Core Viewpoint - Jilin Jiutai Rural Commercial Bank has officially delisted from the Hong Kong Stock Exchange, leaving only Harbin Bank among the "listed banks F4" in Northeast China, highlighting the challenges faced by small and medium-sized banks in raising capital through equity markets [1][3]. Group 1: Delisting and Acquisition - The delisting news was first disclosed in July 2023, when Jiutai Rural Commercial Bank announced a voluntary conditional cash offer from Jilin Financial Holding Group to acquire all issued H-shares at HKD 0.7 per share and domestic shares at RMB 0.63 per share [2]. - As of November 21, 2023, the offeror had received 920 million H-shares and 3.78 billion domestic shares, representing approximately 95.26% and 92.09% of the total shares held by H-share and domestic shareholders, respectively, indicating a smooth acquisition process [2]. Group 2: Reasons for Delisting - Jiutai Rural Commercial Bank cited limited ability to raise capital through equity markets and a deteriorating financial performance as reasons for its delisting, believing that operating as a private company would allow for more strategic adjustments [3]. - The bank issued a profit warning in August 2023, projecting a net loss of approximately RMB 898 million for the six months ending June 30, 2025, primarily due to increased asset impairment losses [3]. Group 3: Market Trends and Implications - Jiutai Rural Commercial Bank is not the first bank in Northeast China to delist; Jinzhou Bank and Shengjing Bank have also exited the Hong Kong market due to low trading volumes, which hinder effective capital raising [4][5]. - The average daily trading volume of Shengjing Bank's H-shares was only about 0.0025%, 0.0345%, and 0.0196% of the total issued H-shares over the last 90, 180, and 360 trading days, respectively, illustrating the challenges faced by small banks in the Hong Kong market [4]. - Analysts suggest that the delisting of smaller banks is due to the loss of financing functions and a lack of international strategies, with some banks potentially preparing for reforms in rural credit systems [5][6].
吉林金控要约收购 九台农商银行正式从港股退市