The CSRC asked the Bank of Zhengzhou about the measures to stabilize the stock price

category:Finance
 The CSRC asked the Bank of Zhengzhou about the measures to stabilize the stock price


In recent years, the Bank of Zhengzhou has been replenishing blood in various ways. In 2015, Bank of Zhengzhou raised 4.815 billion yuan through IPO in Hong Kong; in 2017, Bank of Zhengzhou raised 7.826 billion yuan through non-public issuance of preferred shares; in September 2018, Bank of Zhengzhou raised 2.727 billion yuan back to a.

However, the capital replenishment pressure of Bank of Zhengzhou is large. As of the third quarter of 2019, the capital adequacy ratio of Bank of Zhengzhou is 13.07%, the first level capital adequacy ratio is 10.49%, and the core first level capital adequacy ratio is 8.38%, approaching the red line of supervision.

12 questions of CSRC

On July 17 last year, the Bank of Zhengzhou announced that it plans to issue no more than 1 billion A-shares in private and raise no more than 6 billion yuan to supplement core tier one capital. The objects of the non-public offering are no more than ten (including ten) specific investors, including Zhengzhou holding, Bairui trust, Guoyuan trade, etc. Among them, Zhengzhou holding subscribes no less than 171.5 million shares; Bairui trust subscribes no more than 860 million yuan and no less than 660 million yuan; Guoyuan trade subscribes no more than 600 million yuan and no less than 450 million yuan.

This time, Zhengzhou holding, Bairui trust and Guoyuan trade are related legal persons of Bank of Zhengzhou. The CSRC requires the Bank of Zhengzhou to make a supplementary explanation as to whether the specific source of the subscription funds of the above-mentioned subscribers has the situation of raising, holding on behalf of others, structural arrangement or direct and indirect use of the funds of listed companies and related parties for this subscription.

The CSRC also requires the Bank of Zhengzhou to make a supplementary explanation on the control of the actual controller over the Bank of Zhengzhou, whether the relevant corporate governance mechanism has been established and perfected, whether the controlling shareholders and the actual controller have the risk of misappropriating the funds of the Bank of Zhengzhou to repay large debts at the end of the reporting period, the transaction between the Bank of Zhengzhou and the affiliated enterprises, and the abnormal transaction between the affiliated enterprises and the Bank of Zhengzhou Whether there is a situation of transferring benefits or profit manipulation through the non affiliated transactions; explain whether the relevant internal control system of various business management structures and decision-making procedures has been established, improved and effectively operated according to the regulations of the regulatory authorities.

It should be noted that the annual report of Bank of Zhengzhou shows that by the end of 2016, 2017 and 2018, the non-performing loan ratio was 1.31%, 1.5% and 2.47% respectively, showing an upward trend. According to the 2018 annual report of Bank of Zhengzhou, the year-end operating revenue of the bank increased by 9.43% year on year, but the net profit decreased by 27% year on year.

The CSRC requires the Bank of Zhengzhou to add that in the five level classification of loans, the basis and specific proportion of the classification of each type of loans are whether the non-performing loans are sufficient and complete, and whether the loans overdue for more than 90 days are all classified as non-performing loans; the causes and rationality of the rise of the non-performing loan rate, the risk prevention and response measures for the rise of the non-performing loan rate; the provisions in 2018 are repeated Compared with the previous year, the coverage rate decreased significantly, indicating the reason and rationality of the decrease of provision coverage rate, and whether there is a risk that further decline can not meet the regulatory indicators.

According to the third quarter report of 2019 of Bank of Zhengzhou, as of the end of September, the non-performing loan ratio of the bank was 2.38%, down 0.09 percentage points from the beginning of the year, still higher than the average level of listed banks. In the first three quarters of last year, the provision coverage rate of Bank of Zhengzhou was 160.01%, an increase of 5.17% over the beginning of the year, and the capital adequacy rate was 13.07%, down from the beginning of the year.

