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

Data Source: Wind Zhong Tian / Charted by

Reporter Zhong Tian, Securities Times

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

“Hong Kong拆北” 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 Kong拆北” pathway.

CaiKe Technology’s parent company is CaiKe New Energy, listed in Hong Kong. CaiKe Technology operates in 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 “Little Giant” enterprise specializing in innovation, a national intellectual property advantage enterprise, and has been recognized as a manufacturing industry champion in Hebei Province. The company plans to raise approximately 210 million yuan in its listing attempt.

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

TianGong Co., Ltd. is the core subsidiary of Hong Kong-listed TianGong 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, involving top institutions such as China International Capital Corporation, CITIC Securities, Shanghai Beiyin, and Shanghai Chenyang.

In fact, “Hong Kong拆北” is becoming one of the pathways for Hong Kong companies to optimize capital structure and unlock subsidiary value. Recently, Ruimai Technology announced that its application for listing 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 companies establish independent financing platforms, promoting business growth and expansion.

The “A拆北” Wave Grows

Alongside the promotion of “Hong Kong拆北,” since this year, “A拆北” cases have been frequently emerging, becoming another highlight in the market.

On the same day CaiKe Technology passed the review, A-share company Yinlun Co., Ltd. announced that its controlling subsidiary, Langxin Electric, successfully passed the review. Langxin Electric specializes in R&D, production, and sales of thermal management system electric drive components, and 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 establish an A+H platform. Just prior, the company announced plans to spin off its controlling subsidiary, Jiatou Intelligent, for listing at the Beijing Stock Exchange. Jiatou 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 Chenzhen 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 stars in this sector. For example, BTR, spun off from China Baoan, has been a market cap leader at the Beijing Stock Exchange; Minshida, as 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, focuses on R&D and production of food packaging materials and 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, along with the ongoing promotion of “Hong Kong拆北” and “A拆北,” demonstrates the Beijing Stock Exchange’s increasing appeal as a main platform for serving innovative small and medium-sized enterprises.

Liu Jing, Chief Analyst at Shenwan Hongyuan for the New Third Board, believes that as a platform for innovative SMEs, over half of the listed companies are “Little Giants” and more than 20% are single-industry champions. The quality of companies listed at the Beijing Stock Exchange 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 exploring the following: first, optimize listing pathways for frontier technology SMEs, utilizing the new standard for unprofitable companies and exploring innovative standards in strategic emerging industries and future industries; second, strengthen the linkage and tiered development of “regional equity markets—New Third Board—Beijing Stock Exchange,” emphasizing “earlier, smaller, newer” service positioning, and providing comprehensive listing cultivation services; third, enrich the investment product spectrum and improve 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 indices.

(Edited by: Wang Zhiqiang HF013)

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