Is it good or bad for subsidiaries to go public?

The listing of subsidiaries is definitely good for subsidiaries, but it may be good or bad for the parent company. Investors can analyze from the following aspects:

1, when the new shares are listed, many retail investors will turn to invest in the shares of the parent company if they can't buy the shares of the subsidiaries, so the share price of the parent company will rise;

2. Because the listing of subsidiaries can get more financing, financing will help the company improve its performance;

3. The relationship between the parent company and the subsidiary company is the relationship between control and being controlled, so the net profit of the subsidiary company in that year will be allocated to the parent company according to the holding situation of the parent company, which is called "net profit attributable to the mother" in accounting, which can increase the net profit of the parent company, which is good.

4. After the listing of the subsidiary, if the performance is average, or even the performance loses money every year, it is not good for the parent and subsidiary companies.

But whether it is positive or negative, it is a short-term factor. The positive stock price does not necessarily rise, and the negative stock price does not necessarily fall. It needs to be analyzed separately according to the stock trend and the fundamentals of mother and child wages.