The IPO Of The First Bank Stock Will Be On The Way This Year

When the first half of 2020, there will be no rapid development of Bank IPO in the first half of 2020.

According to the latest arrangement of China Securities Regulatory Commission, the 105th issuance and examination meeting of the year held on July 16, 2020 will audit four issuers including Xiamen bank.

It is worth mentioning that it has been two and a half years since Xiamen bank made its IPO declaration at the end of 2017, and during this period, many bank shares which were declared later than Xiamen bank had been listed early; under the background that many small and medium-sized banks failed to get IPO promotion, whether Xiamen bank could successfully pass the meeting and become the first bank share listed in A-share market this year also affected There are many banks in line with the sensitive nerve.

In fact, the market is also paying close attention to many listing details of Xiamen bank, such as whether the disclosure ratio of its non-performing assets is sufficient, whether there are potential non-performing assets affecting the credit quality of Xiamen bank.

250 billion

As the first bank stock to break through the barrier this year, Xiamen bank's volume is not large.

As of March 31, 2020, the total assets of Xiamen bank reached 250.21 billion yuan. If we put this asset scale in the current listed banks, the total assets of 250 billion yuan will rank the seventh from the bottom among the 36 listed banks, only higher than Zijin bank, and behind Bank of Xi'an.

It is worth mentioning that compared with the expansion of banking assets a few years ago, the growth rate of Xiamen bank's total assets is narrowing in recent years.

For example, before 2017, the growth rate of Xiamen bank's total assets was still in double digits, and its total assets growth during the three years from 2015 to 2017 were 34.60%, 17.87% and 12.61%, respectively.

The growth rate of its total assets is 22.9% in 2018 and 21.9% in 2019.

"On the one hand, the bank's scale reduction is related to the credit crunch cycle after 2017. At that time, the non-standard arbitrage verification and the return of off balance sheet business restricted the impulse of bank asset expansion." A business person of a large state-owned bank in Beijing said, "since 2018, many credit risks have been exposed frequently, which further curbed the risk preference of banks in the credit business, and the overall business showed a trend of contraction. This situation of Xiamen bank is also related to the cycle of the whole banking industry."

It is not only the total assets of Xiamen bank, but also the growth rate of its operating income in recent years. Wind data shows that although its operating revenue increased from 3.686 billion yuan in 2017 to 4.509 billion yuan in 2019, the growth rate decreased from 13.57% in 2018 to 7.73% in 2019.

"In recent years, the profits have been affected by the growth cycle of banks." One listed bank analyst pointed out.

In fact, in recent years, the constraints of cyclical factors on bank stocks have also been interpreted by some industry insiders as the reason why the IPO rhythm of bank stocks has not been promoted in the first half of the year.

According to the audit data, as of July 13, in addition to Xiamen bank, which will be on the meeting, there are still as many as 18 banks that have declared A-share listing are participating in the IPO queuing process.

Similar to Xiamen bank, the IPO progress of many banks has been stopped for a long time. For example, the latest announcement of Ruifeng agricultural commercial bank in Shaoxing, Zhejiang Province, is two and a half years ago.

In the view of industry insiders, Xiamen bank's meeting and whether the IPO can be successfully completed will also be regarded as one of the important signs for the restart of IPO process of bank shares.

"If Xiamen bank's IPO meeting, audit and subsequent approval are smoothly promoted, it shows that the legitimacy of the banking IPO has not been affected." "This is still good news for many issuers," said an investment bank at a leading brokerage in Beijing

"Banks, after all, are licensed institutions, which have always been the object of routine supervision by the regulatory authorities, and all of them are subject to the control of risk control indicators. Therefore, the approval of the banking and insurance regulatory authorities is required before listing. Therefore, it is not a problem to be able to arrange the meeting rate. If there are some unsolvable problems, they may be discussed in the feedback link." A city commercial bank close to the regulatory level said frankly.

According to the statistics of the issuing arrangements of banks in the A-share market, the reporter of 21st century economic news found that, except for the first refinancing of Bank of Nanjing, no bank's IPO or additional issuance audit has ever been vetoed by the regulatory authorities.

Is the safety defect rate?

Although some market participants are optimistic about whether Xiamen bank can pass the meeting, there is still uncertainty about whether it can pass the national examination committee.

By the end of 2018, the amount of non-performing loans of Xiamen bank had reached 1.109 billion yuan, of which sub-prime, suspicious and loss were 768 million yuan, 242 million yuan and 99 million yuan respectively; according to industry statistics, the manufacturing industry had the largest amount of non-performing loans, reaching 561 million yuan.

Statistics also show that the overall non-performing loan ratio of Xiamen bank was about 1.33% at the end of 2018, which was down from 1.38% in 2017.

The proportion of non-performing loans declined instead of rising, which aroused the concern of some people in the same industry.

"In fact, the credit environment in 2018 is not as good as that in 2017. In the second half of that year, many problems in the credit market were exposed, and even many major shareholders of listed companies could not afford the money of stock pledge financing. Some credit debts also broke down one after another. In 2019, many local banks exposed risks. However, at the end of this year, the proportion of non-performing loans of Xiamen bank decreased It's not easy. " State owned companies.

Whether the non-performing loans of Xiamen bank, which is about to break through the IPO barrier, has potential risks, and whether it may bring potential impact on its IPO has also become a concern of many industry insiders.

In addition, different from many banks to be listed, Xiamen bank also has shareholders from Taiwan. In 2008, it introduced Fubon Bank (Hong Kong) as an overseas investor, and it has become the only city commercial bank with Taiwan capital background in China, which is also one of the focuses of Xiamen bank since its IPO.

"Due to geographical factors, many financial institutions and industries in Xiamen have a deep relationship with Taiwan capital. Correspondingly, relevant credit businesses may also participate in cross-strait investment and trade financing to a certain extent." "However, the uncertainty brought by the epidemic situation and other factors to cross-strait trade may also bring uncertainty to Xiamen bank's potential business and asset quality," said a local bank official in Xiamen

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