Countercurrent 1982

Chapter 1501 Spin-Off Listing
Duan Yun had never considered listing Tianyin Group before. The reason is very simple, because Tianyin Group is not short of money, and Duan Yun does not want to recruit some shareholders to judge his company.

But since Li Hao called him to the office for an interview in person today, this face must be given, and must be given.

"If you have any ideas, just say it. The establishment of the Shenzhen Stock Exchange is a major event in the economic development of our Shenzhen Special Economic Zone. It can raise a lot of idle funds from the society, and it can also solve the funding problems of our local enterprises. As our company, Tianyin Group It is a model of private enterprises, and I think it should take the lead..." Li Hao said.

When Li Hao said this, his intentions were already very obvious. The current old five stocks in SZ City alone are not enough to support the influence of the Shenzhen Stock Exchange. If it goes public, it will definitely attract a lot of attention. Li Hao has already calculated this point.

However, Li Hao also understands that Tianyin Group is really not short of money. A few years ago, Tianyin Group borrowed from the bank, but since the year before last, Tianyin Group has never reached out to the bank. Not only that, Tianyin Group It is also one of the largest depositors of several major state-owned banks in Shenzhen, and there is also a large amount of foreign exchange reserves. If such a company goes public, it is actually helping shareholders make money, and Duan Yun is actually "cutting flesh", so Li Hao is worried that Duan Yun will Do not agree.

"I think this is a good thing!" After thinking for a while, Duan Yun suddenly replied, only to hear him continue: "Our Tianyin Group is willing to accept the city government's proposal to issue shares on the Shenzhen Stock Exchange!"

"Um, that's great!" Li Hao's eyes lit up when he heard the words, he never thought that Duan Yun would agree so simply.

"But there is one thing I want to explain to Mayor Li..."

"What do you have to say?"

"My idea is not to list our group company as a whole in the early stage, but to split up some businesses and set up branch companies to go public. At present, Tianyin Group has many branches, including chip factories, real estate companies, electronics factories, machinery factories, etc. Wait, these can be spun off and listed, and in terms of the benefits of these branch companies, they can definitely make profits for shareholders." Duan Yun made a serious debut.

"Spin-off and listing? Is there another way?" Li Hao asked curiously.

Li Hao himself does not study economics, and he does not have a deep understanding of stocks. He only knows some basic principles, concepts and operating procedures of the stock market. He has never heard of the term spin-off and listing before.

The so-called spin-off and listing means that a parent company distributes its shares in subsidiaries to shareholders of the existing parent company in proportion, so that legally and organizationally, the operations of the subsidiaries are separated from those of the parent company. separate out.

This way of splitting and listing is very common in the stock market of later generations, but nowadays, it is very rare both at home and abroad.

In the earliest international stock market, shares were basically listed in the name of a single company. Later, with the development of the company, many listed companies have several subsidiaries under the name of a parent company. In order to adapt to securities investment According to the development trend of the market, the stock markets of some developed countries allow the parent company to spin off its subsidiaries, establish new listed companies, and issue new shares for listing. It is not uncommon, and Li Hao has never heard of this form before, and it is quite normal.

"The so-called spin-off and listing is to separate some subsidiaries of our group company and set up a new company to go public. In this way, our group company can still retain the nature of a non-joint stock company." Duan Yun paused, and then said: "In addition, our parent company can also hold about half of the shares of the new company, and the other half of the shares will be listed. There are precedents for this listing model abroad..."

"Can you still play like this?" Li Hao was stunned when he heard this.

"All the subsidiaries of our group company are very profitable, at least the development prospects in the next few years are quite good, and with the backing of the parent company, the listed branches will have a strong ability to resist risks, and even if The parent company is losing money, and the listed branch company will not be affected because it is independently accounted for. All in all, I can guarantee the interests of shareholders to the greatest extent by doing this." Duan Yun said seriously.

"This... about your proposal, we need to discuss it with the city government..." Li Hao said with a slight frown.

Although Li Hao feels that the split-listing plan proposed by Duan Yun is feasible, he still needs to hold a meeting to discuss whether it can be implemented.

At present, the establishment of the Shenzhen Stock Exchange in Shenzhen is planned and implemented by the SZ City Capital Market Leading Group, which includes the leaders of the SZ Municipal Party Committee and Shenzhen’s experts in charge of finance. Don't make decisions lightly.

In fact, in the early 90s, Mainland China did not have a set of formal and comprehensive stock and securities trading laws at all, nor did it establish the Securities Regulatory Commission. Interim Measures for the Administration of Stock Issuance", and in this interim management approach, many rules have not yet been perfected.

In addition, on July 1988, 7, the People's Bank of China held a symposium on the securities market, led by the People's Bank of China. Both the Shanghai Stock Exchange and the Shenzhen Stock Exchange adopt the management regulations issued by the People's Bank of China in 9.

In this interim stock and securities market management method, there are no clear regulations on splitting and listing, so if Li Hao wants to adopt Duan Yun's plan, he still needs to revise and formulate the interim management regulations on the stock and securities market currently adopted by Shenzhen. Report and apply to Bank of China.

"No problem, I also need some time to prepare." Duan Yun said with a smile.

In fact, Duan Yun has not made preparations for splitting and listing in a short period of time. At present, the group company has many subsidiaries. Which company should be split and listed needs to be carefully considered, because once the subsidiary is split and listed, it means that Duan Yun will lose The dominance over a part of the company may affect the development and interests of the entire group after some key branches are split off.

(End of this chapter)