Zhongyuan Bank Co., Ltd. (“Zhongyuan Bank”; Stock Code: 1216), the largest city commercial bank in Henan, with First Capital Securities Limited (“First Capital Securities”), a wholly-owned subsidiary of China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269), as a Joint Bookrunner and a Joint Lead Manager of its listing, went public on the Main Board of the Stock Exchange of Hong Kong Limited today. Zhongyuan Bank is the second largest mainland enterprise IPO in Hong Kong since the beginning of 2017.
Mr. Henry Hao, Executive President of CFCG & Chairman of First Capital Fund Management Limited, congratulated Zhongyuan Bank on its listing in Hong Kong on behalf of the Group, and said, the listing represented an significant step for Zhongyuan Bank in taking its business international, and CFCG is very positive about the development prospects of Zhongyuan Bank and is honored that First Capital Securities under the Group can serve as a Joint Bookrunner and Joint Lead Manager of the IPO of the Bank, and that the Group will continue to provide its full support to Bank in expanding business in Hong Kong, with the hope to see the Bank developing in leaps and bounds.
Zhongyuan Bank offered a total of 3.3 billion shares globally, with share price fixed at HK$2.45 each. The net proceeds from the exercise amounted to approximately HK$7.115 billion. The Bank afforded positive share price performance on its first trading day, reaching half-day high at HK$2.58 per share, approximately 5.3% higher than the offer price, and closed at HK$2.48 mid-trading day with trading volume totaling approximately HK$39.9 million.
Zhongyuan Bank is based in Henan Province, which is in Central China bridging inland China with coastal areas of the country. Benefiting from policies that encourage economic development, Central China has experienced rapid economic growth in recent years and reported GDP amounting to RMB4,016 billion in 2016. Henan Province ranked first among the six provinces in Central China in terms of nominal GDP in 2016, and her banking industry has thrived alongside her rapid economic development. According to the Henan Statistical Yearbook published by the Bureau of Statistics, Henan, as at 31 December 2016, the total deposits in and loans of financial institutions in the banking industry of the province were RMB5,498 billion and RMB3,714 billion respectively, up at the compound annual growth rates (“CAGRs”) of 15.5% and 16.0% respectively, as compared to the amounts as at 31 December 2011.
As at 31 December 2016, Zhongyuan Bank’s total assets, total deposits from customers, total loans to customers and total equity were RMB433,071.4 million, RMB245,352.8 million, RMB164,888.5 million and RMB35,498.6 million, respectively. In 2016, its net profit was RMB3,360.1 million. According to the China Banking Regulatory Commission Henan Office, the Bank ranked first among all city commercial banks in Henan Province in terms of total assets, total deposits from customers, total loans to customers and total shareholders’ equity for the year ended 31 December 2016.
Zhongyuan Bank will continue to seek guidance from its three major development strategies – “to offer traditional banking services with unique features, to innovate and achieve business breakthroughs and to strive for leadership for its future businesses” – to assist it in establishing stringent risk management and internal control systems as well as continuing to offer efficient, convenient and customized innovative financial services to customers, which will enable the Bank to expand service scope and strengthen its brand image continuously.
At the listing ceremony, Mr. Dou Rongxing, Chairman of Zhongyuan Bank, said, “Interest rate liberalization has presented the banking industry with challenges as well as opportunities. Zhongyuan Bank is confident of the development prospects of its own business and the banking industry. Our customer base will continue to be made up of mainly small and medium enterprises and we will actively increase investment and exertion at building our business.”