However, the fund emperor also found that the stock rights of banks once regarded as fragrant baboons have different destinies. Some urban, agricultural and village banks have been auctioned for many times at a discount price, but no one has paid attention to them. Some banks have been sought after by the stock rights auction, which is several times more successful than the initial auction price. What is the reason behind this? Why have so many bank shares been auctioned this year? And why is there such a big gap in attention? Lets follow the fund gentleman.
Online Auction of Equity Rights of Billions of Banks
Including listed and prospective banks are coming.
The fund gentleman inquired about Alis judicial auction platform. There were many auctions involving bank equity in October. According to incomplete statistics, there were more than 20 bids with an initial amount of more than 10 million.
For example, 100 million shares held by Beijing Tianrui Xiaguang Science and Technology Development Co., Ltd. that are not pledged by Zhejiang Fuzhou Commercial Bank will be auctioned on October 20, with a starting price of 440 million yuan. How to calculate the price? At the end of 2018, the net asset per share of the bank was 476 million yuan per share. The market reference price of the 100 million shares was 476 million yuan, while the auction price of 440 million yuan was 92.44% of the reference price.
It is worth noting that the Shanghai Rural Commercial Bank, which is going to be listed for A-share IPO, is the only agricultural and commercial bank in Shanghai. At the end of 2018, its assets amounted to 833.7 billion yuan. Some of its shares will also be auctioned on October 15. The 16 million shares of Shanghai Agricultural and Commercial Bank held by its shareholder, Shanghai Jilian Investment Management Co., Ltd., are valued at 123.52 billion yuan and the initial auction price is 78.644 million yuan. The discount is relatively large. The fund gentleman found that the calculation of its evaluation price is a combination of two methods: the market method, combined with the average market-to-net ratio of five listed agricultural and commercial banks, multiplied by the net assets per share of the bank; and the cost method, given a certain weight to calculate.
There is also a bank to be IPO, the 45 million shares of Anhui Maanshan Agricultural and Commercial Bank will be auctioned again on October 28 after the auction on April 12 this year. The auction period is three days. The owners of these shares are Shanghai Weidu Industrial Development Co., Ltd., which was sealed up by the First Intermediate Peoples Court of Shanghai. It is worth noting that the evaluation and auction price of this auction are much lower than that of the previous auction. On April 12, the evaluation of the equity is 145 million, and the auction price is 131 million. But on October 28, the auction became 103.5 million and the starting price is 72.45 million.
There are also two H-share listed companies, Zhongyuan Bank and Jiangxi Bank. Shanxi Xinyuan Brothers Industrial Group Co., Ltd.s 118 million shares of Central Plains Bank completed the bidding on October 9. The initial bidding price was 2233.3 million yuan, which attracted 2533 spectators. There was a bidding record and the bottom price was closed. In addition, the Central Plains Bank has several equity bidding events this year, including the second auction of 300,000 shares and 130,000 shares to be held on October 28. According to statistics, the banks stock rights have been auctioned dozens of times before, and many of them failed to sell.
Jiangxi Bank, which just landed in Hong Kong stock market in June last year, did not auction well. On October 8, 3.737 million shares of Jiangxi Bank held by Jingdezhen Jingdong Ceramic Group Co., Ltd. were auctioned. The initial bid price was 14.396 million yuan, which was discounted from the appraisal price. However, no one paid attention to the auction, and the second auction went down. According to the rules of Ali Judicial Auction Platform, if the two auctions fail to close, they will be changed to sell. The bidding period will be extended from 1 day to 60 days, and the shares of Jiangxi Bank will be sold on October 26.
The auction of Shanxi Puda Coal Industry Group Co., Ltd.s 1.53% equity (including a dividend of 20 million yuan) of Shanxi Merchants Bank was not so smooth. From October 3 to October 4, the initial auction price was 184.5 million yuan, but ultimately no one participated in the auction.
There have been so many bank equity auctions recently that thoughtful big boys can pay close attention and choose high-quality assets to sell.
Of course, it should be noted that to become a shareholder of a bank, it is necessary to have the relevant qualifications prescribed by the CIRC. In accordance with Article 39 of the Measures for the Implementation of Administrative Licensing Matters for Chinese-funded Commercial Banks of the China Banking Insurance Regulatory Commission (Amendment 2018), the conditions for bidders to acquire shareholder qualification are the same as those for the sponsors of the newly established legal entity of Chinese-funded commercial banks as stipulated in Articles 9 to 13, and shall be completed in accordance with the relevant provisions of the Measures for the Administration of Associated Transactions between Commercial Banks and Insiders and Shareholders. Disclosure of the relationship in a complete and true manner. In addition, the bidders acquisition of shareholder qualification shall also conform to the Interim Measures for the administration of equity of commercial banks and other relevant provisions. Therefore, before participating in the bank equity auction, we need to consult the relevant banks board office whether it meets the relevant bidding qualifications.
