On September 21, the Hong Kong Stock Exchange published a “Consultation Paper” to solicit market opinions on a series of proposals. Among them, this reform proposes shortening the limitation period for parent companies not to submit a spin-off listing application after listing from three years to one year. Recently, Hong Kong stocks have ushered in a new wave of spin-off listing. Companies such as Hisense Group, Kingsley Biotech, Xinyi Glass, and Fosun International have launched spin-off plans. The operation path covers various forms such as fund-raising IPOs, physical distribution, and hybrid models. A number of experts interviewed said that spin-off and listing is becoming a normalized capital tool for enterprises to sort out assets and release value, but it is not a panacea; enterprises need to carefully select spin-off plans to balance capital operations with physical operations.

On September 21, the Hong Kong Stock Exchange published a “Consultation Paper” to solicit market opinions on a series of proposals. Among them, this reform proposes shortening the limitation period for parent companies not to submit a spin-off listing application after listing from three years to one year. Recently, Hong Kong stocks have ushered in a new wave of spin-off listing. Companies such as Hisense Group, Kingsley Biotech, Xinyi Glass, and Fosun International have launched spin-off plans. The operation path covers various forms such as fund-raising IPOs, physical distribution, and hybrid models. A number of experts interviewed said that spin-off and listing is becoming a normalized capital tool for enterprises to sort out assets and release value, but it is not a panacea; enterprises need to carefully select spin-off plans to balance capital operations with physical operations.