Research On Path Selection And Economic Consequence In Spin-Off And Listing Of Real Estate Enterprise

In recent years,with the structural adjustment of China’s macro-economy,especially after the introduction of many policies and measures such as "three red lines" and "two concentrations",all relevant government departments have thoroughly implemented the guiding ideology of "staying in houses and not speculating",adopted various policies and measures to prevent and resolve the risks in the real estate market,and repeatedly stepped up the monitoring and management of the overall real estate environment.As a result,the traditional real estate industry is struggling,and various real estate companies have sought new development paths and strived to open up other emerging fields.At the same time,the wave of M&A expansion has gradually receded,and the contractive asset restructuring method,which originated from developed countries in Europe and America,is on the rise.More and more listed group enterprises choose to split up and go public and return to centralized management in the field.To this end,the real estate industry also began to spin off its subsidiaries in the property sector.This paper will focus on the real estate enterprises and discuss on the path and influence of the listing of the property sector.Based on the case of Agile Group’s successful listing of Agile Life on the Hong Kong Stock Exchange,this paper adopts the method of combining theory with case study.From the theoretical research,the concept of spin-off listing and the classification of different types of spin-off listing under different bases are studied and distinguished,and the division of spin-off listing path according to different listing locations are mainly introduced.This case belongs to the type of overseas listing,which will be analyzed thoroughly.In the case study and analysis,this paper first gives a brief introduction to the industry background and parent company in combination with the actual situation and market environment,analyzes the path of Agile Group’s listing on the Hong Kong Stock Exchange,and then compares the conditions and regulatory policies for listing on the Hong Kong Stock Exchange and the A-share market,and finds that the conditions for listing on the Hong Kong Stock Exchange are more relaxed than those for listing in China,and concludes the reasons why Agile Group chooses to list overseas.Then this paper studies the economic consequences of the spin-off listing.In the short-term market effect,it is proved that the stock market gives a positive response through the event research method,and the value of the parent company’s stock is improved.In the long-term effect research,various financial indicators are used to analyze the impact of the spin-off listing on the debt repayment,operation,profitability and growth ability of the subsidiaries;In terms of governance effects,explore the changes after the spin-off listing through internal structure and ESG.Finally,according to the case,it is concluded that the spin-off listing can enhance the comprehensive strength of enterprises,improve business performance and enhance the financing ability of companies,and some suggestions are put forward that the spin-off listing should choose the right industry,choose the right path and develop continuously and stably.Through the research of this paper,the following conclusions are drawn: In comparison with domestic listing,the threshold of listing on the Hong Kong Stock Exchange is indeed lower,and the spin-off listing can indeed bring some positive effects to the parent company and achieve its listing purpose;From the perspective of the parent company,the spin-off listing will cause short-term market effects and enhance the total value of the parent company’s shares;From the perspective of subsidiaries,spin-off listing can indeed bring in capital,ease the financing pressure of subsidiaries and enhance core competitiveness,but it does not necessarily improve the operating efficiency for a long time.Through the study of this paper,it can provide a reference and some perspectives for enterprises with spin-off and listing plans in Hong Kong.