In addition, the CSRC requires the Bank of Zhengzhou to supplement many other businesses. For the risk of financial management business, the situation of the underlying assets of the main financial management investment business indicates that the operation of the underlying assets is significantly adverse and less than expected; for the risk related to the interbank business, the composition, amount, proportion, change and term structure of various interbank investments; for the investor involved in the risk bank, the provision for impairment of interbank investment is explained . impact on the companys financial situation and subsequent recovery; as for risks related to off balance sheet business, use on balance sheet assets to purchase off balance sheet assets, time, amount, transaction content, counterparty, compliance of related businesses and significant operational risks.

Breaking the net leads to stable stock price

As of the closing on January 6, a shares of the Bank of Zhengzhou closed at 4.67 yuan, lower than the net asset value of 4.72 yuan per share; Hong Kong shares closed at 2.850 Hong Kong dollars, slightly down 0.35%.

As early as December 18 last year, the Bank of Zhengzhou issued the plan for stabilizing the a share price of the company within three years after the initial public offering and listing of a shares of the Bank of Zhengzhou Co., Ltd. it said that from November 7, 2019 to December 4, 2019, the closing price of a shares of the Bank of Zhengzhou has been lower than the amount of 4.72 yuan of the latest audited net assets per share after ex dividend adjustment for 20 consecutive trading days (March 29, 2019 On June 19, 2019, the Bank of Zhengzhou disclosed the annual report of 2018, with the latest audited net asset per share of 4.87 yuan; on June 19, 2019, it implemented the equity distribution plan of 2018, with the latest audited net asset per share adjusted to 4.72 yuan after ex dividend), triggering measures to stabilize the stock price.

According to the announcement, it is planned to take measures to increase the holding of shares by Zhengzhou Finance Bureau, the largest shareholder, to stabilize the share price. Zhengzhou Municipal Bureau of Finance plans to increase the holding of shares of the Bank of Zhengzhou with the accumulated capital not less than 15% of the cash dividend of the Bank of Zhengzhou in the latest year as of the date of the announcement of the stable share price plan, i.e. the amount of shares increased is not less than 11.0454 million yuan.

In recent years, the banking sector continues to expand capacity, but breaking the net is also accompanied. According to wind, as of January 6, 2020, nearly 20 banks have broken the net.

According to the statistics of the reporter, in the year from January 2019 to January 2020, more than 10 banks have launched measures to stabilize the stock price. Including the announcement of Zheshang Bank on December 31, within 6 months from January 1, 2020, 13 people, including chairman Shen Renkang and president Xu Renyan, will increase their holding of the companys shares with their own funds receiving not less than 15% of the companys salary in the previous year, with a total amount of not less than 3.1664 million yuan. Chongqing Agricultural commercial bank, which broke the net one week after listing, issued a stable share price plan on December 10. 12 directors, supervisors and senior executives plan to increase their holding of the banks shares with their own funds no more than 15% of the salary (after tax) of the previous year, and there is no price range for this increase. According to a bank analyst, measures taken by banks and executives to stabilize share prices and increase their holdings can enhance investor confidence. But tens of millions, millions of funds, for tens of billions, hundreds of billions of banks in the market, play a very small role. At present, the most important thing for bank managers is not to advance as aggressively as in previous years, to do a good job in the fundamentals of banks and let time and market repair the valuation. Source: First Financial Editor: Guo Chenqi, nbj9931

According to the statistics of the reporter, in the year from January 2019 to January 2020, more than 10 banks have launched measures to stabilize the stock price. Including the announcement of Zheshang Bank on December 31, within 6 months from January 1, 2020, 13 people, including chairman Shen Renkang and president Xu Renyan, will increase their holding of the companys shares with their own funds receiving not less than 15% of the companys salary in the previous year, with a total amount of not less than 3.1664 million yuan.

Chongqing Agricultural commercial bank, which broke the net one week after listing, issued a stable share price plan on December 10. 12 directors, supervisors and senior executives plan to increase their holding of the banks shares with their own funds no more than 15% of the salary (after tax) of the previous year, and there is no price range for this increase.

According to a bank analyst, measures taken by banks and executives to stabilize share prices and increase their holdings can enhance investor confidence. But tens of millions, millions of funds, for tens of billions, hundreds of billions of banks in the market, play a very small role. At present, the most important thing for bank managers is not to advance as aggressively as in previous years, to do a good job in the fundamentals of banks and let time and market repair the valuation.