① On March 19, the listed company Huazi Industrial issued an announcement stating that it plans to sell some or all of the company's remaining Huaxia Bank shares (22,427,200 shares); ② during the peak of 2004, the company held 120 million Huaxia Bank corporate shares and was the eighth largest shareholder of Huaxia Bank; ③ Since the beginning of the year, several listed companies have issued announcements announcing the transfer of shares in listed banks and unlisted banks.
Financial Services Association, March 20 (Reporter Peng Kefeng) Since the beginning of the year, despite some ups and downs in the stock market, the banking sector has undoubtedly been the “most beautiful kid” in the entire market, and some institutions have inevitably changed their minds.
On March 19, the listed company Huazi Industrial issued an announcement stating that according to the board of directors resolution, it will sell some or all of the remaining Huaxia Bank shares held by the company (22,427,200 shares) according to the company's capital requirements.
A banking analyst at a brokerage firm told the Financial Federation reporter that the reasons why listed companies sell bank shares they hold are not the same and cannot be generalized. Some are due to the need to “focus on the main business” of state-owned enterprises; others start from the perspective of financial investment. Of course, bank stocks, which have been representative of the “high dividend” sector since the beginning of the year, will naturally have some shareholders plan to cash out at a high level because of their good stock price performance. These are all normal market behaviors.
Selling again, this listed company plans to sell Huaxia Bank shares again
Huazi Industrial said in the announcement that the company held the 5th meeting of the 9th board of directors on March 18, 2024 to review and pass the “Proposal on the Company's Proposed Sale of Huaxia Bank Shares” with 8 votes in agreement, 0 votes against, and 0 abstentions. The company plans to authorize the management to sell some or all of the company's remaining Huaxia Bank shares within 12 months from the date the board of directors deliberates and passes this bill according to the company's capital requirements. The transaction will be completed through legal methods such as centralized bidding transactions and bulk transactions. The specific counterparty to the transaction has not yet been specified.
It is worth noting that a year ago, this listed company also issued an announcement announcing that it would take the opportunity to take a stake in Huaxia Bank.
On March 21, 2023, Huazi Industrial held the 20th meeting of the 8th board of directors to review and pass the bill to sell Huaxia Bank shares, and authorized the management to take the opportunity to complete related matters within 12 months from the date of approval by the board of directors. According to information, as of March 18, 2024, Huaxia Bank Co., Ltd. held 61,504,100 shares, sold 39,076,900 shares, and held the remaining 22,427,200 shares. The remaining holdings account for 0.14% of Huaxia Bank's registered capital, all of which are unlimited tradable shares.
According to a simple calculation by the Financial Services Association reporter, it can be seen that the last time Huazi Industrial took action, it sold nearly two-thirds of its shares in Huaxia Bank. Furthermore, the proceeds from the previous sale of Huaxia Bank shares by Huaxia Industrial have been included in retained earnings in accordance with accounting standards, and have not affected the company's net profit.
A CFC reporter noticed that at the close of trading today, Huaxia Bank rose 0.48% to close at 6.28 yuan. If Huazi Industrial sells all of its 22,427,200 shares, calculated at today's closing price, it can obtain a profit of about 140 million yuan.
Furthermore, the Financial Services Association reporter's inquiry revealed that Huazi Industrial can be considered an old shareholder of Huaxia Bank, and the two sides have deep ties. According to public reports, Huaxia Bank's shares were held by Huaxia Bank by “investing 20 million yuan to acquire 10 million shares of Huaxia Bank held by Nanchang Cree Group Co., Ltd.” At its peak in 2004, the company held 120 million Huaxia Bank corporate shares and was the eighth largest shareholder of Huaxia Bank.
Since the beginning of the year, many listed companies have sold bank shares, and there is no shortage of well-known banks
In fact, it is not unusual for listed companies to sell bank shares they hold. Since the beginning of the year, a number of listed companies have issued announcements announcing the transfer of shares in listed banks and unlisted banks, and there is no shortage of major state-owned banks such as Bank of Communications among the bank stocks sold. Of course, there are also listed companies that “sell sincerely” but still haven't been able to break away.
On January 11, the listed company ST Furun issued an announcement stating that its recent listing and transfer of part of Zhejiang Zhuji Rural Commercial Bank Co., Ltd.'s shares were unsuccessful. According to the authorization of the board of directors, “the company terminated this auction of 10 million shares of Zhuji Agricultural Commercial Bank.”
On January 30, Huaxi Energy issued an announcement replying to the Shenzhen Stock Exchange that it held 15.472% of its shares in Zigong Bank were taken over by four local private enterprises in Zigong with a total cash consideration of 856 million yuan. According to the current transaction process, the underlying shares are expected to be settled by the end of February.
On February 7, Century Construction issued an announcement stating that on February 6, 2024, the company sold a total of 100,000 Bank of Communications shares on the market through its wholly-owned subsidiary. The sales price was about HK$4.82 per share, and the total proceeds from the sale were about HK$482,000 (not including transaction costs). After the sale, the Group no longer held any shares in Bank of Communications.
On February 23, Yituo Co., Ltd. announced that the company's holding subsidiary Yituo (Luoyang) Diesel Engine Co., Ltd. plans to publicly list and transfer 0.8827% of the shares held by Zhongyuan Bank Co., Ltd., constituting a major asset sale. Yituo Diesel Engine has officially publicly listed the shares to be transferred on the Beijing Property Exchange, but as of the date of disclosure of the announcement, no intended transferees have been solicited.
On February 26, the listed company Yunji Group announced that the company plans to sell 3.30% of the company's shares of Zigong Bank Co., Ltd. to Sichuan Oil Scraper Industrial Co., Ltd. through cash sales. After the transaction was completed, the company no longer held shares in Zigong Bank.