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involved in the e fund reporting scandalbank of shanghaibeing pushed to the forefront, a reporter from china business news noticed that the bank of shanghai's subsidiary shanghai bank (hong kong) co., ltd. (hereinafter referred to as "bob hong kong") and its subsidiary company shanghai bank of china international co., ltd. (hereinafter referred to as "bob") involved in the report letter "bohang international") has suffered continuous losses in recent years, with a cumulative loss of nearly hk$2 billion from 2021 to the first half of 2024. in addition, many subsidiaries of shanghai banking group have experienced performance deceleration, including four rural banks with a combined loss of over one million yuan in the first half of the year.

subsidiaries and subsidiary companies suffered continuous losses

public information shows that the bank of shanghai established its hong kong branch, bank of shanghai hong kong, in 2013, becoming the first city commercial bank to expand its business overseas. in march 2014, bank of shanghai hong kong established a wholly-owned subsidiary, bank of shanghai international, and officially opened in january 2015. as the overseas investment banking platform of bank of shanghai, boib international focuses on assisting the bank's customers in cross-border investment and financing activities.

according to the 2024 semi-annual report disclosed by the bank of shanghai, as of the end of the reporting period, bank of shanghai international had a loss of hk$107 million in main business income and a net profit loss of hk$686 million. the reporter noted that this is not the first time that shanghai banking international has fallen into a loss. in the previous 2021-2023, bo international has suffered consecutive net losses.

the bank of shanghai's 2023 annual report shows that the chinese real estate bond market has not improved significantly in 2023. due to asset impairment losses and the disposal of some real estate bonds, the total assets of bank of shanghai international at the end of the reporting period were hk$2.998 billion, net assets -hk$234 million, net a loss of hk$733 million. bank of shanghai hong kong's consolidated statement net loss was hk$728 million.

the financial report shows that in 2021 and 2022, bank of shanghai international recorded a net loss of hk$136 million and hk$378 million respectively, and the parent company bank of china hong kong's consolidated statement for the same period had a net loss of hk$89 million and hk$601 million. based on this calculation, the reporter calculated that the cumulative net loss of bank of china international in the past three and a half years was hk$1.933 billion, and the consolidated net loss of the parent company bank of china hong kong was hk$1.980 billion.

looking further, boib international currently controls 33 companies and wholly-owned 4 companies, namely bobi international (shenzhen) co., ltd. (hereinafter referred to as "bobo shenzhen"), bobi international equity investment fund management (shenzhen) co., ltd., shanghai bank international consulting (shenzhen) co., ltd., and bank of shanghai international investment (shenzhen) co., ltd. (hereinafter referred to as "bank of shanghai investment shenzhen"), with registered amounts of rmb 200 million, rmb 30 million, rmb 10 million, and rmb 1,000 respectively. ten thousand yuan. qichacha data shows that shanghai banking shenzhen, which has the largest amount of capital injection, is involved in a securities dispute, and the equity of two of its target companies has been frozen, namely shanghai banking yuanzhi (zhuhai hengqin) equity investment fund partnership (co., ltd.) partnership), shangyin herun (zhuhai hengqin) equity investment partnership (limited partnership). the frozen equity amounts are 17 million yuan and 5 million yuan respectively. the reporter noticed that the aforementioned two companies are also held by shanghai international, with shareholding ratios of 8.55% and 10.1796% respectively.

(2024) guangdong 0304 implementation no. 16474 document shows that bank of china investment shenzhen was listed as the person subject to execution in may this year, and the execution target reached 110 million yuan. the suspected execution applicant is shanwei runxing real estate development co., ltd.

in addition, the net assets of bank of china international also suffered continuous losses. according to the financial report disclosed by the bank of shanghai, as of the end of 2023, bank of shanghai international's total assets were hk$2.998 billion, net assets were -hk$234 million, and net profit loss during the same period was hk$733 million.

against this background, the bank of shanghai has made multiple capital increases in bank of shanghai hong kong and bank of shanghai international. the financial report shows that in january 2023, bank of shanghai increased its capital to bank of shanghai hong kong by an equivalent of approximately 2 billion yuan. in february 2023 and march 2024, bank of shanghai hong kong increased its capital to bank of shanghai international by hk$220 million and hk$322 million, respectively. , after the capital increase is completed, the registered capital of shanghai banking international is 1.322 billion yuan. after completing multiple capital increases by shareholders, as of the end of the second quarter of 2024, bank of china international's total assets reached hk$2.95 billion, but its net assets were still -hk$229 million.

