What is the impact on both parties when listed companies split the capital of the parent company into subsidiaries?

Related to the performance and future development prospects of subsidiaries; If the spin-off company develops well and its performance is bright, it will be good for the stock prices of the parent company and its subsidiaries; On the other hand, the poor performance of subsidiaries will also have an adverse impact on the parent company's share price, such as the stock price decline.

Split listing is common in China, but rare in Europe and America. Generally, the boards of directors of listed companies in Europe and America hope to make the company bigger and bigger, while the large enterprises in China are all multi-platform, which is bound to be related to the national culture and economic development.

Split listing means that the parent company distributes the shares held by its subsidiaries to the shareholders of the parent company in proportion, so that the subsidiaries are separated from the operation of the parent company; It is a way of corporate restructuring. After the establishment of the new subsidiary, the parent company still maintains operational control.