China has just seen the ranks of its listed A-share lenders expand to 38 with the initial public offering (IPO) on the mainland market of Bank of Chongqing.
On 21 January Bank of Chongqing completed A-share listing subscriptions, and currently awaits trading on the exchange.
Under its A-share IPO Bank of Chongqing is issuing approximately 347 million shares with an issue price of 10.83 yuan per share, comprising 10% of all equity following issuance.
Bank of Chongqing’s third quarter report indicates that it posted operating revenues of 8.944 billion yuan in the first three quarters of 2020, for a YoY rise of 17.40% despite the COVID-19 pandemic. Net profits were 3.891 billion yuan, for a YoY rise of 4.60%.
As of the end of September last year Bank of Chongqing’s capital adequacy ratio was 12.90%, while its tier-1 capital adequacy ratio was 9.86% and its core tier-1 capital adequacy ratio was 8.65%, putting it above the regulatory threshold.
Bank of Chongqing first listed in Hong Kong as an H-share in November 2013, while its listing as an A-share will make it the 15th “A+H” share bank in China that is listed on both mainland and Hong Kong bourses.
In April 2020 Bank of Chongqing and Bank of Chengdu executed the “Framework Agreement on Jointly Servicing the Chengdu-Chongqing Region, Establishing a Twin City Economic Zone and Strengthening Comprehensive Strategic Cooperation” (共同服务成渝地区双城经济圈建设 加强全面战略合作框架协议).