Social security fund will reduce its holding of A-share company of Bank of Communications

category:Finance
 Social security fund will reduce its holding of A-share company of Bank of Communications


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According to the person in charge of BOCOM to zhongzhengjun, it is understood that this share reduction plan of social security foundation of BOCOM is based on its own asset allocation and investment business needs, and is only limited to part of A-share subscribed by participating in the non-public issuance of BOCOM in 2012.

This reduction plan is a conventional investment business arrangement, which does not affect the market-oriented business cooperation between the bank and bocom

Normal continuation of previous plan

As early as April 2019, the social security foundation plans to reduce its stake in Bank of communications by 2%, according to zhongzhengjun.

At that time, the specific reduction plan of the social security foundation was that within three months (before July 24, 2019), the cumulative reduction of no more than 743 million shares, that is, no more than 1% of the total share capital of BOCOM; within six months (before October 24, 2019), the cumulative reduction of no more than 1.49 billion shares, that is, no more than 2% of the total share capital of BOCOM.

However, until the end of the reduction period, the social security foundation did not reduce its stake in CCB. On the evening of October 24, 2019, the Bank of communications announced that within six months from April 24 to October 24, 2019, the social security foundation did not reduce its shares in the company.

Now, why does the social security foundation want to reduce its holdings?

The person in charge of BOCOM told zhongzhengjun that in April 2019, according to the securities regulatory rules, the social security foundation disclosed through bocom a plan to reduce its holdings by no more than 2% of the total number of common shares of BOCOM for a period of six months, which was not implemented within the validity period. This reduction plan is a normal continuation of the previous plan, but within the six-month plan validity period, the number of shares to be reduced to no more than 1% of the total number of common shares of BOCOM.

That is to say, the reduction is the normal continuation of the previous plan, but the proportion of reduction is reduced from 2% to 1%.

According to public information, in 2004, BOCOM introduced social security foundation as a domestic strategic investor, which subscribed 5.556 billion shares of BOCOM. After BOCOMs public listing, the social security foundation has increased its shareholding by 7.354 billion shares in total through participating in the companys share allotment, non-public issuance, secondary market share increase, company bonus shares, accepting the transfer of part of state-owned capital by the Ministry of finance, etc.

By the end of March 2020, the social security foundation has held 12.91 billion a shares and H shares of BOCOM, accounting for 17.38% of the total number of common shares issued by bocom. Among them, there are 3.848 billion a shares and 9.062 billion H shares.

Rich and prosperous

According to the announcement, the A-share of BOCOM that the social security foundation plans to reduce this time comes from the A-share that it participated in the non-public issuance of BOCOM in 2012. In 2012, the social security foundation, together with six other investors, subscribed 1.878 billion shares of non-public offering of BOCOM at a price of 4.55 yuan per share.

In May 2019, the social security foundation transferred 743 million a shares to the entrusted securities company, which is responsible for the implementation of the reduction.

If the social security foundation completed the reduction as planned, how would it affect the stock price? In recent years, the social security foundation has also reduced the shares of state-owned banks such as ICBC, ABC and BOC, but the long-term trend of the stock price is not significantly affected.

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According to the data, on April 3, 2019, the A-share price of BOCOM dropped by nearly 3%, but it has been rising continuously since then, and finally ended up at 6.3 yuan, up 0.32% all day.

In addition to the reduction of social security fund, the Bank of communications also attracted attention due to the change of management in the near future. On the afternoon of May 21, the Bank of communications held an enlarged meeting of the Party committee. Liu Jun was appointed Deputy Secretary of the Party committee of the Bank of communications and proposed to be vice chairman and President of the Bank of communications. If her qualifications are approved, Liu Jun will become the youngest president of the six major state-owned banks and the only post-70 president. After welcoming a president, BOCOM also sent away a business director. Xu Han, director of retail and private business of BOCOM, has recently left his post as vice president of ABC for a week, the China Securities Daily reported today from authoritative sources. Source: China Securities Journal Author: Huang Yiling editor in charge: Zhong Qiming_ NF5619

Welcome the post-70 president

In addition to the reduction of social security fund holdings, the Bank of communications also attracted attention due to the change of management in the near future.

On the afternoon of May 21, the Bank of communications held an enlarged meeting of the Party committee. Liu Jun was appointed Deputy Secretary of the Party committee of the Bank of communications and proposed to be vice chairman and President of the Bank of communications.

If her qualifications are approved, Liu Jun will become the youngest president of the six major state-owned banks and the only post-70 president.

After welcoming a president, BOCOM also sent away a business director. Xu Han, director of retail and private business of BOCOM, has recently left his post as vice president of ABC for a week, the China Securities Daily reported today from authoritative sources.