Control Stake and Quickly Sell? Wuhan Rural Commercial Bank's Intensive Adjustment of Village Banks' Equity
On August 13, the China Banking Regulatory Commission issued a approval to Wuhan Rural Commercial Bank (hereinafter referred to as "Wuhan Bank") to acquire and control Hainan Tongchang Changjiang Village Bank.
However, a dramatic twist occurred the next day. On August 14, Wuhan Bank simultaneously announced the sale of its equity stakes in three Changjiang Village Banks, including Hainan Tongchang Changjiang Village Bank with a stake of 91%, which was only acquired and controlled a day ago.
This "flip-flop" move is not an isolated incident. In the first half of this year, Wuhan Bank has been intensively adjusting its equity stakes in village banks, reflecting the accelerating trend of consolidation in the industry.
"Three Steps to Control Tongchang Changjiang Village Bank"
Wuhan Bank's Intensive Acquisition and Increase in Stake
The approval shows that after acquiring Hainan Tongchang Changjiang Village Bank, Wuhan Bank will hold a total of 36.4 million shares, accounting for 91% of the equity.
According to Tianyancha information, Hainan Tongchang Changjiang Village Bank was established on December 25, 2015, with a registered capital of 4 billion yuan, and Wuhan Bank as the main initiator.
In 2025, Wuhan Bank has also received approval to increase its stake in Hainan Tongchang Changjiang Village Bank twice: on March 26, after the first increase, it held a total of 20.3 million shares; and on June 18, after the second increase, it held a total of 33 million shares.
It is worth noting that this "three-step" strategy ultimately achieved absolute control over the bank.
As of August 6, Wuhan Bank had acquired and controlled Hainan Tongchang Changjiang Village Bank, and on August 14, it announced the sale of its equity stakes in three village banks.
It is surprising that only eight days after receiving approval to control the bank, Wuhan Bank has started selling its equity stakes.
According to 2024 audit report data, these three banks are all in deep financial trouble, with Hainan Tongchang Changjiang Village Bank suffering the most severe losses (-1571.92 million yuan), followed by White Sand and Attun Changjiang Village Banks.
Wuhan Bank's "control-sell" dual-track strategy outlines the clear path for its village bank reform.
In 2009, Wuhan Bank was established and has since set up 47 village banks in six provinces (cities), with a total of 239 branch institutions as of the end of 2024.
Financial data shows that in 2024, the bank's operating income decreased by 3.78% year-on-year, and its net profit fell by 36.73%, mainly due to a decrease in interest income and an increase in credit losses.
According to industry trends, since last year, small banks have been intensively consolidating and reorganizing, with the "village reform" model gaining momentum.