Securities Times reporter Huo Li
Recently, many cases of local state-owned assets taking over the equity of small and medium-sized banks reappeared.
Data shows that in 2023, there will be more than 100 equity changes in small and medium-sized banks. Since this year, the structural reform and restructuring of small and medium-sized banks have continued. There have been nearly 70 approved cases of local small and medium-sized banks' equity changes. In addition, there have been dozens of cases of central enterprises and private enterprises transferring the equity of small and medium-sized banks.
On the whole, an obvious feature of the above equity changes of small and medium-sized banks is that the equity is more concentrated. The equity of regional urban rural commercial banks is concentrated in the local state-owned assets, and the equity of rural banks is concentrated in the main originator banks.
Specifically, some state-owned enterprises gradually cleaned up the equity of regional banks due to their focus on the main business, and some private enterprises withdrew from the equity of local regional banks due to their own business adjustment. The transferee of the above equity is mostly local state-owned assets. In addition, local finance transferred the equity of regional banks to the local financial control platform for free. At the same time, with the implementation of the regulatory orientation of small and medium-sized banks' reform of chemical insurance, the main initiators have improved their main responsibilities, and have also taken the initiative to increase their holdings in rural banks.
Local state-owned capital plus order
In the middle of May this year, the document of Zhejiang Regulatory Bureau of the State Financial Supervision and Administration showed that the bureau agreed Zhejiang Keqiao Transformation and Upgrading Industry Fund Co., Ltd. (hereinafter referred to as "Transformation and Upgrading Company") to accept 288 million shares of Shaoxing Bank held by Jinggong Group and 34.632 million shares of Shaoxing Zhongfu Holding, After the transfer, the transformation and upgrading company holds 12.94% of the shares of Shaoxing Bank, which will directly rise to the second largest shareholder.
Previously, the equity of Shaoxing Bank held by the above two transferors was pledged. Among them, Jinggong Group was once one of the "Top 500 Private Enterprises", but declared bankruptcy around 2000. Since then, the equity of several banks held by this company has been auctioned or pledged by the judiciary.
In the above case, the transformation and upgrading company is a local state-owned enterprise, wholly-owned by Shaoxing Keqiao District Financial Holding Co., Ltd., and the actual controller is Keqiao District Finance Bureau.
The transformation and upgrading companies have already taken action to increase their holdings in local regional banks. Before increasing its shareholding in Shaoxing Bank, the transformation and upgrading company just transferred relevant equity in February this year, becoming Concord Bank The largest shareholder. In December 2023, Shaoxing Keqiao District State owned Assets Investment and Management Group transferred about 135 million shares of its total equity to the transformation and upgrading company, accounting for 3.82% of the total equity of Bank of Shaoxing.
Since 2024, a number of central state-owned enterprises have successively listed their shares in small and medium-sized banks for transfer. For example, COFCO Group, China Salt Qinghai Kunlun Soda Industry Co., Ltd., China Aviation Industry Group, China Coal Group Shanxi Huayu Energy Co., Ltd., China Machinery Industry Group subsidiary Jingwei Textile Machinery, Hainan Port and Shipping Holdings and other enterprises listed their shares in financial institutions, including Huishang Bank, Qinghai Chaidamu Rural Commercial Bank, Jiangsu Baoying Rural Commercial Bank, Shanxi Shanyin Rural Commercial Bank Bank of Tibet, Bank of Hainan and other banks.
This round of transfer of shares of regional banks by central state-owned enterprises has accelerated since the end of 2023. This is because in September 2023, the State owned Assets Supervision and Administration Commission of the State Council issued the Interim Measures for the Administration of the Participation of State owned Enterprises, which requires central enterprises to focus on their main responsibilities and withdraw from participating investments that are seriously inconsistent with the responsibilities of state-owned enterprises, do not have competitive advantages, are risky, and are difficult to master.
In this context, central state-owned enterprises have recently accelerated the transfer of their financial equity holdings. Most of the financial equity holders sold are local small and medium-sized banks and small and medium-sized insurance institutions, as well as securities companies, trusts, leasing companies and other financial institutions. For example, in 2023, China Datang Group Finance Co., Ltd. will transfer its equity in Fudian Bank, and Benxi Steel Group will transfer its equity in Benxi Bank, Yituo Shares Yituo Diesel Engine, a holding subsidiary of Yituo Diesel Engine Co., Ltd., was listed to transfer its equity in Zhongyuan Bank, and Rainbow Group Listing transfer of shares of Western Trust Chinese ships Industrial Group transferred the equity of Huatai Insurance.