the performance of many shanghai banking corporation companies has slowed down

public information shows that bank of shanghai has 8 major holding companies. in addition to bank of shanghai hong kong, there are also 4 rural banks, namely shanghai minhang bank of china rural bank co., ltd. (hereinafter referred to as "minhang bank of china rural bank"), zhejiang bank of shanghai bank of china quzhou qujiang shanghai bank rural bank co., ltd. (hereinafter referred to as "qujiang shanghai bank rural bank"), jiangsu jiangning shanghai bank rural bank co., ltd. (hereinafter referred to as "jiangning shanghai bank rural bank"), chongzhou shanghai bank rural bank co., ltd. (hereinafter referred to as "chongzhou shangyin rural bank").

in addition, there is a public offering fund shanghai banking fund, a wholly-owned financial management subsidiary shanghai banking financial management, and shanghai shangcheng consumer finance co., ltd. (hereinafter referred to as "shanghai shangcheng consumer finance") which holds 42.74% of the shares.

according to the 2024 semi-annual report disclosed by the bank of shanghai, the net profits of the aforementioned four rural banks suffered varying degrees of losses and declines. chongzhou shangyin rural bank had a net loss of 117,187 yuan in the first half of the year, the bank's first loss since 2018. the bank once achieved a net profit of 8.65 million yuan in 2021, but it shrank to 400,500 yuan in 2023, a decrease of more than 8 million yuan in two years.

another bank that suffered its first loss since disclosing financial data was qujiang shangyin rural bank. as of the end of the reporting period, the bank had a net loss of 3.4547 million yuan. the bank had achieved a net profit of 11.71 million yuan in 2019.

there is also jiangning shangyin rural bank located in jiangsu. as of the end of the second quarter of 2024, the bank achieved a net profit of 95,800 yuan, but it fell 47.78 percentage points from the same period last year. shanghai minhang and shanghai banking rural bank also achieved profitability, with a net profit of 12.2047 million yuan during the reporting period, but a year-on-year decrease of 31.22%.

the reporter calculated based on the performance data of four rural banks that the total net profit of the four rural banks in the first half of the year was a loss of 28.749 billion yuan, of which two recorded net losses and two experienced a decline in net profit growth.

in addition, bank of china financial management experienced a decline in scale and revenue in the first half of this year. according to data in the first half of 2024, the scale of the bank of shanghai wealth management's wealth management products has declined, down 20.77% from the end of the previous year, ranking last among city commercial banks. the actual net profit in the first half of the year was 0.33 yuan, ranking among city commercial banks. the last one among affiliated financial management companies. in terms of asset levels, the total assets of bank of china financial management in the first half of the year reached 4.315 billion yuan, and the net assets were 4.185 billion yuan, lagging behind nanyin financial management, hangzhou bank financial management and ningyin financial management.

the reporter also noticed that in the first half of the year, bank of china wealth management repeatedly lowered the performance comparison benchmark of its products, with the adjustment range ranging from 5bp to 15bp. among them, the performance comparison benchmark for the 01 issue of the "value selection" series of open-ended financial products (21 months) of bank of shanghai financial management has been adjusted. the performance comparison benchmark before adjustment is 4.00%-5.20%, and the performance comparison benchmark after adjustment is 2.50%-4.00%. four products in the "net benefit" series have been adjusted. the performance comparison benchmark of some products has been adjusted from 2.33%-2.73% to 2.18%-2.58%, and some products have been adjusted from 2.58%-2.98% to 2.43%-2.83%. the adjustment range is 15bp.

as the only public fund wholly owned by the bank of shanghai, the performance of bank of shanghai fund has been relatively volatile. in the first half of this year, shanghai banking fund achieved operating income of 207 million yuan and net profit of 89 million yuan, with a growth rate of 1.13%, which was 17 percentage points lower than the 18.03% growth rate in the same period last year.

in addition, at the end of the reporting period, shanghai shangcheng consumer finance's total assets were 18.790 billion yuan, an increase of approximately 400 million yuan compared with the same period last year; net assets were 2.356 billion yuan, an increase of approximately 200 million yuan compared with the same period last year; the loan balance was 18.685 billion yuan , an increase of 607 million yuan from 18.078 billion yuan at the end of the second quarter of 2023; during the reporting period, a net profit of 100 million yuan was achieved, an increase of 11 million yuan from 89 million yuan in the same period last year.