Research on the Impact of Spin-Off Listing on Corporate Performance: A Case Study of Wuchan Zhongda's Spin-Off of Wuchan Huaneng

Spin-off listing is a capital operation strategy that effectively addresses the issue of limited financing channels for companies. It can also incentivize management, improve corporate operations, enhance the operational capacity and cash flow of subsidiaries, unlock growth potential, and deepen transformation. China introduced spin-off listings in 2000, but due to strict regulations and an underdeveloped capital market, substantial progress was not made until 2019 when the registration-based system was implemented along with the issuance of specific regulations. This officially marked the beginning of domestic spin-off listings. As policy reforms took effect, the number of listed companies spinning off high-quality assets increased. However, due to the nature of business operations and listing challenges, most Chinese companies choose to spin off subsidiaries to the STAR Market rather than adopting a "Main Board to Main Board" approach. Research on "Main Board to Main Board" spin-offs has largely remained theoretical. Therefore, it is necessary to analyze practical cases of companies spinning off subsidiaries to the Main Board. This study selects Wuchan Zhongda's spin-off of Wuchan Huaneng, the first successful "Main Board to Main Board" spin-off in China's A-share market, as a case study.