Various signs indicate that spin off listings are increasingly becoming an effective way for state-owned enterprises to expand financing channels for high-quality assets and actively cultivate strategic emerging industries. According to iFinD data from Tonghuashun, as of June 5th, after excluding cases of termination of spinoffs, 74 A-share listed companies are promoting spinoffs, with over 50% coming from state-owned enterprises, including 14 central enterprises and 24 local state-owned enterprises. Since the beginning of this year, the division team of state-owned enterprises has been continuously expanding. In terms of central state-owned enterprises, China Energy Construction Corporation, China Unicom, China Communications Construction Corporation, China Southern Airlines, China Resources Power, China Power Construction Corporation, and others have disclosed or updated the process of subsidiary spinoffs and listings for the first time. In terms of local state-owned enterprises, StarNet Ruijie has released its first announcement on the division and dismantling of funds. From the perspective of splitting the subsidiary's business, it involves emerging fields such as new energy, internet services, logistics, and design. In response, IPG China Chief Economist Bai Wenxi told Securities Daily that the brewing and implementation of a new round of deepening and upgrading actions for state-owned enterprise reform, as well as the encouragement of the State owned Assets Supervision and Administration Commission to increase the layout of strategic emerging industries by central enterprises within the year, have become important motivations for state-owned enterprise spin off and listing. They have positive demonstration significance for promoting state-owned enterprise reform, accelerating the capitalization of state-owned assets, and promoting high-quality development of the capital market. From a policy perspective, China's policy support for the spin off and listing of state-owned enterprises has significantly increased. In January 2022, the China Securities Regulatory Commission announced the "Rules for the Separation of Listed Companies (Trial)", which shortened the waiting time for domestic separation and listing. In May 2022, the State owned Assets Supervision and Administration Commission (SASAC) released the "Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises", which proposed supporting the spin off and listing of subsidiary enterprises that are conducive to streamlining business structures, highlighting main business advantages, optimizing industrial layout, and promoting value realization. Since the beginning of this year, a new round of deepening and enhancing the reform of state-owned enterprises has gradually been brewing and advancing. In May, the State owned Assets Supervision and Administration Commission has made multiple deployments to support central enterprises in accelerating the development of strategic emerging industries. From the perspective of the purpose of the split, "promoting the preservation and appreciation of state-owned assets" has become a keyword in the announcement prompts. Yu Tianxu, a macro researcher at Wanlian Securities, told Securities Daily that the spin off and listing can meet the needs of state-owned enterprise reform and asset restructuring, and help build a Chinese characteristic valuation system. At the same time, it helps to encourage the cultivation and development of strategic emerging industries, and create a group of "specialized, refined, and innovative" strategic layout science and technology innovation enterprises, which are closer to the country's strategic development direction. For the parent company, it helps to achieve the professional integration of "one industry, one enterprise" and helps the parent company focus more on its main business. Furthermore, if the spin off is successful, the subsidiary will also face new development opportunities. Yu Tianxu added that after the successful spin off and listing, the subsidiary can expand financing channels, accelerate industrial upgrading, and increase research and development investment. From a valuation perspective, after the spin off and listing, the business characteristics, growth, profitability, and other aspects of the subsidiary become more prominent, which helps to enhance the company's valuation and market recognition. By splitting up subsidiary companies for listing, it can solve the incentive problem of subsidiary companies and further improve the standardization of corporate governance, "Liu Shengyu, managing partner of Gaohe Investment, told Securities Daily. From the perspective of the capital market, the spin off of state-owned enterprises is of great significance. Yu Tianxu