This newspaper (chinatimesnet.CN) reporter Feng Yingzi reports from Beijing.
In the fifth year of Hengfeng Bank's share restructuring, the bank ushered in a new round of changes in the equity structure!
Recently, Shandong Financial Asset Management Co., Ltd. (hereinafter referred to as Shandong Financial Assets) issued an announcement announcing the transfer of 15 billion shares of Hengfeng Bank held by ** Huijin Company. This means that Shandong Financial Assets will become the largest shareholder of Hengfeng Bank.
In this regard, on February 23, an analyst revealed to the "China Times" reporter that the equity transfer optimized the equity and management relationship of Hengfeng Bank. **The nature of Huijin's investment in Hengfeng Bank has shifted from initial risk mitigation to strategic investment, and the investment value has been further demonstrated as Hengfeng Bank continues to develop and improve.
Change of the largest shareholder
On February 21, Shandong Financial Assets announced that Hengfeng Bank recently received an approval from the State Administration of Financial Supervision and Administration, agreeing to transfer 15 billion shares of Hengfeng Bank held by ** Huijin, corresponding to 1349% of Hengfeng Bank's shares.
Before the equity transfer, **Huijin held 53 Hengfeng Bank95% of the shares, the largest shareholder; Shandong Financial Assets holds 3312% of the shares, making it the second largest shareholder.
After the change, Shandong Financial Assets holds about 518 Hengfeng Bank3.8 billion shares, accounting for about 4661%, becoming the largest shareholder of Hengfeng Bank. **Huijin holds 45 billion shares of Hengfeng Bank, accounting for about 40% of the total share capital46%。
From the perspective of the nature of shareholders, **Huijin is a wholly-owned subsidiary of China Investment Corporation, and **Huijin's shareholding belongs to the state; Shandong Financial Assets is a provincial-level financial asset management company approved by the people of Shandong Province, and its shareholding in Hengfeng Bank is a state-owned legal person share.
After the completion of the transaction, the company's shareholding in Hengfeng Bank has increased, and the original business of Hengfeng Bank and the company's main business can further form synergies. Shandong financial assets said.
According to analysts, in fact, the management of Hengfeng Bank has always belonged to Shandong Province. In the process of Hengfeng Bank's risk-relieving, Shandong Province also took out the "real gold" to transfer the equity of Huijin again, whether in terms of policy or capital, Shandong Province has maintained considerable support for Hengfeng Bank.
At the same time, the "China Times" reporter also noticed that before the equity change, Shandong Financial Assets had been silently increasing its holdings in Hengfeng Bank. In December 2021, Shandong's financial assets were 23.3 billion yuan and 13.9 billion yuan, transferred to Hengfeng Bank held by Jingzhong Wu Hengli Investment and Development9.3 billion shares and 17.6 billion shares.
In May 2022, Shandong Financial Assets made another move and took over Hengfeng Bank 2. held by Yantai Guangxin Investment Development Co., Ltd. and Yantai Jingcheng Aquatic Products Co., Ltd4.2 billion shares (appraised price 2.)7.3 billion yuan) and 07.8 billion shares (appraised price 0..)8.8 billion yuan), and the purchase price was 18.5 billion yuan and 0600 million yuan, about 7% of the appraisal price.
According to public information, Shandong Financial Assets was established in December 2014, registered in Jinan, Shandong, and is a provincial-level financial asset management company approved by the people of Shandong Province, with a registered capital of 49.6 billion yuan, which is the largest local asset management company in China.
Tan Junhao, an adjunct professor at Zhongnan University of Economics and Law, told the China Times that the bank reform is in line with the law of market operation, and the scale of Shandong's financial assets is large and the capital strength is very strong, which will give Hengfeng Bank support in many aspects, and the two will further develop in a coordinated manner.
In addition, a person familiar with the matter told the "China Times" reporter that after the equity change, the top two shareholders of Hengfeng Bank remained unchanged. From the perspective of the board structure, the two major shareholders will be deeply involved in the future governance of Hengfeng.
Specifically, Shandong Financial Assets sent two equity directors, ** Huijin has 3 seats on the board of directors, in addition to one director re-elected in the previous year, 2 directors have been added recently, and have been reviewed by the board of directors of Hengfeng Bank, and will be submitted to the general meeting of shareholders for review and approval by the regulatory authorities in the near future.
