Research On The Motivation And Economic Consequences Of The Spin-off And Listing Of CRCC

In recent years,due to the continuous growth of the global economy,many companies have been searching for new business opportunities,and more and more companies are expanding their own scale.To achieve high-quality development at this stage,the first step is to carry out strategic upgrades and transformations of the company,and find a suitable path for its development.Spin off and listing is a good choice for enterprises to seek development,which can to some extent alleviate the negative synergy effect caused by blind expansion.The company selected for this study,China Railway Construction Corporation,is the first enterprise to be listed on the A-share and H-share split,and is also a state-owned enterprise.Its second announcement on the split was made in 2019.After the China Securities Regulatory Commission issued new regulations on the domestic listing of subsidiaries of listed companies,China Railway Construction Corporation actively implemented corresponding policies and made efforts to become the first A-share to be listed domestically.This behavior has attracted widespread attention from society.The main research method of this article is case study method,which combines domestic and foreign scholars’ research on the theory of split listing,as well as relevant cases,to conduct in-depth research on the two spiffs of the selected company,China Railway Construction.This article first introduces the research background and significance,briefly introduces the development of the theory of split listing,and then subdivides and sorts out relevant concepts.The key part is the case analysis of the selected company.Based on the theoretical foundation introduced earlier,a distinction is made between the two separate listings,and the different listing policies for A-shares and H-shares are introduced.Next,summarize and summarize the reasons for China Railway Construction’s two split listings,and compare the similarities and differences in the two split motivations.Based on the previous analysis,a study will be conducted on the economic consequences of the split,mainly analyzing financial performance indicators and non-financial performance indicators.Compare the data of the parent company and the subsidiary companies that were split and listed separately.In terms of financial performance indicators,select profitability indicators,solvency indicators,and operational capacity indicators.Analyze the governance structure and business optimization of the company by selecting non-financial performance indicators,and strive to demonstrate the impact of split and listed companies on the parent and subsidiary companies from multiple dimensions.Finally,draw conclusions and relevant suggestions,providing a reference for companies with spin off ideas in the future.At present,the mainstream trend of domestic split listing is to separate subsidiaries or business sectors with strong development momentum,clear development prospects,high policy favor,and low business relevance from the parent company,and place them in the secondary market for operation,hoping to expand the overall strength of the enterprise.I hope that through the research in this article,some reference can be provided for enterprises that want to undergo enterprise transformation or spin off in the future.It should be noted that the construction industry has its own unique characteristics,and when learning from reference,it is necessary to distinguish the nature of the enterprise,not blindly follow,and find suitable companies from multiple case companies for learning.For the infrastructure industry,choosing a spin off listing requires the company to have its own core competitiveness,timely information disclosure to reduce risks caused by information asymmetry,and finally,continuous improvement of the company’s organizational structure and incentive mechanism to promote long-term development.