For seven years, Weihai Bank, which had been queuing for A shares for two years and failed to go public, turned to Hong Kong for listing.

On April 15, the Hong Kong Stock Exchange disclosed the H-share prospectus of Weihai City Commercial Bank Co., Ltd. (hereinafter referred to as “Weihai Bank”), and the joint sponsor was Huatai Financial Holdings (Hong Kong) Limited, China International Capital Corporation Hong Kong Securities Limited and China Merchants Bank International Capital Limited.

On April 8th, according to the official website of the China Insurance Regulatory Commission, Weihai Bank ’s request for an IPO in Hong Kong was approved, as well as the company ’s articles of association applicable after its H shares were listed. . Generally speaking, companies can log in to the Hong Kong stock market about a year after submitting their applications, and if they are fast, it will only take a few months.


Having queued for two years to fail to list A shares

In fact, as early as early 2013, Weihai Bank had already begun preparations for a listing plan. On April 1, 2016, Weihai Bank formally submitted its application for listing on the Shanghai Stock Exchange.

After two years of queuing to apply for A-share listings, in August 2018, Weihai Bank, which was already in a “pre-disclosure update” state, chose IPO to terminate the review. Weihai Bank said at the time: “In view of the uncertainty of the listing timetable for the overall approval process of the A-shares at that time, we decided to withdraw our A-share applications in order to supplement our funds through other financing methods.”

< / div> In addition to the strict A-share approval process, Weihai Bank’s operating performance at that time may have failed to list A-shares. Due to the slowdown of the domestic economy and the deterioration of the local credit environment, Weihai Bank’s non-performing loan balance scale and non-performing loan rate have risen for six consecutive years. From the end of 2013 to the end of 2018, Weihai Bank’s NPL ratios were 0.46%, 0.70%, 0.97%, 1.42%, 1.47%, and 1.82%, respectively.

According to Weihai Bank ’s annual report, from 2016 to 2018, Weihai Bank ’s operating income was 3.994 billion yuan, 3.894 billion yuan, 3.846 billion yuan, in 2017, In 2018, they decreased by 2.51% and 1.23% year-on-year respectively.

From the financial data of Weihai Bank in recent years, the total assets of Weihai Bank increased from 204.5 billion yuan at the end of 2017 to 224.6 billion yuan at the end of 2019. From 2017 to 2019, Weihai Bank’s net profit reached 16.03