ICBC(SH:601398) Xin Lang Cai Jing·2025-06-25 12:29Core Viewpoint - The approval of Industrial and Commercial Bank of China (ICBC) to acquire Chongqing Bishan Rural Bank and establish a branch marks the first instance of a state-owned bank participating in the "village to branch" reform, indicating an expansion of financial reform within a larger financial system [1][2][10] Group 1: Acquisition Details - ICBC has been authorized to acquire Chongqing Bishan Rural Bank and set up ICBC Chongqing Bishan Central Avenue Branch, taking over the bank's assets, liabilities, business, and employees after asset verification [1][2] - Chongqing Bishan Rural Bank was established on December 23, 2009, with a registered and paid-in capital of 100 million RMB, and is fully controlled by ICBC [2][3] - The acquisition is expected to have no impact on ICBC's stock price as the rural bank is already a subsidiary of ICBC [3] Group 2: Other Banks' Status - Other major banks, such as China Construction Bank and Postal Savings Bank, have not announced any plans regarding "village to branch" reforms [4] - Several state-owned banks have established rural banks, with examples including Bank of China’s Zhongyin Fudeng Rural Bank, which was established in 2011 and has a network of 134 legal entities and 189 branch outlets [5] Group 3: Trends in Rural Banking - The establishment of rural banks aimed to address the long-standing financial service gaps in rural areas, but many face challenges such as governance issues, lack of credibility, limited market space, and difficulties in capital replenishment [7][8] - As of the end of 2024, the number of rural banks in China has decreased to 1,538, down from a peak of 1,651 in 2021, indicating a trend of consolidation and exit from the market [8][10] - The ongoing reforms in rural banking, including "village to branch" and "village to division," are part of a broader strategy to optimize the rural financial service system [10]