The specific use of the 200 billion yuan special debt of small and medium-sized banks is still being disclosed. According to incomplete news statistics, as of now, 10 provinces and autonomous regions in Guangdong, Shanxi, Zhejiang, Guangxi, Inner Mongolia, Sichuan, Jiangxi, Liaoning, Heilongjiang, and Fujian have announced plans for the issuance of special bonds for small and medium-sized banks.
From the perspective of the amount, the total amount of special debt used by small and medium-sized banks is 95.2 billion yuan. Shanxi, Heilongjiang, Guangxi, Sichuan, Guangdong, Liaoning, Inner Mongolia, Jiangxi, Zhejiang, and Fujian have special debts of 15.3 billion yuan, 12.3 billion yuan, 11.8 billion yuan, 11.4 billion yuan, 10 billion yuan, 10 billion yuan, 85 100 million yuan, 5.9 billion yuan, 5 billion yuan, 5 billion yuan. At present, a total of 100 small and medium-sized banking institutions have been injected. 
200 billion yuan of small and medium-sized bank special debts used. News reporter Chen Peizhen statistics
Among them, according to the special bonds of small and medium banks issued by the Inner Mongolia Autonomous Region, the amount of special bonds obtained by small and medium banks is 16.2 billion yuan. After the issuance of 8.5 billion yuan, there is still 7.7 billion yuan left, or will be repaid Small and medium banks in Inner Mongolia will receive relevant funds.
From the perspective of maturity, the term of special bonds of small and medium-sized banks in the 10 provinces and regions is 10 years; from the perspective of capital injection, there are currently two ways of capital injection for special bonds of small and medium-sized banks: The access shares between financial holding groups and the financial departments of prefectures and cities inject capital in the form of equity conversion agreement deposits; from the perspective of capital injection banks, the rural credit system accounts for the majority in number. In addition, the special bonds of small and medium-sized banks also helped prepare for the establishment of provincial-level city commercial banks in Shanxi and Liaoning.
Capital injection methods include inter-shares and share-transfer deposit agreements
On July 1st last year, the State Council executive meeting decided to add local government special projects in 2020 A certain amount is arranged in the bond distribution, allowing local governments to explore new ways to replenish the capital of small and medium-sized banks by subscribing for convertible bonds in accordance with laws and regulations.
From the perspective of current capital injection methods, Shanxi, Guangdong, Liaoning, and Zhejiang provinces have injected special debt funds into small and medium-sized banks by way of connecting shares between financial holding groups; Guangxi, Sichuan, Inner Mongolia, Jiangxi, Fujian 5In the provinces and regions, the financial department of the transferred city injected the special debt into the small and medium-sized banks in the form of equity swap agreement deposits; Heilongjiang Province mixed the above two capital injection methods.
It is worth mentioning that the conversion agreement deposit is an innovative capital tool to supplement the capital of small and medium banks. It is a local government bond that can be used to supplement the capital of small and medium banks. Funds are injected into the target bank in the form of deposits to replenish the target bank’s capital. At the same time, the stock transfer agreement stores the deposits in a long-term agreement with the target bank, which stipulates that when the conditions for the conversion are met, the deposit will be converted into ordinary shares, or the deposit will be redeemable when the transfer agreement After the return, the target bank will repay the principal and interest.
Most of the funds injected are small and medium banks in the rural credit system
The rural credit system represented by rural commercial banks and rural credit cooperatives accounted for the majority of capital injections, especially in Heilongjiang Province.
There are 44 banks in Heilongjiang Province that accept capital injections. Among the 44 small and medium-sized banks, with the exception of Longjiang Bank, which is a city commercial bank, the remaining 43 are rural financial institutions, including 17 rural commercial banks and 26 rural credit unions. In terms of the allocation quota, Longjiang Bank will receive 3.5 billion yuan to supplement capital, and 43 rural credit institutions will receive 8.8 billion yuan in total to supplement capital.
Heilongjiang Province’s 12.3 billion yuan in support of special bonds for small and medium-sized banks has two capital injection methods: one is to supplement the user bank by means of transfer agreement deposits by the financial bureaus at all levels The total bond funds of its 16 banks totaled 5.32025 billion yuan; the second is that Heilongjiang Financial Holding Group Co., Ltd. is the main body of capital operation, and the bond funds of 28 banks are used to inject capital to replenish capital through indirect shares. 6.97975 billion yuan.
Two listed banks in Jiangxi Province received capital injection
Among the banks that received 200 billion yuan of capital injection from small and medium-sized banks, two are listed banks.
Jiangxi Bank (01916.HK) and Jiujiang Bank (06190.HK), two listed banks in Jiangxi Province, have announced that they will carry out equity swap agreement deposit business to connect with local government special bonds funds.
May 5th, JiangWest Bank issued an announcement stating that it intends to apply for a deposit business of no more than 3.9 billion yuan to connect with local government special bond funds and to supplement other Tier 1 capital. On June 10, Bank of Jiujiang issued an announcement showing that, in accordance with the unified deployment of the Jiangxi Provincial Department of Finance, Bank of Jiujiang intends to apply for a deposit business of no more than 2 billion yuan to connect with local government special debt funds and fully supplement other Tier 1 capital. .
According to the announcement, Jiangxi Bank’s targeted issuance is targeted at the Jiangxi Provincial Department of Finance or its designated institutions. Jiujiang Bank’s deposit is subject to the Jiujiang Municipal Finance Bureau, and the targeted issuance targets are qualified municipal state-owned enterprises under the Jiujiang SASAC (excluding Jiujiang State-owned Assets Management Co., Ltd.).
Assisting in the preparation of the establishment of new city commercial banks
It is worth noting that Shanxi and Liaoning provinces used funds raised from special bonds for the development of small and medium-sized banks as new establishments. City commercial banks contributed capital, and both provinces injected special debt funds through the way of connecting shares between financial holding groups.
The documents related to special bonds of small and medium-sized banks disclosed by Shanxi Province show that the capital of Shanxi provincial-level city commercial banks is mainly from the Shanxi Provincial Government’s issuance of special bonds, that is, the funds raised by the bonds in this period. , Through Shanxi Financial Investment Holding Group Co., Ltd. to inject indirect shares and other methods.
The documents related to the special debt of small and medium banks disclosed by Liaoning Province show that in March 2021, the Liaoning Provincial Government approved Liaoning Financial Holding Group Co., Ltd. (hereinafter referred to as Liaoning Financial Holding) Initiated the establishment of a new city commercial bank, and the funds raised from the bond will be injected into the new city commercial bank through Liaoning Financial Holdings.