Research On The Motivation And Performance Of Country Garden’s Spin Off And Listing

China’s capital markets are thriving today thanks to high-quality,high-speed economic development.The defects such as inefficient governance,uneven allocation of resources or conflict between different businesses also surface.Therefore,many group companies began to use spin-off listing to shrink assets,such as independent listing of subsidiaries or spin-off of high-quality assets,in order to maintain sustainable development ability.Affected by the market,gradually some listed entities choose to use this mode of capital operation.Statistics show that by the end of 2021,nearly 70 Chinese listed companies have announced their intention to spin-off their subsidiaries and go public.In the face of such market enthusiasm,China Securities Regulatory Commission(CSRC)continued to optimize the conditions for spin-off listing and strengthened market supervision.Many enterprises began to choose to be listed on the Hong Kong Stock Exchange.So,what are the intrinsic reasons for companies to go public by spin-off? How will the business performance of the parent-subsidiary company change due to the spin-off and listing? It is important to explore this situation.In recent years,the development of the real estate industry has slowed down.After the successful spin-off of colorful Life in 2014,real estate spin-off property is regarded as the new continent of real estate property development.Therefore,this paper selects the leading real estate enterprise Country Garden as the analysis target,and in connection with China’s capital market environment and country Garden’s own characteristics,deeply excavates the motivation for Country Garden to disintegrate its subordinate property,Country Garden service,and go public.At the same time,with the help of Eva and several financial indicators,this paper studies how the spin-off will affect Country Garden and its service performance.With the help of the research on the successful divestment of the enterprise,the intention of listing in the capital market through the divestment of the real estate enterprises to provide reference.The results of the case analysis show that the spin-off listing of Country Garden can reduce the degree of service information asymmetry of Country Garden,and the enterprise value can be objectively evaluated and released.After being listed,Country Garden Can obtain an independent listed platform for financing and invest in the main property service field to reduce its dependence on the parent company and gain a larger market share.Finally,the spin-off listing,as an incentive effect for executives,can promote their management efficiency and reflect the value of the company.In the process of spin-off and listing,no matter the parent company or its subsidiary Country Garden Service,companies can obtain excess returns during the short window period of spin-off and listing,which reflects the optimistic attitude of the capital market.From the perspective of financial indicators,the profitability of Country Garden service after the spin-off has improved and its operating capacity has been stable.The asset quality of listed companies has improved and sustained growth level has been achieved through the spin-off,indicating that the spin-off and listing can bring good performance to Country Garden and its service in the short term.In this regard,the article believes that in the upsurge of real estate property spin-off listing,enterprises should fully study the spin-off listing related policies and conditions,ensure their independence,strengthen the development of core understanding,and improve the level of market competition.