Jiangyin Bank Is China's First Rural Lender Approved for Mainland IPO After 8-Year Wait
Yicai Global
/SOURCE : Yicai
Jiangyin Bank Is China's First Rural Lender Approved for Mainland IPO After 8-Year Wait

(Yicai Global) Aug. 1 -- Jiangsu Jiangyin Rural Commercial Bank Co. is to list soon on the Shenzhen Stock Exchange after an eight-year wait in the country's first rural commercial bank listing.

It will be first bank to join the A-share market since 2007, when the three urban commercial banks of Bank of Nanjing Co. [SHA:601009], Bank of Ningbo Co. [SHE:002142] and Bank of Beijing Co. [SHA:601169] listed.

Since then the China Securities Regulatory Commission has approved the initial public offering applications of over 10 urban and rural commercial lenders, of which Jiangyin Rural Commercial Bank is the first to list. It will issue up to 209 million shares.

Jiangyin Rural Commercial Bank's net profit fell consistently between 2013 and 2015, from CNY1.03 billion (USD155.46 million) in 2013 to CNY815 million in 2015, against the background of an economic decline, according to the bank's financial statements. This was accompanied by a substantial rise in distressed assets. The bank's non-performing loan ratio rose to 2.17 percent last year from 1.19 percent in 2013.

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