Bank A-share IPO is stepping on the brakes "buying blood" channel is accelerating the expansion
Our reporter Lu Dong
In the past 2019, the bank's A-share IPO showed a "blowout" trend. During the year, a total of 8 banks successfully landed on the A-share market, and it was tied with 2016 as the year with the largest number of bank IPOs.
In stark contrast to last year ’s A-share IPO harvest, as of now, no bank has been listed on the A-share market.
Guo Yixin, a senior analyst at Industrial Research, said in an interview with a “Securities Daily” reporter that the bank ’s IPO has been advancing slowly in 2020, mainly because the valuation of bank stocks has continued to decline this year, and the emergence of the epidemic has also caused uncertainty in the quality of bank assets. "This may affect investors' willingness to participate in bank IPOs to a certain extent, and also delays the bank's core capital raising."
First 5 months
No bank realizes IPO
2019 is undoubtedly a high-yield year for the number of bank A-share IPOs. Under the environment where regulators encourage banks to replenish capital, the bank A-share IPO has accelerated significantly. In that year, eight banks achieved listing. Among them, two bank stocks were listed in January and March 2019 respectively. Throughout 2018, only three banks, Bank of Chengdu, Bank of Zhengzhou, and Bank of Changsha, had A-share IPOs.
At the same time, the types of banks listed on the A-share market last year also diversified. Among the many listed banks, there are large state-owned banks and joint-stock banks, as well as local banks such as city commercial banks and rural commercial banks.
In addition, 2019 is also the year in which banks have the largest number of "Return A". Among the banks that were listed that year, half of them were previously listed on H shares, namely Qingdao Bank, Yunong Commercial Bank, Zheshang Bank and Postal Savings Bank.
After entering 2020, the bank's A-share IPO seems to have pressed the pause button. Although five months have passed so far, no bank has achieved A-share listing during the year.
Xu Chengyuan, chief financial analyst of Dongfang Jincheng, said in an interview with a "Securities Daily" reporter that after eight banks have been listed on the A-share market in 2019, the remaining listed banks are still in the pre-disclosure stage of information It takes a while to review.
There has been no new listed banks for a long time, which caused the phenomenon of “thinness” of the number of queuing banks that appeared last year no longer, and the banks outside the door have grown.
According to the latest data disclosed by the China Securities Regulatory Commission, as of now, the number of banks under normal queuing status has reached as many as 17. Among them, there are 15 banks that are in the state of “pre-disclosure update” in the listing review status, accounting for nearly 90%. None of the banks queuing up for listing went to the status of “suspend review” or “stop review”.
At the same time, the bank's queuing time is gradually being opened. "Securities Daily" reporter found that the acceptance date of Lanzhou Bank is June 2016, which has been up to 4 years ago.
In 2019, as the Postal Savings Bank and Zheshang Bank completed the A-share IPO in the fourth quarter of the year, the six largest state-owned banks have all gathered in the A-share market, and there are only a handful of unlisted joint-stock banks. Because of this, all the banks in the current queue are from city commercial banks, rural commercial banks and other local banks, which will become the main force for future listings.
Perpetual bonds, tier 2 capital bonds
Release speed
Commercial banks, especially small and medium-sized banks, still face greater demand for capital replenishment. Although the bank ’s IPO has not made any progress, the issuance of perpetual bonds and tier 2 capital bonds has been promoted by the regulatory department ’s support for the bank ’s multi-channel supplementary capital policy. Contribute to the bank's supplementary capital is not small.
Since the curtain on the issuance of perpetual bonds by commercial banks was officially opened last year, supplementing Tier 1 capital through the issue of perpetual bonds has increasingly become the most popular capital supplement tool for banks. Since the beginning of this year, the number of banks replenishing capital through the issue of perpetual bonds has continued to grow. Statistics show that in the first five months of this year, banks issued a total of 10 perpetual bonds with a total amount of 274 billion yuan. Among the banks that have issued perpetual bonds, not only state-owned large banks or joint-stock banks such as the Postal Savings Bank, Ping An Bank, but also small and medium-sized local banks account for a large proportion.
In addition, the "Securities Daily" reporter found after statistics that as of now, 11 banks have successfully issued Tier 2 capital bonds this year, with a total issue size of 95.73 billion yuan. In addition, there are 10 banks that have issued tier 2 capital bond plans that have been approved by the regulatory authorities, and the maximum total issuance scale will reach 68.8 billion yuan.
Guo Yixin told the "Securities Daily" reporter that the bank's supplementary capital is multi-level and comprehensive. IPO, fixed increase, and convertible debt to equity conversion can all supplement the most scarce core tier one capital of banks; perpetual debt helps to supplement other tier one capital; and tier two capital debt helps to supplement tier two capital. The level of core capital is high, but it often takes a long time and is difficult to replenish. When interest rates are relatively low, the timely issuance of capital bonds, including perpetual bonds and tier 2 capital bonds, will help supplement the other two levels of capital. At the same time, the bank's replenishment of capital through multiple channels will also help strengthen its financial services to the real economy and increase support for small, medium and micro enterprises. (Securities Daily)