The road to mitigation and reform
Hengfeng Bank is one of the 12 national joint-stock banks in China, formerly known as Yantai Housing Savings Bank, which was established in 1987. In August 2003, with the approval of the People's Bank of China, it was restructured into Hengfeng Bank shares***
In 2017, the risk-exposed Hengfeng Bank was taken over by a working group sent by Shandong Province, and the chairman, president, and chairman of the board of supervisors were replaced to form a new leadership team. In 2019, Hengfeng Bank ended the office situation of the three headquarters (Yantai, Beijing and Shanghai), and officially moved the head office from Yantai, the place of registration, to Jinan, and thus the headquarters was located in Jinan.
At the same time, Hengfeng Bank also confirmed the three-step reform and restructuring idea of "divesting non-performing assets, introducing war investment, and overall listing", which was called "life and death test, nirvana rebirth" by the outside world.
At the annual work conference of that year, Chen Ying, then Secretary of the Party Committee and Chairman of Hengfeng Bank, also said: "In recent years, we have suffered serious setbacks and experienced serious crises in the 'Jiang Xiyun case' and 'Cai Guohua case' one after another. At present, we are facing unprecedented major changes, major opportunities and major challenges. At this critical historical juncture, what kind of bank to build, what kind of development to achieve, and how to develop are the most important issues in front of the Party Committee of the head office and all Hengfeng people. ”
At the end of 2019, Hengfeng Bank completed the restructuring of market-oriented reform shares, and Hengfeng Bank issued 100 billion ordinary shares in a non-public manner, at a rate of 1 yuan per share. Among them, ** Huijin invested 60 billion yuan in shares; Shandong Provincial Finance invested 36 billion yuan to inject Shandong financial assets through Luxin Group, and the latter participated in the capital increase and share expansion of Hengfeng Bank; Singapore's UOB and other shareholders subscribed for 4 billion shares.
*Huijin and Shandong Financial Assets also became the bank's first through this additional issuance.
The first and second largest shareholders are an important force in the bank's reform and risk reduction. Especially in the stripping of non-performing assets, Shandong financial assets play an important role as a local AMC.
In October 2020, Wang Xifeng, President of Hengfeng Bank, told the outside world that in order to divest non-performing assets, Hengfeng Bank hired professional intermediaries such as CICC, Zoomlion Asset Appraisal Company, PricewaterhouseCoopers Zhongtian Certified Public Accountants, and King & Wood Mallesons to carry out due diligence and asset evaluation, and divest the non-performing assets to Shandong Financial Asset Management Company at one time according to the market, realizing the real transfer and clean off the balance sheet of non-performing assets.
On January 12, 2020, it was reported that all the 100 billion yuan strategic investment funds of Hengfeng Bank were in place, marking the basic completion of the bank's reform and reorganization.
In terms of capital replenishment, Hengfeng Bank mainly through the issuance of capital supplementary bonds and profit retention. For example, in May 2022, the bank issued 5 billion yuan of open-ended capital bonds, but the rapid development of its business continued to consume capital, and the bank's core Tier 1 capital adequacy ratio and capital adequacy ratio were 843% and 1199%, down 0. year-on-year24 and 012 percentage points.
The continuous growth of business scale in the future will put continuous pressure on the bank's capital replenishment. China Chengxin International said in the "Hengfeng Bank 2023 Annual Tracking Rating Report".
After several years of development, today's Hengfeng Bank has been on the right track. As of the end of September 2023, Hengfeng Bank's total assets were 141 trillion yuan; From January to September 2023, the operating income will be 1830.9 billion yuan, net profit of 40700 million yuan; Capital adequacy ratio 119% and a non-performing loan ratio of 176%。
In the past year, we have adhered to compliance-oriented, in-depth prevention and mitigation of risks, and strengthened the foundation of internal control and compliance. Xin Shuren, Secretary of the Party Committee and Chairman of Hengfeng Bank, said in his 2024 New Year's message.
At the same time, Xin Shuren mentioned that in the new year, it is necessary to do a solid job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance, do business, expand customers, prevent risks, improve efficiency, optimize the credit structure, create a characteristic model, enhance core competitiveness, and take new responsibilities and new actions on the new journey.
At present, under the "three-step" strategic path, the bank has already completed the first two steps, namely "divesting non-performing and introducing strategic investment", and the last step of "overall listing" needs to be further explored by Hengfeng Bank.
Editor-in-charge: Meng Junlian Editor-in-chief: Zhang Zhiwei.