Figure/Vision China As we all know, banks have money, and banks also make money. However, the equity of banks has become unpopular!
Recently, the JD auction platform posted the notice information of the third auction of 0.8213% equity of Bank of Qinghai, with the starting price of 49.728 million yuan, and the auction started on August 6. Not long ago, this equity has been auctioned twice in succession. For each auction, the bottom price will be 20% off the previous one.
There is no interest in "folding up", and the situation of equity auction of Bank of Qinghai is not uncommon. Since this year, the equity of many banks has even been as low as "starting at RMB 1", and no buyers have been found.
The bank's equity is no longer good. What happened?
The equity of Bank of Qinghai is "no one cares"
The equity of Bank of Qinghai has been auctioned many times.
JD auction platform shows that as early as May 27, 21 million shares of Bank of Qinghai were split into 21 targets for the first auction, with each target of 1 million shares at a starting price of 3.7 million yuan, totaling 77.7 million yuan. The auction information shows that the number of onlookers for each target is about 540. However, until the end of the auction, no one bid, and eventually all 21 targets were auctioned off.
Less than a month later, on June 23, the above 21 million shares were put on the auction table again. Different from the last time, the starting price dropped to 62.16 million yuan, 20% lower than before. However, even if the shares were sold at a discount of 80%, the shares were finally auctioned off again because no one offered.
According to the auction information, the above 21 million shares of Bank of Qinghai were liquidated by the holders of Shenzhen Guanxin Investment Co., Ltd., with a shareholding ratio of 0.8213%.
The other identity of Guanxin Investment is "Lao Lai". According to the China Implementation Information Disclosure Network, Guanxin Investment has been executed 40 times from December 14, 2015 to June 14, 2022, of which 13 times have been dishonest.
It is worth mentioning that as early as December last year, 0.8213% equity of Bank of Qinghai held by Guanxin Investment had been auctioned twice in succession, and the price was exactly the same as the total starting price of the two split auctions in May and June this year. According to the auction information, on December 3 last year, the equity was auctioned for the first time at a starting price of 77.7 million yuan. A total of 3102 people watched, 3 people paid attention and reminded, and 0 people signed up. The auction finally failed; Then on December 30, the equity was sold again at a discount of 62.16 million yuan. A total of 4127 people watched, 2 people followed and reminded, and no one registered.
The history is always strikingly similar, but at that time, the equity did not choose a third auction. Next, on August 6, the equity of Bank of Qinghai will be auctioned for the third time in this round. The starting price will be 20% off the previous one, only 6.4% off the original price of 77.7 million yuan.
In the end, the market is paying attention to whether this equity can be successfully sold.
Bank equity is frequently put on the auction table
In fact, the equity of small and medium-sized banks has been auctioned frequently in recent years. Ali auction platform shows that up to now, there have been nearly 20000 bank equity auctions, of which only 1000 have been successful. Since this year, the market has been even bleaker. It is not uncommon for the stock rights to be auctioned at a low price and to be auctioned off miserably.
According to incomplete statistics, since this year, part of the equity of more than 10 rural commercial banks, including Guangdong Yangjiang Rural Commercial Bank, Zhuhai Rural Commercial Bank, Heyuan Zijin Rural Commercial Bank, Shenzhen Rural Commercial Bank, Guangfeng Rural Commercial Bank, etc., have been auctioned at a starting price of as low as 1 yuan, while the auction of some of the banks ended with "withdrawal of materials and cancellation of auction".
The insiders said that the "starting price of 1 yuan" is basically a gimmick, and even if the transaction is completed, it will be raised to a relatively reasonable price. Take Guangdong Yangjiang Rural Commercial Bank's 2626 shares auctioned on January 14 this year as an example. Although the auction started at 1 yuan, the final transaction price still reached 6001 yuan.
However, despite this, it is difficult to hide the dilemma that bank equity is becoming increasingly unpopular. What is more puzzling is that even the banks that are impacting the IPO, their equity has also been auctioned off.
Ali auction website shows that on June 15, 22362716 shares of Guangfa Bank held by Yixing Tongfeng Construction and Installation Engineering Co., Ltd. (hereinafter referred to as Tongfeng Construction) were auctioned at a starting price of 215 million yuan, about 9.63 yuan per share, and the auction deposit was 21 million yuan, but no one had registered as of the end of the auction; Then, on July 1, the equity was auctioned for a second time, and the auction was also aborted due to no bid.
Industry insiders told Caijing Tianxia Weekly that in general, the equity of companies to be listed is relatively more attractive. Once the company is successfully listed, the equity purchased will appreciate greatly. However, in recent years, there are not a few companies like Guangfa that plan to go public for many years or even decades and fail to succeed. Even the share prices of listed banks are also undervalued, which greatly reduces investors' enthusiasm for bank equity.
