Bank of Chengdu(SH:601838) Nan Fang Du Shi Bao·2025-09-08 11:57Core Viewpoint - The recent announcements from Chengdu Bank regarding the retirement of Vice Chairman Ho Wai Choong and the significant shareholding increase by state-owned enterprises indicate a new phase in the bank's collaboration with strategic investor Hong Leong Bank, reflecting local government confidence in the bank's long-term value [2][5]. Group 1: Management Changes - Ho Wai Choong, who served as Vice Chairman for 17 years, has officially retired and will no longer hold any positions within the company starting September 4, 2025 [3]. - His tenure is noted for facilitating the transformation of Chengdu Bank from attracting foreign investment to internalizing governance experiences, marking a shift towards self-optimization [4]. Group 2: State-Owned Enterprises' Shareholding Increase - On September 4, Chengdu Bank announced that state-owned shareholders, Chengdu Industrial Capital Holding Group and Chengdu Xintianyi Investment, have collectively increased their holdings by over 160 million yuan [5]. - Following this increase, Chengdu Industrial Capital's shareholding rose to 5.84%, while Chengdu Xintianyi's shareholding reached 3.90%, with both committing to not reduce their holdings within the legal timeframe [5]. Group 3: Business Development Potential - The combination of management changes and state-owned capital increases is expected to open new development opportunities for Chengdu Bank [6]. - The bank has achieved record performance in 2024, with total assets, deposits, and loans reaching 1.25 trillion yuan, 880 billion yuan, and 740 billion yuan respectively, marking a continuous growth trend [6]. - Chengdu Bank's non-performing loan ratio has decreased to a historical low of 0.66%, significantly better than the industry average, supported by a robust risk management system developed during Ho's tenure [6]. Group 4: Historical Context and Future Outlook - Chengdu Bank and Hong Leong Bank began their strategic partnership in 2007, with Hong Leong Bank becoming a significant shareholder in 2008 [7]. - The upcoming board seat replacements following Ho's retirement are anticipated to attract new international business collaborations, enhancing the bank's resource acquisition capabilities in areas like local infrastructure and green finance [8].