QILU BANK(SH:601665) Hua Xia Shi Bao·2025-07-16 08:06Core Viewpoint - The recent performance of bank stocks has been strong, prompting major shareholders, such as Chongqing Huayu Group, to consider reducing their holdings for profit-taking purposes [1][2]. Group 1: Shareholder Actions - Chongqing Huayu plans to reduce its stake in Qilu Bank by up to 1.1% of the total share capital through block trading within two months, potentially realizing around 380 million yuan based on recent stock prices [1][2]. - As of July 11, 2025, Chongqing Huayu holds 190 million shares of Qilu Bank, accounting for 3.55% of the total share capital, with most shares acquired before the IPO [2]. - This is not the first instance of Chongqing Huayu reducing its stake; in 2024, it sold approximately 63.7 million shares, representing 1.32% of the total share capital, for around 301 million yuan [3]. Group 2: Market Context - The announcement of the reduction coincides with a period of rising bank stock prices, with Qilu Bank's stock increasing by 20% this year and reaching a record high of 6.76 yuan per share on June 24 [2]. - Following the reduction announcement, Qilu Bank's stock price fell by 3.5% on July 15 and continued to decline by 2.89% on July 16 [2]. Group 3: Trading Mechanisms - Chongqing Huayu's current reduction will be executed through block trading, which is typically chosen to minimize immediate market impact compared to regular market trading [4]. - Block trading allows for large transactions to be negotiated outside the public market, with details disclosed after the fact, potentially influencing market sentiment indirectly [4]. Group 4: Industry Insights - The trend of major shareholders reducing their stakes is not isolated, as seen with other banks like Changsha Bank, where a significant shareholder also announced a reduction based on personal funding needs [6]. - Experts suggest that such reductions may indicate that major shareholders perceive bank valuations as high, which could affect investor confidence [6]. - Despite these reductions, analysts believe that the overall valuation of banks remains supported by factors such as low interest rates and ongoing structural transformations within the banking sector [5][7].