IPO Of The Second City Commercial Bank In A Share Year

The IPO of banks will accelerate significantly in the second half of 2020.

After Xiamen Bank successfully held the meeting this year, another A-share IPO bank is about to accept the examination and approval of the issuance and Examination Commission: more than two years after the submission of the prospectus, the Bank of Chongqing will go to the meeting on August 27.

If the meeting goes smoothly, Bank of Chongqing will become the second a + H listed bank in Chongqing, the third a + H listed city commercial bank after Bank of Zhengzhou and Bank of Qingdao, and the 15th a + H-share bank in China.

The background of shareholders is complex

Founded in 1996, Bank of Chongqing is the earliest local joint-stock commercial bank in the western region and the upper reaches of the Yangtze River. Its predecessor was Chongqing Urban Cooperative Bank, which was jointly established by 37 urban credit cooperatives and municipal associations, 10 local finance bureaus and 39 enterprises and institutions; in March 1998, it was renamed Chongqing commercial bank with the approval of the people's Bank of China; in August 2007, it was renamed the Bank of Chongqing with the approval of China Banking Regulatory Commission.

The history of Chongqing bank is quite complicated.

After 233 share changes, the Bank of Chongqing has formed the top ten shareholder structure of Chongqing Yufu, Daxin bank, Lifan shares, SAIC Group, Fude life insurance, Chongqing Luqiao, Chongqing real estate, Chongqing water conservancy, Beijing Founder, Chongqing beiheng.

Corresponding to the complicated historical evolution, the background of several shareholders of Chongqing bank is also full of controversy.

Chongqing Yufu, the largest shareholder of Chongqing Yufu, became the owner because in 2006, as a condition for Chongqing Yufu to purchase and dispose of non-performing assets, the Bank of Chongqing issued 400 million additional shares to Chongqing Yufu twice.

It is worth noting that the Bank of Chongqing decided to issue additional capital to Chongqing Yufu through negotiation at the price of 1 yuan per share, which failed to perform the asset appraisal procedure.

However, it said that the private placement was carried out in accordance with the approval of Chongqing Municipal People's government and China Banking Regulatory Commission, and the capital verification procedures were carried out in accordance with the law, and the industrial and commercial registration and filing procedures were handled. Three years later, on May 7, 2009, Chongqing Municipal People's government issued the letter of confirmation on the establishment of Bank of Chongqing Co., Ltd., confirming that "the Bank of Chongqing Co., Ltd. reported to Chongqing municipal government on the establishment, previous capital increase, equity transfer and custody, and subscription (or transfer) of shares by senior executives and employees The report is true. ". At the same time, the Chongqing Municipal People's government also confirmed that "in case of any dispute arising from the above matters in the future, the Chongqing Municipal Government shall be responsible for the unified and coordinated settlement".

"Although the bank's directional issuance of 400 million shares to Chongqing Yufu failed to perform the asset appraisal procedures, the capital increase price was determined according to the restructuring plan approved by Chongqing Municipal People's government and China Banking Regulatory Commission." Bank of Chongqing said.

In 2013, Bank of Chongqing landed on the Hong Kong Stock Exchange and became the first mainland city commercial bank to Land Hong Kong shares; in 2015, it issued additional H shares and raised HK $3.227 billion, all of which were used to supplement capital.

However, one of the objects of this additional offering has not yet obtained the approval of shareholder qualification.

On December 23, 2015, Bank of Chongqing issued 422 million H shares to SAIC Group (held through its wholly-owned subsidiary SAIC Hong Kong), Fude life life life and its wholly-owned subsidiary Fude Resources Investment Holding Group Co., Ltd., with the placement price of HK $7.65 per share, increasing the registered capital by RMB 422 million.

Among them, Fude life insurance holds 150 million H shares of Bank of Chongqing, and Fude Resources Investment Holding Group Co., Ltd., a wholly-owned subsidiary of Fude life life life, holds 67.5702 million H shares of Bank of Chongqing.

