the starting price is 1 yuan, but no one is interested! more than 440 bank shares are being auctioned or will be auctioned this month
2024-09-19
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china business news (reporter wang tongxu)the equity of small and medium-sized banks, which were once popular with capital, are now frequently failing to be sold.
since the beginning of this year, bank equity has frequently appeared on major auction platforms. on september 18, a reporter from china business news searched the alibaba auction platform with the keyword "bank equity" and found that from september 1 to october 1 alone, more than 440 bank equity lots were being auctioned or were about to be auctioned. specifically, the auction targets were mostly equity of small and medium-sized banks such as city commercial banks, rural commercial banks and private banks. it should be noted that after the equity of many small and medium-sized banks was listed, no one was interested and they eventually failed to be sold.
yuan shuai, founder of the new wisdom new productivity living room, told china business news that in terms of macroeconomics, the current net interest margin of the banking industry is low, and the profit margins of small and medium-sized banks are under pressure, affecting investor confidence. in terms of the banking environment, small and medium-sized banks are small in scale, relatively weak in risk resistance, and highly dependent on regional economic development, with greater operating pressure. in addition, the prices of some auction items are too high, exceeding investors' psychological expectations.
people pass by the bank billboard. (photo provided by cnsphoto)
small and medium-sized bank equity auctions met with a cold reception
on september 17, a rural commercial bank in zhejiang province transferred 38,473 shares. although one person signed up, the transaction ultimately failed because no one bid. this was the second time the bank's equity transfer had failed in the past month.
there are many small and medium-sized bank shares that are rarely sought after. especially for large-value targets, it is quite difficult to transfer them.
for example, on september 18, nearly 44 million shares of a rural commercial bank in hubei failed to be sold because no one bid. this was the second time this year that the shares were put on the "auction stage" and failed to be sold. the starting price of the previous auction was 144.7 million yuan, and the starting price of the second auction was 115.76 million yuan, which was 80% off the first auction price. at the same time, the company holding the shares has gone bankrupt.
in contrast, it is relatively easy to transfer targets with small amounts and stable dividends.
on september 16, 5,000 shares of a city commercial bank in hunan received 28 bids, with a starting price of 1 yuan and a final transaction price of 28,001 yuan. this equity transfer was very popular, with 11 people signing up, 175 people setting reminders, and more than 1,800 people watching. it is worth noting that the announcement shows that the bank has had stable dividends in the past five years.
in addition, the reporter saw that in order to successfully transfer equity, many small and medium-sized banks that are about to start auctioning equity have "offered" special price stocks with a starting price of 1 yuan, but no one has signed up yet.
it is reported that many equity transfer announcements will introduce the bank's fundamentals, including asset size, profitability, net value per share, dividends in recent years, etc.
industry insiders said that buyers are more concerned about the bank's own operating conditions and development prospects, and dividends are an indicator of the bank's operating conditions. in the context of falling interest rates, the comprehensive dividend rates of some small and medium-sized banks are more competitive than most financial management and deposit products. however, the current dividend stability of most small and medium-sized banks has declined, and the number of bonus shares has also decreased.
"the frequent failure of small and medium-sized bank equity to be sold is ultimately due to the poor overall operating performance of the banking industry. as economic growth slows, the banking industry's interest margins narrow and non-performing loan ratios rise. both profitability and asset quality have been greatly affected, and small and medium-sized banks with relatively weaker competitiveness have been hit harder." wu zewei, a researcher at the star map financial research institute, told reporters.
yuan shuai said that if the equity is auctioned off by the court and fails to be sold, it will have a certain impact on the reputation of the bank and will also generate the risk of a decline in valuation. the phenomenon of failure to be auctioned may affect the stability of existing shareholders and is not conducive to the long-term development of the bank. in the future, the auction market for small and medium-sized bank equity will continue to show a differentiated trend. the equity of high-quality small and medium-sized banks will still be popular in the market, while the equity of some banks with poor operating conditions may continue to be unpopular.
weak core competitiveness is the main reason
experts believe that in addition to being affected by the poor overall operating performance of the banking industry, small and medium-sized banks themselves also have a lot of areas that need to be improved.
"what cannot be ignored is that the internal governance of some small and medium-sized banks is not perfect and the management is extensive, which leads investors to be cautious about their future development prospects. there are uncertainties in the profit growth and asset quality of some small and medium-sized banks, which affect investors' decisions. not only that, in recent years, some small and medium-sized banks have frequently experienced risk events, and investors are keeping a wait-and-see attitude towards holding shares in small and medium-sized banks." yuan shuai said.
wen bin, chief economist of minsheng bank, said that by the end of the second quarter of 2024, the asset profit margins of city commercial banks and rural commercial banks were 0.63% and 0.65%, respectively, significantly lower than the industry average of 0.75%. at the same time, the "matthew effect" within small and medium-sized banks is obvious. bank of beijing, ningbo bank and others have become systemically important banks in my country, while rural commercial banks and village banks in some places have continued to encounter risk events, and high-risk financial institutions are relatively concentrated in regions.
"for small and medium-sized banks, the key is to optimize risk management, improve asset quality, and enhance profitability. by building their own unique advantages, they can compete with large banks in a differentiated manner and avoid homogeneous internal competition. only in this way can they stand out in future competition," said wu zewei.
"in addition, regulatory authorities should continue to increase their supervision of the corporate governance norms and operational stability of small and medium-sized banks, and encourage small and medium-sized banks to improve their operational management level and risk prevention and control capabilities." yuan shuai said.
continue to promote risk reduction work
in fact, in recent years, risk resolution for small and medium-sized financial institutions has been one of the key regulatory concerns.
the central financial work conference held in october last year called for timely disposal of risks in small and medium-sized financial institutions. this year's "government work report" once again emphasized the steady promotion of risk disposal of small and medium-sized financial institutions in some places. at the beginning of this year, the state financial supervision and administration bureau announced that it would make full efforts to promote the reform and risk reduction of small and medium-sized financial institutions as one of the key tasks and goals in 2024.
at present, small and medium-sized banks have achieved positive results in risk mitigation.
on september 5, lu lei, deputy governor of the people's bank of china, said at a series of themed press conferences on "promoting high-quality development" held by the state council information office that the central bank has continuously improved its risk prevention and disposal mechanisms to prevent systemic financial risks. at present, the number of high-risk small and medium-sized banks has been reduced by nearly half from the peak.
on august 21, xiao yuanqi, deputy director of the state financial supervision and administration bureau, said at a press conference that, from a national perspective, small and medium-sized financial institutions are generally operating steadily, and their operating and regulatory indicators are also in a healthy and reasonable range. for example, the capital adequacy ratio of small and medium-sized banks is 13%, and the provision coverage ratio is 155%.
it is worth mentioning that the pace of mergers and reorganizations of small and medium-sized banks has accelerated since the beginning of this year. experts said that this way of banding together for warmth is conducive to improving the quality of financial supply on the one hand, and "aims" at preventing and defusing financial risks on the other.
wen bin believes that considering the problem of "similar in form but not in spirit" that is easily formed when banding together for warmth, as well as the invisibly increased multiple agency costs, the "single corporate bank model" will be the optimal corporate governance structure in the future, which will be more conducive to risk resolution for small and medium-sized banks.
in addition to mergers and reorganizations, wen bin also said that in order for small and medium-sized banks to achieve high-quality development in the future, they must shift from "scale first" to "quality first", and gradually build a capital-intensive management mechanism; accurately identify market positioning, create competitive advantages in niche areas, and take a differentiated and characteristic development path; improve corporate governance, strengthen behavioral supervision, and safeguard high-quality development.
