Zhejiang Expressway(ZHEXY), a Chinese company “is an infrastructure company principally engaged in investing in, developing and operating high-grade roads. The Group also carries on certain other businesses such as automobile servicing, operation of gas stations and billboard advertising along expressways.” The company has elected to conduct an IPO of its securities business,Zheshang Securities, while maintaining a majority stake. This is another case where it looks like no shares of the subsidiary will be distributed to shareholder, but some of the normal benefits of spins may accrue to them. We recognize that we understand nothing about Chinese companies and have formed no opinion on this, nor do we plan to. Anyone out there have any thoughts?
Disclosure: The author holds no position in any stock mentioned