Core Viewpoint - Luzhou Bank's planned non-public issuance of H-shares amounting to HKD 18.32 billion has been postponed due to shareholder feedback, with the board deciding not to present the related proposal at the upcoming annual general meeting [2][3] Group 1: Issuance Details - The bank's board had previously approved a proposal to issue up to 1 billion new H-shares, which would represent approximately 36.79% of the existing issued share capital and 132.78% of the existing H-shares [3] - The net proceeds from the issuance were intended to supplement the bank's core tier one capital [3] Group 2: Current Financial Status - Luzhou Bank's operational status remains normal, and the postponement of the issuance will not adversely affect its daily operations or overall shareholder interests [3] - As of the end of 2024, the bank's core tier one capital adequacy ratio was reported at 8.27%, which is below the national average of 11.00% for commercial banks [5] Group 3: Market Conditions and Challenges - The planned issuance is categorized as a "broken net asset issuance," as the bank is currently trading below its net asset value [4] - The expected issuance price is set to be no less than HKD 1.85 per share, which is approximately 50% of the bank's net asset value [4] - Analysts have noted that low-priced issuances can dilute net asset value and harm existing shareholders' interests, making it challenging for banks, particularly those with state-owned shareholders, to set issuance prices below net asset value [5]