Zheng Quan Shi Bao·2025-10-14 08:16Core Viewpoint - The recent increase in shareholding by major stakeholders, particularly China Mobile, reflects strong support for the long-term development of Shanghai Pudong Development Bank (SPDB) [1][2]. Shareholding Changes - China Mobile converted 56.31 million convertible bonds into 450 million ordinary shares of SPDB on October 13, raising its shareholding from 17% to 18.18% [2]. - As of June 30, China Mobile held a total of 90.85 million convertible bonds, indicating that there are still some bonds yet to be converted [2]. - Other stakeholders, such as Dongfang Asset and Xinda Investment, have also increased their holdings through market purchases and bond conversions, with Dongfang Asset holding 1.073 billion shares and Xinda Investment converting nearly 118 million bonds into shares [2][3]. Financial Performance - For the first half of 2025, SPDB reported operating income of 90.56 billion yuan, a year-on-year increase of 2.6%, and a net profit attributable to shareholders of 29.74 billion yuan, up 10.2% [3]. Convertible Bond Redemption - SPDB's convertible bonds are nearing their redemption date, with the bank announcing plans to redeem all unconverted bonds at 110% of their face value [4]. - The total amount of convertible bonds issued in 2019 was 50 billion yuan, but as of March 2023, 99.9971% of these bonds remained unconverted [4]. - The market had anticipated that rising stock prices would trigger conversions, but the overall decline in bank stock prices in the second half of the year has led to a shift towards redemption instead [5]. Market Dynamics - The demand for bank convertible bonds remains high due to their strong credit quality and risk resistance, but the supply has stagnated since 2023 due to long-term valuation issues in the banking sector [7]. - Following the redemption of SPDB's convertible bonds, the total scale of remaining bank convertible bonds is expected to drop below 90 billion yuan, with the power equipment sector surpassing banking as the largest sector for convertible bonds [7].