"Hong Kong Delisting North" and "A Delisting North" Running in Parallel: Quality Companies Gather at Beijing Exchange

Data Source: Wind Zhong Tian / Chart

Securities Times Reporter Zhong Tian

With CaiKe Technology passing the review at the Beijing Stock Exchange, a new example of “Hong拆北” has emerged. In recent years, Hong Kong-listed companies and A-share companies have been pushing their subsidiaries onto the Beijing Stock Exchange, forming a parallel trend of “Hong拆北” and “A拆北,” highlighting the attractiveness of the Beijing Stock Exchange as a primary platform for serving innovative small and medium-sized enterprises.

“Hong拆北” is becoming a trend

Recently, CaiKe Technology successfully passed the review, becoming the second Hong Kong-listed company to spin off a subsidiary onto the Beijing Stock Exchange, marking further maturity of the “Hong拆北” pathway.

CaiKe Technology’s parent company is CaiKe New Energy, listed in Hong Kong. CaiKe Technology belongs to the fine chemical industry, with core products including high-performance organic pigment intermediates, food additive intermediates, and light stabilizer intermediates. It is a national-level specialized and innovative “Little Giant” enterprise, a national intellectual property advantage enterprise, and has been recognized as a manufacturing champion enterprise in Hebei Province. The company plans to raise approximately 210 million yuan in its upcoming listing.

Tian Gong Co., as the first “Hong拆北” stock, officially listed on the Beijing Stock Exchange on May 13, 2025. It surged 411.93% on its first day, becoming one of the most watched new stocks of the year at the Beijing Stock Exchange and setting a benchmark for subsequent “Hong拆北” cases.

Tian Gong Co. is the core subsidiary of Hong Kong-listed Tian Gong International. It is a national-level “Little Giant” enterprise in the titanium alloy field, deeply integrated into the Apple supply chain, known as the “Apple Chain Little Giant.” Its products are widely used in consumer electronics, aerospace, and other high-end fields. Its spin-off listing coincided with the implementation of new strategic placement rules at the Beijing Stock Exchange, making it the first stock to relax the number of strategic investors, attracting top institutions like CICC, CITIC Securities, Shanghai Beiyin, and Shanghai Chenyang to participate in strategic placements.

In fact, “Hong拆北” is becoming one of the paths for Hong Kong companies to optimize capital structure and unlock subsidiary value. Recently, Ruimai Technology announced that its listing application at the Beijing Stock Exchange has completed guidance filing. Hong Kong-listed Minhua Holdings indirectly holds 82.76% of Ruimai Technology. Minhua Holdings believes that the spin-off listing will enhance Ruimai Technology’s and the company’s market visibility and strengthen brand recognition. It will also help both parties establish independent financing platforms, promoting business growth and expansion.

The “A拆北” wave heats up

Alongside the promotion of Hong Kong stock spin-offs, since this year, “A拆北” cases have frequently emerged, becoming another market highlight.

On the same day CaiKe Technology passed the review, A-share company Yinlun Co. announced that its controlling subsidiary Langxin Electric successfully passed the review. Langxin Electric’s main business is R&D, production, and sales of thermal management system electric drive components, and it is the largest supplier of electronic fans for passenger vehicle thermal management systems in China. The company is a national high-tech enterprise and was recognized as a national-level “Little Giant” enterprise in 2024.

On March 16, the Hong Kong Stock Exchange disclosed that Putailai had submitted an application for listing on the main board, aiming to develop an A+H platform. Just prior, the company announced plans to spin off its controlling subsidiary Jiatuo Intelligent for listing on the Beijing Stock Exchange. Jiatuo Intelligent is the core platform for Putailai’s automation equipment business. The IPO plans to issue no more than 46.51 million shares, with funds to be used for high-end intelligent equipment industry supporting projects, core technology R&D, industrialization capacity enhancement, and working capital.

Additionally, since this year, Xiamen Tungsten’s Jinlong Rare Earth and Chenxin Pharmaceutical’s subsidiary Fodu Pharmaceutical have also announced “拆北” plans.

Since the establishment of the Beijing Stock Exchange, many A-share companies have successfully spun off subsidiaries onto the platform, with some becoming key star enterprises in this sector. For example, BTR, spun off from China Baoan, has been a market cap leader on the Beijing Stock Exchange; Minshida, the first state-owned enterprise to spin off onto the Beijing Stock Exchange, listed in April 2023, with its parent company being Taihe New Materials; Hongyu Packaging, a subsidiary of Angel Yeast spun off for its focus on food packaging materials, is a leading niche in the food packaging field.

Continued attraction of high-quality SMEs

As the number of listed companies on the Beijing Stock Exchange reaches 300, analysts believe that the continuous improvement of the spin-off system and the ongoing promotion of “Hong拆北” and “A拆北” demonstrate the Beijing Stock Exchange’s growing appeal as a main platform for serving innovative SMEs.

Liu Jing, Chief Analyst at Shenwan Hongyuan New Third Board, believes that as a main platform for innovative SMEs, over half of the listed companies are “Little Giants” in specialized and innovative fields, and more than 20% are single-competitor champions. The quality of listed companies has significantly improved this year, with the average net profit surpassing 100 million yuan, and the quality of new stock supply has been optimized.

Liu Jing suggests that the Beijing Stock Exchange should further enhance market competitiveness by: first, exploring optimized listing pathways for frontier technology SMEs, utilizing the new standard for unprofitable companies, and developing innovative standards for strategic emerging industries and future industries; second, strengthening the linkage and tiered development between regional equity markets, the New Third Board, and the Beijing Stock Exchange, emphasizing “earlier, smaller, newer” services, and providing comprehensive listing cultivation services; third, enriching investment product offerings and improving the “long-term capital investment” ecosystem, such as launching indices like the Beijing Stock Exchange 50 ETF and specialized indices for “Little Giants,” and exploring sector-specific and factor-based index strategies.

(Edited by: Wang Zhiqiang HF013)

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