Chongqing Bank's 1.5% Stake to Change Hands: Chongqing Water Investment Group Plans to Reduce Holdings Up to 52 Million Shares, and Chongqing Real Estate Group is Expected to Invest Up to 58 Billion Yuan
On August 11th evening, Chongqing Bank (SH601963, stock price 10.27 yuan, total value 356.8 billion yuan) announced that its shareholder Chongqing Water Investment Group Co., Ltd. (hereinafter referred to as "Chongqing Water Investment Group") plans to reduce its holdings of Chongqing Bank A-shares by up to 52 million shares, accounting for 1.5% of the bank's total shares.
It is worth noting that this reduction in stakes may be fully absorbed by another state-owned shareholder of Chongqing Bank. The announcement shows that the Chongqing State-Owned Assets Supervision and Administration Commission (hereinafter referred to as "Chongqing SASAC") has approved the purchase of these shares by Chongqing Real Estate Group Co., Ltd. (hereinafter referred to as "Chongqing Real Estate Group"), with a transaction value not exceeding 58 billion yuan, and the transaction is expected to be completed within the period from September 2nd to November 30th.
If this transaction is fully implemented, Chongqing Water Investment Group's stake in Chongqing Bank will decrease from 8.50% to 7.00%, and Chongqing Real Estate Group and its concerted action counterparties' combined stake will increase from 5.10% to 6.60%. This equity adjustment exceeding the 1% disclosure requirement may trigger changes among shareholders.
Both parties are controlled by the Chongqing SASAC
According to Chongqing Bank's August 11th announcement, the bank received a notification letter from Chongqing Water Investment Group stating its plan to reduce its holdings of Chongqing Bank A-shares by up to 52 million shares within 15 trading days after the disclosure date. The reduction in stakes is due to the group's own development needs.
At the same time, the Chongqing SASAC has approved the purchase of these shares by Chongqing Real Estate Group, with a transaction value not exceeding 58 billion yuan. According to this total price and the number of shares involved (52 million), the single price per share will be no more than 11.16 yuan.
The announcement shows that Chongqing Water Investment Group's reduction in stakes of up to 52 million shares is in compliance with relevant regulations and historical commitments, and the transaction is expected to be completed within the period from September 2nd to November 30th. At that time, Chongqing Water Investment Group's stake in Chongqing Bank will decrease from 8.50% to 7.00%, and Chongqing Real Estate Group and its concerted action counterparties' combined stake will increase from 5.10% to 6.60%
It is worth noting that both the transferor and transferee are within the Chongqing state-owned asset system. Public data shows that Chongqing Water Investment Group and Chongqing Real Estate Group are important state-owned shareholders of Chongqing Bank, both controlled by the Chongqing SASAC.
The announcement shows that before this equity adjustment, Yaofu Capital, its concerted action counterparties, and other 11 parties collectively held 23.45% of Chongqing Bank's shares, with Yaofu Capital holding 12.14%, Chongqing Water Investment Group holding 8.50%, and the remaining parties holding 2.81%. Of the approximately 29.5 million shares held by Chongqing Water Investment Group, about 14 million were obtained before the IPO, while about 15.5 million were obtained through centralized bidding.
The two parties have previously made significant increases in their stakes
Public data shows that Chongqing Bank was established in 1996 and is one of the earliest local state-owned commercial banks in western China and the upper reaches of the Yangtze River. It also became the first and only A+H listed bank in Chengdu, Sichuan Province.
As of December 31st, 2024, Chongqing Bank had no controlling shareholders or actual controllers, with ordinary shares totaling 347.5 million shares, including 189.6 million A-shares and 157.9 million H-shares. The top ten shareholders included state-owned entities, holding a stake of 37.17%.
The financial reports show that in 2024, Chongqing Bank completed revenue of 136.79 billion yuan and net profit of 55.21 billion yuan, with year-on-year growth rates of 3.54% and 5.59%, respectively.
In the first quarter of 2025, Chongqing Bank achieved revenue of 35.81 billion yuan and net profit of 17.07 billion yuan, with year-on-year growth rates of 5.30% and 5.43%, respectively.
As of March 31st, 2025, the bank's total assets had exceeded 9 billion yuan, reaching 9316.99 billion yuan, with a year-on-year increase of 8.76%. The non-performing loan rate further decreased to 1.21%, down from 0.04% at the beginning of the year.
It is worth noting that on April 25th, Chongqing Bank released a plan to boost its valuation, including measures to improve operating quality, strengthen dividend planning, and encourage all parties to increase their stakes.
According to the disclosure, since the A-share listing, Chongqing Bank has continuously maintained a high dividend ratio of over 30%, and has implemented four rounds of stable share price increases. For example, Chongqing Real Estate Group and Chongqing Water Investment Group have respectively increased their stakes in the bank's A-shares by 3.5 million shares and 15.5 million shares in 2022 and 2023, becoming major shareholders holding over 5% of the stake.
Chongqing Bank has stated in its valuation boost plan that it will establish a reasonable, stable, and sustainable dividend scheme to increase dividend frequency and advance dividend timing. It will also encourage and support state-owned shareholders to increase their stakes, as well as invite high-quality shareholders and long-term capital to participate, optimize the shareholding structure, and enhance valuation.