In terms of asset size, WeBank ranks first with a scale of 220.037 billion yuan (accounting for 35% of the total assets of all private banks).
The establishment of private banks was accelerated. Following the approval of Jiangxi Yumin Bank in May this year, Wuxi Xishang Bank Co., Ltd. (hereinafter referred to as "Xishang Bank") was recently approved for establishment, becoming the second private bank in Jiangsu Province and the 19th approved private bank in the country.
The announcement shows that Xishang Bank is positioned as an Internet of Things bank, mainly serving the real economy, especially small, medium and micro enterprises and related technological innovation enterprises such as the Internet of Things. It is worth mentioning that the successive approvals of Jiangxi Yumin Bank and Xishang Bank also reflect the increasing trend of private bank expansion due to the release of policy dividends. Currently, Henan Huamao Bank is also actively preparing.
Two A-share listed companies participated in the
On the evening of September 17, Jiangsu Hongdou Industrial Co., Ltd. (hereinafter referred to as "Hongdou Shares (600400, Share Bar)") announced that the company plans to jointly sponsor the establishment of Xishang Bank, with a total of 8 sponsors and a planned registered capital of 2 billion yuan. In accordance with regulatory requirements, Xishang Bank will complete the preparatory work within the next six months. After the preparatory work is completed, it can submit an application for opening to the Jiangsu Banking and Insurance Regulatory Bureau.
Among them, Hongdou Co., Ltd. plans to invest 100 million yuan with its own funds, holding a 5% shareholding ratio; Hongdou Co., Ltd.'s controlling shareholder Hongdou Group Co., Ltd. (hereinafter referred to as "Hongdou Group") plans to invest 500 million yuan with its own funds, holding a 25% shareholding ratio. In addition to Hongdou Co., Ltd. and Hongdou Group, there is another listed company, Suzhou Kelida (603828, Guba) Decoration Co., Ltd., with a shareholding ratio of 9.95%. In addition, the second largest shareholder, Jiangyin Chengxing Industrial Group Co., Ltd., has a subscription ratio of 24%. The company is also the controlling shareholder of the listed company Chengxing Shares (600078, Share Bar).
Except this. The subscription ratios of the remaining four sponsors are as follows: Nanjing Dele Technology Co., Ltd. (9.99%), Xingda Investment Group Co., Ltd. (9.99%), Jiangsu Shuangxiang Group Co., Ltd. (9.95%), and Sensing Technology Wuxi Co., Ltd. (6.12%).
According to the announcement, Xishang Bank is positioned to explore and build an Internet of Things bank using mobile finance and Internet of Things technology. It plans to provide a variety of financial products for the growth and development of the real economy, especially small and medium-sized enterprises and related technological innovation enterprises such as the Internet of Things, build a multi-level financial market, and enhance the comprehensive financial competitiveness of the Wuxi region.
Hongdou Co., Ltd. stated that the establishment of Xishang Bank is based on the good development prospects of private banks, further broadening investment channels, and cultivating new profit growth points; at the same time, seizing the development opportunities of the Internet of Things financial business, leveraging Xishang Bank’s segmented strategic positioning and resource advantages, providing comprehensive financial services such as payment and funds for private and small and micro enterprises in the industry chain, and continuing to enhance market competitiveness.
In fact, before Xishang Bank was approved for establishment, Hongdou Group had extensive financial business deployment, covering small loan companies, finance companies, commercial banks, insurance companies, guarantee companies, financial leasing, private equity funds, etc. Among them, the reporter inquired about Qixinbao and found that Hongdou Group has invested in banks including Bank of Jiangsu, China Guangfa Bank, and Wuxi Rural Commercial Bank. Among them, Jiangsu Hongdou International Development Co., Ltd. holds 4.49% of the shares of Wuxi Rural Commercial Bank, making it the fourth largest shareholder of the bank.
Public information shows that Hongdou Group was established in June 1992. Its products have developed from the initial knitted underwear to four major fields: textiles and clothing, rubber tires, yew health, and park development and commercial real estate. It ranks among the top 100 private enterprises in China. The group has more than ten subsidiaries, including two main board-listed companies, Hongdou Co., Ltd. and General Motors Co., Ltd. (601500, Stock Bar), and has overseas branches in New York, Singapore, Spain and other countries.
Zhou Haijiang holds 33.86% of the shares of Hongdou Group and is the largest shareholder. He is the Party Secretary, Chairman of the Board and CEO of Hongdou Group. As of the end of 2018, Hongdou Group's total assets were 43.113 billion yuan, net assets were 13.857 billion yuan, operating income was 18.292 billion yuan, and net profit was 557 million yuan.
Speeding up the establishment of private banks
Since the beginning of this year, policies favorable to the profitability of private banks have been continuously released. The government work report clearly stated that the financial system structure should be reformed and optimized, and private banks and community banks should be developed. The China Banking and Insurance Regulatory Commission also issued a document previously stating that it will continue to follow the principle of "mature banks, established banks" to orderly promote the normal development of private banks.
Against this background, as an important supplement to my country's financial system and an important force in inclusive finance, the development of private banks has received great attention, and the "capacity expansion" trend continues to heat up. In May this year, Jiangxi Yumin Bank was approved for establishment. At that time, more than two years had passed since the last private bank had obtained approval.
The private bank pilot program was launched in 2014, and five pilot private banks were approved that year; by 2016, 12 private banks were approved. However, since 2017, the establishment of private banks has been put on pause. In 2017 and 2018, no one was approved for establishment, and the number of banks has remained at 17. This year, two banks have been approved. In addition, Henan Huamao Bank is also actively preparing for the establishment of private banks.
Private banks are playing an increasingly important role in my country's financial system. In the reform of the LPR (loan market quotation rate) formation mechanism implemented in August this year, two Internet banks, WeBank and MYbank, were selected as 18 quoting banks.
However, overall, the operating conditions of the 17 private banks that have opened are quite different. For example, in terms of asset size, WeBank ranks first with a scale of 220.037 billion yuan (accounting for 35% of the total assets of all private banks), and is 120 billion yuan higher than the second-placed online merchant bank (95.864 billion yuan). The total assets of WeBank and MYBank account for about half of the total assets of all private banks.
According to many industry insiders, private banks are faced with the pressure of narrow funding sources and high funding costs. According to data from the China Banking and Insurance Regulatory Commission, as of the end of 2018, the net interest margin of private banks was 3.49%, which is higher than the average level of other types of banks. Some people say that private banks need to focus on industries, scenarios, and business models in the future, make full use of shareholder resources, make extensive use of external cooperation, rely on financial technology momentum, and continue to innovate products.
