Shanghai Electric Group Company Limited (SHA:601727) announced plans to separate its wind turbine production unit and list its shares on the country's STAR Market in Shanghai. The initial public offering (IPO) of Shanghai Electric's wind turbine business will include not more than 40% of its total share capital to investors on Shanghai's Nasdaq-style tech board, called the STAR Market, the parent company said in a bourse filing. Although it did not provide specific details about the targeted amount and a timeline for the transaction, it said the raised funds will go to support research and development (R&D) on wind power equipment projects and upgrading existing production capacity, as well as for after-sales services.

Following the spin-off, SEWP is expected to better focus on sustainable and green wind turbines and related equipment business. This is also seen to further improve its profits in the future, which in the first nine months of 2019 stood at CNY 100 million (USD 14.4 million/EUR 13 million), versus a CNY-52-million loss in 2018. In order to be implemented, the spin-off proposal needs to meet a range of conditions and get approval from Shanghai Electric's shareholders, the respective stock exchanges and the China Securities Regulatory Commission.