Trading of Xiamen Bank Shares Halted Day After IPO
What’s new: Banking sector shares traded on the Chinese mainland closed down 1.5% on Wednesday after some lenders reported worse-than-expected financial results for the third quarter.
Trading of Xiamen Bank Co. Ltd.’s shares was temporarily suspended on Wednesday morning following a 10% fall, one day after the bank debuted in Shanghai. Trading suspension is rarely seen in a bank that has just gone public.
On the same day, shares of Shanghai-listed Jiangsu Changshu Rural Commercial Bank Co. Ltd. were also temporarily suspended after steep declines.
What’s the background: The stock price drops came amid market concerns over banks’ lackluster earnings. Banks earlier warned of rising risks and business pressure in the second half this year as the government steadily phased out supportive policies that had carried them through the epidemic.
Changshu Rural Commercial Bank’s net interest margin, a key profitability metric, fell 23 basis points to 3.24% at the end of September from the end of June, according to Minsheng Securities Co. Ltd.’s calculation of the bank’s financial data.
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