Bank Equity Auction Differentiates Greatly
Fund Jun found that although there are many bank equity auctions this year, mainly involving some small and medium-sized banks such as city commercial banks, agricultural commercial banks and village banks, the auctions in different regions, different banks and different prices present a situation of ice and fire double sky. Some bank equity auctions are highly sought after by the market, while others are ignored, with multiple auctions. Reduce the price to sell. There is a big difference between sweet baked pork and hot potato.
For example, from Oct. 8 to Oct. 9, an auction of 65937 shares held by Fu Mou of Guangdong Gaoming Agricultural and Commercial Bank attracted 10 people to sign up. The initial bid price was 221,000 yuan and the evaluation price was 314,500 yuan. After 85 rounds of bidding, the final deal was 473,000 yuan, more than double the initial bid price.
In addition, Xu Mou holds 185880 original shares of Yuhang Rural Commercial Bank, with an initial bid price of 1.79 million yuan and an evaluation price of 1.685 million yuan. Five people have signed up. After 50 rounds of bidding, the final deal was 16.69 million yuan.
In addition, 40 million shares of Harbin Agricultural and Commercial Bank are held by Heilongjiang Far East Wood Industry Co., Ltd. with an assessment value of 63.92 million yuan. The initial auction price is 59.4456 million yuan. This months (October 6-October 7) auction price is 56.473 million yuan, with a reduction of about 3 million yuan, but no one has asked for it.
As to why some small and medium-sized banksequity is popular and some banks equity is neglected, the insiders analyze that this has something to do with the amount and value of the corresponding equity. For example, some bank equity auctions cost hundreds of millions of yuan, which deters investors. In addition, the operation of small and medium-sized banks is vulnerable to the impact of regional economic conditions, so the better economic operation of provinces and regions, the overall operation of the banking industry, profitability, equity is more popular. In addition, in some places, the liquidity of equity of small and medium-sized banks is poor, and the equity of judicial auction is small and scattered, with only the right to dividend and vote.
Some city businessmen said that the current banking industry differentiation is increasing, the era of banks lying on their back to make money has passed, the number of banks is more and more, and competition is more and more fierce; in the economic downturn environment, some banks have narrower profit margins and scarcer high-quality targets for better operation.
Therefore, if investors intend to buy shares in banks, they may need to pay attention and examine carefully in the selection process.
Bank equity is frequently auctioned
What is the reason behind it?
Why will the number and scale of bank equity auctions increase significantly this year, much higher than in previous years? The fund gentleman synthesizes the viewpoints of the professionals to analyze and analyze.
First of all, we can see that behind the judicial auction of the original shareholdersshares in banks, most of the cases are that they fall into judicial disputes and fail to fulfill their legal obligations after being listed as the executors. Finally, they are ordered by the court to auction their property, such as private enterprises and natural shareholders in some places. According to industry analysis, in recent years, the downward pressure of the economy has increased, and some bank shareholders have high debts and poor management, resulting in economic and financial problems, leading to the auction of their bank shares.
For example, the execution ruling of Shanxi Yuncheng Intermediate Court shows that the shareholder of Central Plains Bank, Shanxi Xinyuan Brothers Industrial Group, etc., has been caught in a dispute over loan contracts. The applicant, Shanxi Yuncheng Agricultural and Commercial Bank, requests to pay 200 million yuan of loan and interest. Therefore, the court frozen its ownership of Central Plains Bank, related dividends and non-performing assets package.
In addition, the regulatory authorities are very concerned about the change of bank ownership structure, and rectify the financial order. The Interim Measures for the Equity Management of Commercial Banks promulgated in 2018 clearly states that the number of commercial banks with the same investor and its affiliates and concerted actors as the main shareholders shall not exceed two, or the number of controlling commercial banks shall not exceed one. Bank shareholders who do not meet the requirements are also stepping up the withdrawal of part of their shareholdings.
As to whether the auction bank equity will have an impact on the operation of the bank, most insiders believe that the impact is limited. Because the shareholders of small and medium-sized banks mostly aim at financial investment, their equity transfer does not form the transfer of bank control rights, which has little impact on bank corporate governance and business operation.
Some professionals also say that the equity auction of small and medium-sized banks has limited impact on the banks themselves. On the one hand, the proportion of shares auctioned through public auction platform is small, and the small proportion of transactions can not affect the actual control rights of banks, and will not have a substantive impact on the operation and management of banks; at the same time, the regulatory authorities maintain a high degree of concern about the changes in the ownership structure of banks.
Source: Yang Bin_NF4368, Responsible Editor of China Foundation Newspaper