Delayed 6 Months + Breaks Through Price Ceiling! China Merchants Bank's Strategic Adjustment Boosts Shareholding by Up to 14 Billion Yuan
Recently, China Merchants Bank (601838.SH) announced the progress of its actual controller's shareholder increase plan and adjustment announcement. The announcement showed that due to the continuous surge in China Merchants Bank's stock price exceeding the previously set 17.59 yuan per share ceiling, the actual controller, the State-owned Assets Supervision and Administration Commission of Chengdu City (SASAC), and the main shareholders are planning to adjust and modify the original increase plan, including the increase amount, number of shares, and implementation period.
The adjusted increase plan shows that China Merchants Bank's actual controller, SASAC, and the main shareholders will cancel the previously set 17.59 yuan per share ceiling and instead implement a "price-free" increase strategy, allowing them to increase their stake in China Merchants Bank at any time within the next 12 months without setting a price range.
The adjustment is aimed at demonstrating the commitment of China Merchants Bank's shareholders to long-term investment and development, as well as to support the bank's high-quality growth. The actual controller, SASAC, has committed to not reducing its stake in China Merchants Bank during the implementation period.
As of August 8, the total amount of shares held by China Merchants Bank's shareholders is approximately 12.73 billion yuan, accounting for about 30.03% of the bank's total share capital.
According to Wang Pengbo, a senior analyst at consultancy firm Botong Financial, the continuous surge in China Merchants Bank's stock price above the previously set ceiling reflects investors' recognition and optimism towards the bank's long-term growth prospects. The bank's shareholders are willing to invest clearly defined amounts of funds to implement the increase plan, demonstrating their commitment to long-term investment and development.
In addition, China Merchants Bank has announced that it will distribute a cash dividend ratio not lower than 30% per year, which is expected to boost shareholders' returns.