Despite various reasons, the common feature of the above cases is that the equity of regional banks tends to be concentrated in local state-owned assets.
Shareholders' qualification is tested
It is worth mentioning that it is not easy to find a receiver for the current equity transfer of regional banks.
From the perspective of the performance of small and medium-sized banks themselves, due to the narrowing of interest margin in the banking industry, the decline of revenue, the unsatisfactory dividend distribution and the near stagnation of the listing process of regional banks, there are few equity takeovers at present. There are even some small and medium-sized banks whose shares have been listed and transferred for many times.
At the same time, local state-owned assets have become the more active part of the regional banks' equity takeover, adding factors such as the regulatory authority's approval of the bank's shareholders' qualification and the huge amount of capital required by the takeover party.
In terms of shareholder qualification, there were cases of Zhejiang Chun'an Rural Commercial Bank, Linyi Hedong Qishang Village Bank and Ningxia Pengyang Rural Commercial Bank where the application for equity change was rejected by the regulatory authorities last year, all of which were related to factors such as the financial qualification of the proposed transferee not meeting the requirements, such as the proportion of net assets in the total assets, the proportion of equity investment balance in the net assets and other qualifications.
In addition to the above-mentioned situations where the state-owned assets in the region where the regional banks are located actively contribute to the takeover, there are also some small and medium-sized banks whose equity transfer is free transfer, mostly from state-owned assets or local finance to local relevant platforms. For example, in May this year, with the regulatory approval, Tibet State owned Capital Investment and Operation Co., Ltd. transferred 237 million shares (11.86% of the total share capital) of the Bank of Tibet to the Finance Department of the Tibet Autonomous Region for free; 703 million shares (11.86% of the total share capital) will be held by Hangzhou Municipal Finance Bureau as approved by the regulatory authority in March this year Bank of Hangzhou The shares were transferred to Hangzhou Caikai Investment Group.
Village Bank
Further concentration of equity of the issuing bank
In the list of approved equity changes, village banks are the most common. Rural banks are an important part of small and medium-sized banks' reform of insurance. Due to the large number and obvious differentiation of rural banks, their structural reform and restructuring models are also the largest.
Since April this year, the equity change of Anlong Xinglong Village Bank, Qinglong Xing'an Village Bank, Chongqing Wuxi Bank of China Fudeng Village Bank, Hebei Fengning Bank of China Fudeng Village Bank, Longchuan Ronghe Village Bank, Zhuhai Xiangzhou Xingfu Village Bank, Qingdao Jiaozhou Zhongcheng Village Bank and other village banks has been approved successively. Data shows that since 2024, there have been dozens of cases of equity changes in rural banks.
Most of the equity changes of village banks are increased by the main issuing bank, and most of the transferors are local enterprises or natural person shareholders. For example, this year, Zhejiang Wenzhou Longwan Rural Commercial Bank transferred the equity of three village banks including Jiujiang Hengtong Village Bank from several natural person shareholders.
For another example, in January this year, Ruifeng Bank announced that it had transferred the shares held by some legal person shareholders of Shengzhou Ruifeng Rural Bank. After the completion of shareholding increase, Ruifeng Bank's cumulative shareholding in Shengzhou Ruifeng Rural Bank rose to 51.99%. Ruifeng Bank said that after this increase in the shares of Shengzhou Ruifeng Rural Bank, it will further strengthen the responsibilities of the main bank and provide strong support in human resources, training, capital and other aspects.
In addition to being increased by the Main Development Bank, there are also village banks that have been merged into branches by the Main Development Bank, or dissolved and exited directly. In the absorption and merger, "village to branch" is the most common. For example, in April this year, with the approval of the regulatory department, Hengfeng Bank acquired Chongqing Jiangbei Hengfeng Rural Bank and established it as Chongqing Dashiba Sub branch of Hengfeng Bank.
The "village to branch" project first appeared this year. In April this year, Guangdong Nanyue Bank acquired the Nanyue Village Bank in Zhongshan Ancient Town and established it as Zhongshan Branch of Guangdong Nanyue Bank to undertake all its assets and liabilities, institutional outlets, rights and obligations.
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