Core Viewpoint - Local small and medium-sized banks in China are accelerating capital replenishment through targeted fundraising, which has become a key choice for external capital injection [1][3][4] Group 1: Targeted Fundraising Activities - In Shaanxi, the Xi'an Yanta Hengtong Village Bank has been approved to raise 11.23 million shares through targeted fundraising, with Zhejiang Wenzhou Longwan Rural Commercial Bank as an investor [3] - The Cuiping Hengtong Village Bank in Tongchuan also received approval for a targeted fundraising plan to raise 3.68 million shares, with the same investor [3] - The Baoding Regulatory Bureau approved the targeted fundraising plan for the Quyang Rural Credit Cooperative, allowing it to raise no more than 70 million shares within six months [3] Group 2: Involvement of Local State-owned Enterprises - The Jingmen Regulatory Bureau approved the entry of local state-owned enterprises as shareholders in the Hubei Jing Shan Rural Commercial Bank, with two companies holding 30 million shares and 20 million shares respectively [4] - The involvement of local state-owned shareholders not only provides new capital but also enhances operational efficiency and risk resistance through resource integration and policy alignment [4] Group 3: Challenges and Governance Issues - Local small and medium-sized banks face challenges in capital replenishment compared to larger banks, making targeted fundraising a more suitable option due to their smaller scale and local ownership structure [4] - Analysts emphasize the importance of optimizing capital structure and governance through targeted fundraising, while also highlighting the need for refined equity management and standardized shareholder behavior to prevent risks [5] - Regulatory bodies have mandated banks to strengthen equity management, optimize ownership structure, and control related party transactions to mitigate risks [5]