For the first time in the past of the PRC, a state-owned financial holding belonging to NanChang City (chin. 南昌, capital of JiangXi Province, chin. 江西) takes over the controlling stake in a private bank. The State Financial Supervision Administration (SAFS, chin. 国家金融监督管理总局) approved Nanchang Financial Holding Co. Ltd. (chin. 南昌金控有限公司) 30% stake in JiangXi YuMin Bank Co. Ltd. (chin. 江西裕民银行) from its majority shareholder, ZhengBang Group Co. Ltd. (chin. 正邦集团有限公司). Thus the State-owned company became a controlling shareholder of a private bank.
Background: JiangXi YuMin Bank was founded by ZhengBang and 8 another private investors in 2019. It is the 18th of 19 private commercial banks operating in China. ZhengBang, 1 of the leading Chinese pork farmers and producers. Since 2020, this company has been facing financial problems resulting from aggressive business expansion and falling pork prices, which for respective seasons achieved evidence prices in China (effect of giant losses in the pig population resulting from the African swine fever epidemic).
In 2023 listed on the ShenZhen stock exchange, a subsidiary of ZhengBang, JiangXi ZhengBang Technology Co. Ltd., (chin. 江西正邦科技有限公司) began bankruptcy restructuring after declaring insolvency in 2022.
The subject substance mentioned at the beginning of the transaction, JiangXi YuMin Bank, is besides facing problems. In the first 3 quarters of 2023, the bank recorded a net failure of RMB 242 million (about PLN 120,53 million), with revenues of RMB 254 million (about PLN 136,67 million). By the end of September 2023, the bank had assets worth RMB 17.1 billion (about PLN 9.20 billion) and liabilities worth RMB 15.5 billion (about PLN 8.34 billion).
Based on:
- sohu.com;
- baijiahao.baidu.com;
- baike.baidu.com;
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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