that Shanghai Environment spins off and lists in the main board of A shares and that the spin-off and CRCCE spins off in Hong Kong,and briefly introduce the spin-off background,motivation and process of the twocompanies.Based on the similarities and differences of the A-share and H-share spin-off listings,This article makes a comprehensive comparison of A-share and H-share spin-offs from the aspects of the A-share and H-share spin-off listing policies,review efficiency,listing costs,valuation differences,and the subsidiary's solvency and profitability.And the advantages and disadvantages of A-share and H-share spin-offs are further analyzed and summarized.Finally,aiming at the differences of the spin-off and listing in different paths,this article proposes the relevant rules of spin-off and listing in China,including improving the regulatory role of intermediaries,strictly controlling the spin-off and listing approval system,and strengthening market supervision of asset evaluation.As well as it provides a reasonable basis for choosing spin-off paths and strengthening the risk prevention and control of spin-offs to companies that have improved their performance through spin-offs.