Fujian province lender Xiamen Bank has seen shares surge over 40% on its first day of trading, boding well for over a dozen other regional banks awaiting their A-share listings.
Xiamen Bank listed on the Shanghai Stock Exchange (SSE) on 27 October, becoming the first Chinese bank to make its debut as an A-share since the start of 2020.
The IPO saw the issuance of 264 million shares at a price of 6.71 yuan per share, raising 1.771 billion yuan in total. At the close of trading Xiamen Bank’s share price was 9.41 yuan, for a rise of 40.24%.
Xiamen Bank’s impressive performance is a positive sign for the 17 other Chinese banks lining up for A-share listings on domestic bourses, which include Shanghai Rural Commercial Bank, Bank of Dongguan, Bank of Qilu, Chongqing Sanxia Bank, Bank of Guangzhou and Bank of Huzhou.
As of the end of September Xiamen Bank’s total assets were 271.242 billion yuan, for a rise of 9.87% compared to the end of last year. Its total liabilities were 255.073 billion yuan, for a YoY rise of 10.28%.
In the first three quarters of 2020 Xiamen Bank posted operating revenues of 3.739 billion yuan, for a YoY rise of 19.56%, while net profits attributable to the parent company and shareholders were 1.254 billion yuan, for a YoY rise of 7.68%.
Xiamen Bank’s capital adequacy ratio was 14.10% as of the end of September, for a decline of 1.11 percentage points compared to the end of last year. Its tier 1 capital adequacy ratio was 10.35% while its tier 1 core capital adequacy ratio was 10.33%, for declines of 0.81 and 0.82 percentage points respectively.