Research On Motivation,Approach Selection And Effect Of Country Garden’s Spin-off And Listing

The report of the 20 th National Congress of the Communist Party of China proposed to adhere to the positioning of "housing instead of speculation",and made it clear that the forward direction of real estate development is to improve people’s livelihood and wellbeing and improve the quality of people’s lives.In the context of the slowdown in the growth of the real estate industry,the activation of housing demand needs to return to the competitiveness of the product itself,such as property quality,construction quality,etc.,of which property management services affect residents’ satisfaction for a long time,which is an important factor for buyers to consider.The 2022 Central Economic Work Conference emphasized the effective prevention and resolution of risks of high-quality head real estate enterprises and promoted the smooth transition of the real estate industry to a new development model.The spin-off of property subsidiaries can improve the debt structure of real estate enterprises,resolve industry risks,and explore new development models,participate in property management fields closely related to people’s livelihood,and realize asset-light transformation.Therefore,the listing of spin-off property subsidiaries has become an option recognized by more and more real estate enterprises.As a representative enterprise in the domestic real estate industry,Country Garden spun off and listed its property management business after two preparations,which attracted market attention.On this basis,this paper selects the case of Country Garden’s spin-off and listing,and analyzes the motivation,path and effect of Country Garden’s spin-off and listing.This paper sorts out the domestic and foreign literature on spin-off and listing,defines the concepts related to spin-off and listing,and puts forward the theoretical basis of this paper.Then,the relevant background of the case enterprises and industries was introduced,and the motivation for the spin-off and listing of Country Garden Services was analyzed.Then,the two spin-off and listing processes of Country Garden are described in detail,and the reasons why Country Garden chose this spin-off and listing path are analyzed.Finally,the effect of Country Garden’s spin-off and listing is analyzed from the perspectives of market value,financial value and non-financial value.The results of the thesis show that Country Garden’s spin-off and listing is motivated by maximizing the value of subsidiaries,motivating management,finding business growth points and broadening financing channels,and at the same time choosing to build a red-chip structure to indirectly spin off and list in Hong Kong stocks for listing compliance and reducing tax burden.The study also found that the spin-off listing increased Country Garden’s market value and financial value in the short term,while the long-term effect was limited,and had an indirect positive impact on non-financial values such as R&D innovation capabilities,environmental protection performance and corporate governance capabilities.This thesis suggests that in the future,companies planning to spin-off and listing should clarify their motives for listing,be cautious about pursuing market hype,and choose suitable spin-off and listing paths based on actual conditions.Regulatory authorities should strike a balance between developing spin-offs and listings and strengthening market supervision,and pay attention to risks such as "hollowing out" of the parent company,parent company cashing out,and related transactions.