Research On The Motivation And Performance Of A-Share Listed Companies Split Listing

With the development of capital market,large-scale enterprises with strong comprehensive strength and multi-market segments often choose to realize the diversification of the company through mergers and acquisitions,so as to improve the market competitiveness of enterprises.However,over-expansion and diversification may lead to low operating efficiency,and ultimately reduce the business performance of enterprises.To avoid the negative synergies of over-expansion,some large companies have turned to a contractionary asset approach-listing by spin-off.In December 2019,the China Securities Regulatory Commission(CSRC)issued a set of rules on the pilot scheme for the domestic listing of subsidiaries of listed companies,which set out specific requirements for listed companies to spin off their subsidiaries to list in China,this provides a policy for companies that intend to spin off.In January 2022,China Securities Regulatory Commission(CSRC)integrated the relevant regulations of domestic and overseas spin-off into“The rules of spin-off of listed companies(trial implementation)”,which indicates that the policy system of spin-off listing in our country is more perfect.Therefore,in this context,the impact of the split listing on the performance of listed companies,combined with the motivation of the split listing,in-depth exploration of the effective path of the split listing.In this paper,Huapont Life Sciense will be a subsidiary of Kaisheng New Material split to the Shenzhen Stock Exchange Gem listing as a case study,in the course of the study,it mainly involves case analysis,event study and literature study.First of all,the basic situation of the two sides of the split,combed the health of Huapont Life Sciense split Kaisheng New Material listing process.On this basis,this paper will focus on the analysis of Huapont Life Sciense spin-off listed motivation,Path and performance,and finally draw conclusions and inspiration.In order to comprehensively analyze the effect of the split listing,the event study method is used to analyze the short-term stock price effect of Huapont Life Sciense and Kaisheng New Material,and to determine whether the split has increased the market value of parent-subsidiary companies.Secondly,we use the financial indicators to measure the change of four capabilities before and after the split of parent-subsidiary companies,and then judge the impact of the split listing on the parent-subsidiary companies through industry comparison.At last,this paper analyzes the non-financial indicators of parent-subsidiary company’s corporate governance,industry status,business layout,technological innovation and human capital.Through the case study,this paper draws the following conclusions:(1)The spin-off has produced short-term positive effects on the stock of the parent-subsidiary company,and the parent-subsidiary company has obtained a reasonable valuation;(2)The spin-off and listing broadened the financing channels of the parent-subsidiary company and improved the solvency of the parent-subsidiary company;(3)The spin-off and listing enables the parent and subsidiary companies to focus on their main business and consolidate the leading position of the subsidiary in the segmented field.