There has been a "disruption" in the bank team that hit the A-share IPO.
In the entire two years from late June 2020 to the present, no bank A-share IPO application has been accepted by the China Securities Regulatory Commission.During the two-year "window period", due to the continuous listing of banks, voluntary suspension and rejection of the meeting, the number of banks waiting outside the A-share market has been greatly reduced to 10.According to the latest review progress, the above-mentioned queuing banks are currently on the same starting line, all of which are in the pre-disclosure update stage.
No bank IPO application accepted in two years
For banks, the realization of listing will not only help to enhance their own brands, but also more importantly, to supplement their valuable capital.Because of this, all banks have been making various efforts to enter the A-share market as soon as possible.
The "Securities Daily" reporter noted that in late June 2020, after both Bank of Guangzhou and Chongqing Three Gorges Bank's A-share IPO applications were accepted, in the following two full years, no bank's IPO application was accepted.
At present, a total of 10 banks are still on the A-share queuing list, and the acceptance period of the above banks is from 2018 to 2020.Among them, Bozhou Yaodu Rural Commercial Bank has the longest acceptance time for A-share IPO applications, and the acceptance date of this bank is March 22, 2018. Even Chongqing Three Gorges Bank, which has the shortest acceptance time, has an acceptance date of June 2020. 28.
"The stagnation in the acceptance of A-share IPO applications for such a long time is mainly due to the fact that most high-quality banks have completed their listings, and the number of remaining banks that meet the listing requirements is getting smaller and smaller. Some banks need to further improve their internal equity structure and corporate governance. There are also problems such as substandard financial indicators due to fluctuations in performance and decline in asset quality." He Yanlin, a professor at the School of Finance at the University of International Business and Economics, said in an interview with a reporter from Securities Daily that in addition, the A-share market has always required banks for IPO access. Higher, the review is more stringent, there are still 10 banks queuing up to apply for listing, and it will take some time to digest.For those banks that plan to impact the listing of A-shares, they should sort out their own problems and conduct self-checks in accordance with relevant listing regulations. If there are problems, "check and make corrections" so that the follow-up process can be smooth.
It is thanks to the "careful selection" of banks in the A-share market that the performance of A-share listed banks has always been stable.The 2021 annual report shows that among the 42 listed banks, 40 banks have achieved positive year-on-year net profit growth, and another 30 banks’ net profit has increased by more than 10% year-on-year.
In contrast, listed banks in the Hong Kong stock market have relatively simple and convenient listing review.Among the 17 pure H-share listed banks, a total of 5 banks will see a year-on-year decline in net profit in 2021, and all the declines will exceed 20%, and the number of banks with declining net profit will account for nearly 30%.Affected by many factors, up to now, among the 17 pure H-share listed banks, 16 banks' stock prices are in a "break" state.It is not difficult to see that due to the strict control over the listing of banks, the performance and stock price of banks in the A-share market after listing are relatively more stable.
10 A-share queuing banks are all "pre-disclosure updates"
The reduction in the number of waiting banks, in addition to the two-year "empty window" in the acceptance of banks' A-share IPO applications, is also one of the reasons for the reduction of the original banks due to various reasons.
Since the beginning of this year, Xiamen Bank and Jiangsu Dafeng Rural Commercial Bank have successively withdrawn from queuing banks.The former withdrew its A-share IPO application "for the purpose of equity optimization", while the latter was rejected at the first meeting.
On the one hand, there is no inflow of fresh blood, and on the other hand, there is the withdrawal of "veterans" in the queue, and the number of banks in normal queues has also shrunk significantly.
According to the latest information on companies applying for IPOs disclosed by the China Securities Regulatory Commission, a total of 10 banks are still lining up normally, and this number is much lower than the peak period.Among them, the number of banks that intend to apply for listing on the Shenzhen Stock Exchange and the Shanghai Stock Exchange is 6 and 4 respectively, all of which are composed of small and medium-sized banks such as city commercial banks and rural commercial banks, and are all in the "pre-disclosure update" stage.Although the above-mentioned banks have different acceptance times, they are in the same review stage, so it can be said that they are on the same starting line for impacting A-share IPOs.
He Yanlin believes that the 10 banks that have been accepted are mainly small and medium-sized banks such as city commercial banks and rural commercial banks. It is relatively difficult for such banks to replenish capital through other channels.He expects that the "window period" of application acceptance will not last too long, after all, many small and medium-sized banks still have strong listing needs.However, from the supply side, the listing review of banks will still be more stringent in the future, and the number will be controlled.Those small and medium-sized banks with clear ownership structure, sound internal governance, stable operation and strong competitiveness will have a relatively smooth road to listing.
Our reporter Lu Dong
(Editor in charge: Jiang Ninglu)
