A Study On The Causes And Economic Consequences Of Poly Property’s Spin-off And Listing

In recent years,the country has successively introduced a number of real estate regulation policies.Policies such as "no speculation on housing","three red lines" and "concentration ratio of housing loans" not only limit the growth of housing prices,but also inhibit the financing of real estate enterprises.At the same time,the real estate enterprises misjudged the residential demand of residents,and the real estate transaction market became more and more sluggish,the sales area dropped significantly,and the industry gradually entered the stock era due to the impact of the COVID-19 epidemic and the reduction of residents’ purchasing capacity.However,the government has provided more policy support and development ideas for the development of the property management industry,focusing on promoting the transformation and upgrading of property management services,which has opened up new development space for property management.Therefore,more and more real estate companies are splitting off their affiliated property sectors for listing in order to achieve reasonable utilization of internal resources.This article takes the successful spin off and listing of Poly Property by China Poly Development Holdings Group as an example for research,hoping to enrich the theoretical and practical research on the spin off and listing of China’s real estate enterprise property sector.This article mainly uses the literature retrieval method,case analysis method,and event research method.Firstly,relevant literature on the concept,motivations and economic consequences of spin off listings was reviewed,and relevant theories were summarized;Secondly,a study was conducted on the background of the real estate and property management industries,in order to analyze the process and motivation of Poly Property’s spin off listing;Once again,conduct a study on the economic consequences of Poly Property’s spin off and listing,and summarize whether it has increased corporate value.Research has shown that: The main motivation for Poly Property’s spin off and listing is to reduce information asymmetry,develop core strategies,broaden investment and financing channels,and motivate management.From the short-term stock price performance,after Poly Property’s spin off and listing,the stock prices of both the parent and subsidiary companies received a premium in the short term,and the market responded well.From the perspective of long-term effect analysis,Poly Property’s spin off and listing have created value for its subsidiaries,with overall good long-term operating performance and excellent long-term non operating performance.Finally,based on the above research results,corresponding suggestions were put forward for the spin off listing from the company’s own level and market supervision,in order to promote the healthy and stable development of spin off listing in China.