Core Viewpoint - The transfer of approximately 9.42 billion shares (40.92% of total equity) of Changcheng Huaxi Bank is set to occur, leading to a change in the actual control of the bank, with a minimum transfer price of 4.332 billion yuan [1][5][6]. Group 1: Share Transfer Details - The transfer is initiated by China Great Wall Asset Management Co., Ltd. (Great Wall Asset), which is the actual controller of the bank and will no longer hold any shares post-transfer [2][4]. - The transfer plan has been approved by the shareholders' meeting of Great Wall Asset and has received approval from the Ministry of Finance [5]. - The transfer will result in a shift of actual control of the bank, with other shareholders waiving their preemptive rights [6]. Group 2: Requirements and Implications - The acquiring party must be a financially strong and profitable entity, as mandated by regulatory authorities for bank shareholders [3][10]. - After the transfer, the new owner must promptly register a name change, and the bank cannot continue using the name or operational qualifications of Great Wall Asset and its subsidiaries [7]. Group 3: Strategic Context - The transfer is part of a broader strategy to enhance local financial institutions' capabilities and align with national financial resource optimization efforts [8][14]. - The bank aims to strengthen its local attributes and provide tailored financial solutions for key industries and projects in Sichuan, contributing to the Chengdu-Chongqing economic circle [17][18]. Group 4: Historical Context and Performance - Changcheng Huaxi Bank, originally established as Deyang Bank in 1998, has evolved into a state-controlled bank with over 150 billion yuan in total assets, marking a 168% growth over ten years [11][13]. - In 2024, the bank reported an operating income of 2.37 billion yuan, a year-on-year decline of 11.3%, while net profit increased by 12.4% to 450 million yuan [13].

Core Viewpoint - Luzhou Bank's large-scale capital increase plan may be aborted due to shareholder objections, leading to the postponement of the proposal for non-public issuance of H-shares [1][3]. Group 1: Capital Increase Plan - Luzhou Bank announced on June 25 that it would delay submitting the proposal for the non-public issuance of up to 1 billion new H-shares to the shareholders' meeting due to shareholder feedback [1][3]. - The original plan aimed to raise at least HKD 1.85 billion (approximately USD 236 million) through the issuance of H-shares, with a proposed issuance price potentially set at half of the bank's net asset value per share for 2024 [1][5][6]. - The bank's board had previously approved the issuance plan during a meeting on April 1, with the intention to discuss it at the upcoming shareholders' meeting [2]. Group 2: Financial Position - As of the end of last year, Luzhou Bank's total assets exceeded RMB 170 billion, and it operates branches in Chengdu, Meishan, and Suining [4]. - The bank's core Tier 1 capital adequacy ratio was reported at 8.27%, which, while meeting regulatory requirements, is significantly below the national average of 11% for commercial banks [5]. Group 3: Market Context - The bank's planned issuance would have marked it as one of the few listed banks outside of state-owned enterprises to utilize a "broken net" issuance method for core Tier 1 capital replenishment [6][7]. - Luzhou Bank is part of a broader trend in Sichuan, where local city commercial banks are undergoing significant equity restructuring, with several banks increasing their state-owned shareholding ratios in recent years [8][9].