On February 18, the official website of the China Banking and Insurance Regulatory Commission issued an administrative penalty announcement, and The Bank of Changsha (601577. SH) and two of its branches were fined for loan irregularities flowing into the real estate sector.
In the first fine, Changsha Bank directly flowed into real estate enterprises due to business purpose loans, loan management was not in place, and business purpose loans indirectly flowed into real estate enterprises. In accordance with Article 46 of the Banking Supervision and Administration Law of the People's Republic of China, the Hunan Supervision Bureau of the China Banking and Insurance Regulatory Commission fined Changsha Bank a total of 1.3 million yuan.
In the second fine, the Yongzhou Branch of the Small Business Credit Center of Changsha Bank Co., Ltd. was fined 250,000 yuan by the Yongzhou Supervision Branch of the China Banking and Insurance Regulatory Commission for illegally flowing into the real estate sector for business purposes.
In the third fine, the Zhangjiajie Branch of Changsha Bank was fined 400,000 yuan by the Zhangjiajie Supervision Branch of the China Banking and Insurance Regulatory Commission for illegally flowing into the real estate sector for personal consumption loans.
At the same time, Yu Hao, then the retail credit relationship manager of Changsha Bank's Zhangjiajie Branch, assumed direct responsibility for the illegal flow of personal consumption loans into the real estate sector of the branch, and the Zhangjiajie Banking and Insurance Regulatory Bureau warned him.
In March 2021, the China Banking and Insurance Regulatory Commission, the Ministry of Housing and Urban-Rural Development, and the Chinese Minmin Bank jointly issued the Notice on Preventing Illegal Flow of Loans for Business Purposes from the Real Estate Sector, strengthening loan management from nine aspects to solve the problem of affecting the effectiveness of real estate regulation and control policies and squeezing out credit resources that support the development of the real economy, especially small and micro enterprises.
It is reported that Changsha Bank landed on the main board of A-shares in 2018 and is the first listed bank in Hunan Province, but the recent situation is somewhat difficult to say.
On November 12 last year, Changsha Bank issued an announcement on the resignation of the chairman, showing that due to job changes, Zhu Yuguo applied to resign as a director, chairman and chairman of the strategic committee of Changsha Bank. After his resignation, Zhu Yuguo no longer held any position in Changsha Bank.
It is quite puzzling that Zhu Yuguo's term of office is from January 2019 to January 2022, which means that he has proposed his resignation less than two months before the change of date.
Some investors speculate or are related to performance, and Changsha Bank's revenue growth rate in 2020 has rarely slipped to single digits. The revenue growth rate from 2017 to 2019 was 20.79%, 14.95% and 22.07%, respectively, compared with 5.91% in 2020.
At the same time, the growth rate of net profit also fell from 23.22% in 2017 to 5.08% in 2020; the deduction of non-net profit fell from 22.50% to 4.88%.
In addition, the stock price performance of Changsha Bank last year was also difficult to satisfy investors, and after reaching its peak in March 2021, that is, 11.02 yuan / share, the stock began to fall for a long time. As of the close of trading on December 31, 2021, its stock price was 7.81 yuan per share, down 29% from its highest point.
On June 2, 2021, Changsha Bank triggered the conditions for the launch of measures to stabilize the stock price, and 17 managers, including directors and senior management, promised to increase their shareholdings in a total amount of not less than 1.3791 million yuan. However, this number obviously did not satisfy investors, and it seems to be a small fight for Changsha Bank, which has a market value of more than 30 billion yuan.
Bad things continue, the stock price fell did not wait for the reduction of major shareholders, but was illegally reduced by the major shareholder Industrial Investment, and the shares were frequently pledged and auctioned by major shareholders.
As of the third quarter of 2021, 43 million shares of Hunan Friendship Apollo Commercial Co., Ltd., the third largest shareholder of Changsha Bank, were pledged; the sixth largest shareholder, Changsha Real Estate (Group) Co., Ltd., and the eighth largest shareholder, Changsha Tongcheng Industrial (Group) Co., Ltd., pledged 84.5 million shares and 75.1 million shares respectively; the seventh largest shareholder, Hunan Xinhualian Construction Engineering Co., Ltd., pledged 163 million shares, and 26.03 million shares were frozen.
It is worth noting that Xinhualian Petroleum, an affiliate of Xinhualian Construction, was applied to the court for compulsory enforcement by Sanxiang Bank for failure to repay the financing principal of Hunan Sanxiang Bank as agreed. The equity has been auctioned for two rounds before, but both have been auctioned because no one has signed up.