Xin Lang Cai Jing·2026-02-06 12:06Core Viewpoint - Hongkang Life, which heavily invested in Zhengzhou Bank's H-shares six months ago, has begun to reduce its holdings due to a significant decline in the bank's stock price and low dividends, raising questions about the rationale behind such short-term trading by a long-term capital investor [1][20][21]. Group 1: Trading Activity - On January 29, Hongkang Life reduced its holdings by 12.17 million shares, decreasing its ownership from 21.16% to 20.56% [3][23]. - The average selling price on January 29 was HKD 1.359 per share, while the opening price that day was HKD 1.13 [5][24]. - Hongkang Life had previously increased its holdings in September 2025, buying 450.4 million shares and 1.1 million shares shortly before the recent sell-off [3][24]. Group 2: Dividend Issues - Zhengzhou Bank is known as a "stingy" bank, having not paid dividends from 2020 to 2023, which led to inquiries from the China Securities Investor Services Center regarding its lack of cash dividends [26]. - In 2024, Zhengzhou Bank announced a cash dividend of RMB 0.20 per 10 shares, totaling RMB 182 million, which ranked last among 42 A-share listed banks in terms of dividend payout ratio [9][29]. - The bank's dividend yield is currently only 1.04%, significantly below the industry average [11][32]. Group 3: Stock Performance - Zhengzhou Bank's stock price has dropped over 24% from its peak of HKD 1.48 in July 2025 to HKD 1.12 [12][35]. - The stock has been on a downward trend since last year, which has contributed to Hongkang Life's decision to sell its shares [1][21]. Group 4: Management Changes - Zhengzhou Bank appointed its first female president, Li Hong, in November 2024, following a significant turnover in its management team [15][36]. - Several high-ranking officials, including assistant presidents and vice presidents, have resigned in early 2025, indicating instability within the management [15][39]. - The current management team includes Li Hong as president, with a focus on improving the bank's performance amid these changes [18][41].