Sou Hu Cai Jing·2025-07-14 15:29Core Viewpoint - Zhejiang Commercial Bank is undergoing significant leadership changes, with the resignation of Chairman Lu Jianqiang and the appointment of Chen Haiqiang as the acting chairman, amidst ongoing challenges related to performance fluctuations and internal control issues [1][3][7]. Leadership Changes - Chairman Lu Jianqiang resigned due to age, and Chen Haiqiang, the current president, will assume his responsibilities until a new chairman is elected and approved by the regulatory authority [1][3]. - Chen Haiqiang's qualification as president was approved just two days before Lu's resignation, following an eight-month vacancy in the president position [5][7]. - The bank has experienced frequent changes in its executive team, including the resignation of former chairman Shen Renkang due to disciplinary investigations and the rapid departure of newly appointed president Zhang Rongseng [7][8]. Performance and Compliance Issues - Zhejiang Commercial Bank has faced performance volatility and internal control failures, leading to over 30 regulatory fines in 2024, totaling more than 11 million yuan, primarily for inadequate loan management and violations of prudent operating principles [9][12]. - The bank's non-performing loan (NPL) ratio improved to 1.38% by the end of 2024, down from 1.44% in 2023, but still lags behind peers like Ningbo Bank and Hangzhou Bank [14][16]. - The bank's total non-performing loans increased by 3.65% to 25.494 billion yuan, with a significant rise in overdue loans [16][19]. Risk Exposure - The bank's loan portfolio is heavily concentrated in high-risk sectors, particularly real estate, which poses ongoing asset quality pressures [19][21]. - As of the end of 2024, loans to the real estate sector accounted for a significant portion of the bank's top ten borrowers, indicating a high exposure to potential defaults in this volatile market [21][22]. Future Outlook - The bank is in a deep adjustment phase, with the new leadership tasked with restoring market confidence and addressing historical challenges [7][22]. - The management team has been restructured to include a new chairman, which is expected to facilitate a more stable governance framework moving forward [22].