Research On The Performance Analysis Of China Railway Construction Corparation Limited’s Equity Carve-outs Subsidiary

With the continuous development of global economy,frequent trade wars and uncertainties of international situation,domestic enterprises are facing more and more competitive pressures.Under the new situation,it is urgent for domestic enterprises to adjust their industrial structure and improve their core competitiveness.In recent years,dozens of listed companies have planned or completed the split listing,which has been used more and more as a means of improving management ability and increasing financing channels.Therefore,this paper focuses on the motivation,mode,process and economic consequences of the split listing,which is very necessary at present.Starting with the concept,this paper analyses the macro environment and the recent situation of the industry.Then,by introducing the motivation,mode and process of China Railway Construction Separation,it deeply excavates the short-term announcement effect and long-term economic consequences of the Separation and Listing.From the announcement effect,we can see that the split listing is the parent company’s excess return in the short term,and the market reaction is more positive.However,the positive impact is limited.Combining with the financial indicators of parent and subsidiary companies,we can see that the short-term indicators increase brought by the split listing does not bring a sustained positive impact,and in the long run,it does not solve the problem of the decline of the parent and subsidiary companies operational capacity.Based on the above analysis,this paper summarizes the reasons for the separation of China railway construction.The value of railway construction equipment is underestimated,and the international reputation is enhanced.In order to achieve the improvement of capital structure,optimize management responsibilities,and highlight the main business.The advantages and disadvantages of the split listing are briefly described,and suggestions for China’s railway construction,railway construction equipment and supervision are put forward.China Railway Construction needs to clarify the company’s strategic direction,concentrate on the main business,further increase the company’s main business income,improve management efficiency,and rationally select the reorganized objects,so as to improve the company’s capital structure and improve the company’s performance.Aiming at the railway construction equipment,the paper puts forward some suggestions,such as increasing the channels and types of passenger sources,and realizing the rational use of funds after financing.