The Motivation Analysis And Effect Evaluation Of The First Case Of Hong Kong Stock Splitting To The Science And Technology Innovation Board To List-Shanghai Micro Port Endovascular MedTech

Assets reorganization is a common means of enterprise management,which plays an important role in the development of enterprises.It is mainly divided into two forms:company expansion and company contraction.In the development of the previous decades,enterprises mostly adopt the way of expandable asset reorganization to expand the scale and business,so as to enhance the enterprise value.However,in recent years,after years of diversification expansion,many large listed group companies have suffered from diminishing diversification dividend effect,deepening negative synergies,limited financing,undervalued market value of subsidiaries,agency problems of subsidiaries,and reduced core competitiveness.These problems have prompted listed group companies to choose to be split and listed,and return to professional management.What is the specific reason for the spin-off listing and what is the impact? This is the focus of this paper.This paper selects the Case Analysis of the First Case of Hong Kong Stock Splitting to the Science and Technology Innovation Board to list-Shanghai Micro Port Endovascular Med Tech,so it has typical research significance.This case study adopts the method of combining theoretical research with case study.From the theoretical research,we conclude that the motivation of general company splitting can be roughly divided into the following four categories: information asymmetry,financing demand,agency problem and core strategy.These motivations will prompt group companies to adopt spin-off listing to solve problems,which will lead to a series of market effects and business effects.What are the specific manifestations? Through combing the previous literature,it is found that spin-off listing can indeed bring some positive effects to the parent-subsidiary company and solve various problems in the motivation: From the perspective of the parent company,the spin-off listing will cause short-term market effect and enhance the market value of the parent company;From the perspective of the subsidiary company,the spin-off listing does bring new funds,relieve the financing pressure of the subsidiary company and enhance the core competitiveness,but it does not necessarily improve the operating efficiency.In the analysis of case studies,this paper first combined with the actual situation and market environment,the regulatory changes to A shares,the Science and Technology Innovation board listed the condition,advantage,the key points of inquiry,the stock exchange for such the red-chip companies to spin off back to audit principles made A comb,to split to subsequent return intention the red-chip companies produce some help,also hope to make more clear case to spin off listing process.Then,this paper analyzes the reasons for the case to choose to spin off and return to the science and innovation board for listing.The practical reasons are in line with expectations,which belong to the four kinds of reasons summarized in this paper.At the end of the paper use event study found that the parent company’s share price in the event window appear short-term market effect,recycling all kinds of financial index and operation effect of quantitative analysis,found the subsidiary debt paying ability,operation ability improvement is not obvious,profitability with no ascension,growth ability,strengthen management,in line with expectations,spin off listing is to solve the financing needs,but is the company’s operating improvement also depends on many factors,there is no consistent results.Finally,according to the relevant conclusions of the case analysis,we do more expansion thinking.Based on the analysis of the advantages and disadvantages of the spin-off listing,this paper suggests that the subsequent red-chip enterprises that intend to spin-off and return to the science and technology innovation board should have a clear understanding of their own situation,choose the appropriate listing path,evaluate whether they have the corresponding operation and management ability,and whether they can have sustainable and positive development after the spin-off listing;Based on the discussion of the market risks and regulatory issues arising from the spin-off listing,this paper suggests that the government regulatory layer should maintain a reasonable scale,improve the legal system,carry out functional supervision and implement differentiated management;Based on the disclosure of the risk of investing in the spinoff and listing of hot stocks,this paper suggests that investors remain rational about the spin-off and listing of hot topics,keep rational about the popularity of the science and innovation board,make the choice in line with their risk tolerance and adhere to value investment.