It is understood that Guangfa started to apply for listing in 2011, but has not yet succeeded. Its shares have been auctioned repeatedly at low prices in the auction market, and have been auctioned many times since this year alone. Previously, on April 12, 300000 shares of Guangfa Bank were auctioned at a price of 3.4890 million yuan, about 11.63 yuan per share, and finally failed to be auctioned; Then on May 24, the equity was auctioned again at 3.38433 million yuan, and the starting price per share dropped to about 11.28 yuan, but the result was still unsold.
Take those listed in January this year Lanzhou Bank For example, before listing, it also encountered the dilemma of streaming photos. On May 26, 2020, Jiayuguan Guangxin Commerce and Trade Co., Ltd. held 4 million shares of the bank in a public auction. There were 4396 onlookers, and only 2 people signed up. The market price was 16.84 million yuan, and the final transaction price was 11.788 million yuan, 30% lower than the market price; The 20 million shares of Lanzhou Bank held by Gansu Pingliang Urban Construction Development Group auctioned on August 22, 2020, and only one person signed up for 6537 times of onlookers. Finally, the transaction was completed at the starting price of 66.9 million yuan, 30% lower than the evaluation price of 95.5714 million yuan; On January 12 last year, Jiayuguan City Guangxin Commerce and Trade again auctioned its 28 million shares of Lanzhou Bank in 28 batches, once for every 1 million shares, and finally all of them were auctioned off because no bid was made.
Why Banking Stocks Are Not Popular
The large amount of equity is auctioned or even auctioned off, which undoubtedly means that the market recognition of bank value is relatively low. Industry insiders believe that, on the one hand, the decline in performance has led to a decline in the value of bank equity investment. Since the deleveraging in 2017, private small and medium-sized banks have been reducing and weakening in terms of capital, assets, specific business opportunities and business capabilities, and greatly weakening their self hematopoietic and operational capabilities; On the other hand, the quality of shareholders of small and medium-sized banks still needs to be improved. The main reason why most banks' shares are auctioned is that shareholders become executors, the capital chain is broken, and they are unable to pay debts.
Figure/Vision China Taking Bank of Qinghai as an example, three of its top 10 shareholders were listed as executors, including the first largest shareholder Qinghai State owned Assets Investment Management Co., Ltd., the eighth largest shareholder Qinghai Salt Lake Industry Co., Ltd., and the ninth largest shareholder Qinghai Sanyu Real Estate Group Co., Ltd., with a total shareholding of about 27.93%.
Behind the cold equity auction, the operating data of Bank of Qinghai is not optimistic. The bank's net interest income has shown negative growth for two consecutive years, with a decline of 40.51% and 13.75% in 2020 and 2021 respectively; At the same time, the net income of service charges and commissions has suffered losses for three consecutive years. In 2019 and 2020, the bank's net income of service charges and commissions was - 124 million yuan and - 119 million yuan, respectively. In 2021, its net income of service charges and commissions fell to - 167 million yuan, and the loss further expanded by 40.43%. In addition, the asset quality of Bank of Qinghai is also not very good. By the end of 2021, its non-performing loan ratio reached 2.95%, which is far higher than the average level of national commercial banks in the same period.
At the same time, there were serious omissions in the bank's internal control, and its former chairman was sentenced to 18 years for corruption and bribery. In February this year, the Intermediate People's Court of Haidong City, Qinghai Province issued a judgment of first instance. The defendant Wang Li committed the crime of corruption, bribery, misappropriation of public funds, abuse of power by state-owned enterprise personnel, and the crime of unidentified sources of huge amounts of property. She was sentenced to 18 years of fixed-term imprisonment and fined 1.1 million yuan.
In fact, there are not a few cases like Qinghai Bank, and the continuous auction of bank equity has also resulted in the market situation of oversupply, and the unsold auction has become the norm.
"The low valuation and frequent net breaking of the banking sector in recent years also reflect investors' pessimistic expectations of the investment prospects of bank shares." Industry insiders pointed out that the weak market competitiveness, operational standardization and the lack of internal control system of small and medium-sized banks determine that their equity investment value is relatively poor, while the equity of unlisted banks is low in liquidity, slow in return Long cycle and lower expected return make investors' enthusiasm for bank equity declining.
On the other hand, the tightening of supervision has increased the responsibilities and pressure of bank shareholders in terms of capital replenishment, while shareholders have less opportunities to obtain related loans from banks; At the same time, the improvement of regulatory policies puts forward higher requirements for the access threshold of bank shareholders. Some willing investors may not meet the qualification requirements, which also affects equity trading to some extent.
Share trading and account opening enjoy benefits, and draw 188 yuan as bonus, 100% win!
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Yu Kunhang
