Home » Jiangxi Bank’s share price was cut in half and market value shrank significantly | Luo Yan | China Banking Regulatory Bureau | Non-performing loan ratio

Jiangxi Bank’s share price was cut in half and market value shrank significantly | Luo Yan | China Banking Regulatory Bureau | Non-performing loan ratio

by admin

[Epoch Times October 18, 2021]Since its listing, Jiangxi Bank’s stock price has been declining, and even frequently staged “flash crashes”. At present, the share price of Jiangxi Bank is almost “halved” compared to the offer price, and its market value has shrunk to HK$20.5 billion.

Jiangxi Bank issued an announcement on the evening of October 15 to remove Luo Yan as executive director, vice chairman, member of the strategic committee of the board of directors, and member of the remuneration and nomination committee.

Public information shows that Luo Yan joined Jiangxi Bank in February 2018 as the bank’s president. Before that, Luo Yan worked successively at Bank of Communications, China Merchants Bank, China CITIC Bank, and Guangdong Nanyue Bank after graduating in 1990.

Jiangxi Bank is a joint-stock commercial bank in China, established in December 2015. On the eve of Luo Yan’s appointment at Jiangxi Bank, Jiangxi Banking Regulatory Bureau approved the bank’s H-share issuance and listing application in January 2018. Five months later, Jiangxi Bank launched a public offering in Hong Kong, becoming the first listed bank in Jiangxi Province and the first company listed overseas since the implementation of the “Ying Shan Hong” operation in Jiangxi Province.

At that time, Jiangxi Bank publicly issued 1.346 billion shares, raising a net amount of 7.26 billion Hong Kong dollars, all of which was used to supplement core Tier 1 capital.

After Jiangxi Bank went public, its stock price has fallen all the way. According to 21 Economic Net, as of the close of October 15th, Jiangxi Bank’s stock price closed at HK$3.41 per share, which was almost “halved” compared to the offer price of HK$6.39 per share, and its market value had shrunk to HK$20.5 billion.

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Jiangxi Bank’s performance has continued to be sluggish in recent years. The bank’s net profit continued to decline from 2018 to 2020, reaching 2.771 billion yuan, 2.109 billion yuan and 1.904 billion yuan, down 4.92%, 23.89% and 9.68% year-on-year. Especially in 2020, the bank’s revenue has experienced negative growth for the first time since its listing, with a decline of more than 20%.

In the past three years, the asset quality of Jiangxi Bank has deteriorated significantly compared with that before listing. Data show that from 2018 to 2019, the bank’s non-performing loan ratio rose from 1.91% to 2.26%.

In addition, in September last year, a “letter for help” written by China Evergrande Group to the Guangdong Provincial Government of the Communist Party of China was circulated on the Internet. The letter mentioned that as of June 30, 2020, Evergrande’s interest-bearing liabilities involved 128 banking financial institutions, and Jiangxi Bank ranked 24th.

Evergrande’s interest-bearing liabilities involve 128 banking financial institutions, while Jiangxi Bank ranks 24th. (webpage Screenshot)

Editor in charge: Li Bing

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