In the pre disclosure version of the prospectus issued on June 15, 2018, Bank of Chongqing admitted that Fude life life insurance had not obtained the approval of shareholder qualification. The CSRC has also paid attention to the feedback.

The 21st century economic report reporter consulted the updated version of the pre disclosure of the prospectus released on May 21, 2019, and found that as of the signing date of the offering, Fude life life insurance had not obtained the approval of shareholder qualification.

Lifan shares (601777. Sh, now referred to as * ST Lifan), the third largest shareholder of Bank of Chongqing, is in the process of bankruptcy and reorganization. As of the first half of 2019, it has loaned 1.572 billion yuan from Bank of Chongqing.

On the evening of August 7, Lifan Co., Ltd. announced that Chongqing Lifan Holding Co., Ltd. (hereinafter referred to as "Lifan Holdings") applied to Chongqing No.5 intermediate people's court for judicial restructuring on the ground that it could not pay off its due debts and its assets were insufficient to pay off all debts.

In addition, Beida Fangzheng, the ninth largest shareholder of Chongqing bank, is also in bankruptcy reorganization.

The listing of small and medium sized banks accelerated

After the first half of the year, the IPO of the bank increased significantly in the second half of 2020. Since July 2020, Bohai bank has landed in the Hong Kong stock exchange, and Xiamen bank has successfully passed the meeting.

Since last year, the small and medium-sized banks have witnessed a wave of reform and development. Whether the small and medium-sized banks will continue to develop well from the reform and development of small and medium-sized banks is worth paying attention to.

Wind data shows that, so far, in addition to Chongqing bank, there are 17 banks queuing up for A-share IPO, including 7 city commercial banks.

From the audit progress, 14 banks including Shaoxing Ruifeng agricultural commercial bank and Qilu bank are in the state of "pre disclosure and update", Chongqing Three Gorges bank is in the "accepted" state, Huzhou bank and Guangzhou bank are in "feedback status".

The above-mentioned queuing banks are basically urban rural commercial banks. Analysts believe that small and medium-sized banks as the main force to serve small and medium-sized enterprises, the improvement of capital adequacy ratio can better support the financing of small and micro enterprises. Supported by the policy, the listed banks are expected to continue to expand their capacity and the pace of approval may be further accelerated.

"On the one hand, the acceleration of small and medium-sized banks' listing has policy support. Small and medium-sized banks do have the need to expand capital. Securitization is a very important way to expand capital demand. In addition, listing will improve the brand and market capacity of small and medium-sized banks, and improve the corporate governance structure of small and medium-sized banks. " Professor Pan Helin, executive director of the Digital Economy Research Institute of Central South University of Finance and law, told the 21st century economic reporter on August 24.

It can be seen from the main problems raised by the meeting of the national development and Examination Commission on Xiamen bank that the quality of bank assets is the focus of IPO.

According to the prospectus of Bank of Guangzhou, by the end of 2019, the average non-performing rate of A-share listed banks was 1.42%, and that of A-share listed city commercial banks was 1.37%.

In terms of asset quality, at the end of the first quarter, the balance of non-performing loans of Chongqing bank was 3.263 billion yuan, an increase of 132 million yuan compared with the end of the previous year; the ratio of non-performing loans was 1.27%, which was the same as that at the end of the previous year; the provision coverage rate was 292.31%, up 12.48 percentage points compared with the end of last year.

According to the prospectus, the Bank of Chongqing plans to issue no more than 781 million shares, accounting for 19.98% of the total number of shares after the completion of this offering. After deducting the issuance expenses, the raised funds will be used to enrich the bank's core tier one capital and improve the capital adequacy ratio.

By the end of the first quarter of 2020, the core tier 1 capital adequacy ratio of Bank of Chongqing is 8.70%, the tier 1 capital adequacy ratio is 9.98%, and the capital adequacy ratio is 13.10%.

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