It seems that the bank's business is not easy to do this year.
As of now, the branches of Shanxi Bank, including multiple village outlets and three branch outlets of China Everbright Bank (all in Taiyuan) have been terminated.
Shuozhou Rural Commercial BankOn May 17, Huaxia Yuancun (Beijing) Technology Co., Ltd. (hereinafter referred to as "Huaxia Yuancun") held by Shuozhou Rural Commercial BankShuozhou Rural Commercial Bank100 million shares of equity will be auctioned publicly, with a starting price of 140 million yuan and a margin of 10 million yuan.
Shanxi Jiaocheng Rural Commercial BankShanxi Jiaocheng Rural Commercial Bank14.7 million shares are being sold publicly. The equity accounts for 4.90% of the total share capital of Shanxi Jiaocheng Rural Commercial Bank, with an appraisal price of 13.818 million yuan, equivalent to about 0.94 yuan per share, while the starting price is 7.75 million yuan, equivalent to only 0.53 yuan per share, which is 56% off the appraisal price.
It is worth noting that before this, the equity has been unsold twice!
Above picture source: Alibaba Auction
ShanXijiaocheng Rural Commercial Bank was restructured from the Jiaocheng County Rural Credit Cooperative on August 7, 2015, with a registered capital of 300 million yuan.
Related information shows: As of November 2023, the total assets of Shanxi Jiaocheng Rural Commercial Bank were 8035.6995 million yuan, the liabilities were 751.42924 million yuan, the owner's equity was 521.4071 million yuan, and the net profit reached 7.6036 million yuan. The shares auctioned are held by Shanxi Huiping Weitong as the fifth largest shareholder. The relevant shares were frozen due to a contract dispute with Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd.
Public data shows that from 2014 to December 2022, more than 20,000 bank equity was forcibly auctioned on the two major judicial auction platforms of Alibaba and JD.com, with a total valuation of more than 100 billion yuan in one auction, involving 1,325 banks. Among them, Rural Commercial Bank equity auctions are particularly frequent, accounting for more than 80%.
Some experts analyzed that the bank equity auction wave isPolicy compliance pressure, economic cycle impact, and bank governance defectsa product of the superposition of three factors, and rural commercial banks have become the centralized release point of risk due to the dispersed historical equity, weak shareholder resistance to risks, and strong regional economic dependence.
The current market's cold attitude towards rural commercial banks' equity is essentially a long-term question on its corporate governance and asset quality. Only by improving operating efficiency and risk control capabilities from the root causes can we reverse investor expectations.
