Caixin
Jul 28, 2022 03:40 AM
FINANCE

Industrial Bank Gets a Boost as Fujian Government Expands Its Stake

What’s new: The biggest state shareholder of Industrial Bank Co. Ltd., one of China’s leading commercial banks, plans to inject as much as 1 billion yuan ($148 million) to expand its stake and support the bank’s digital transition, Industrial Bank said.

The finance department of the Fujian provincial government will invest between 500 million yuan and 1 billion yuan over six months starting Tuesday buying the bank’s shares on the open market in batches, Fujian-based Industrial Bank said.

The first purchase of 11.2 million shares, worth 200 million yuan, was completed Tuesday from open bidding on the stock exchange, the bank said.

Background: The government of southeastern China’s Fujian province is the largest shareholder of Shanghai-traded Industrial Bank, with an 18.85% stake as of Monday.

Stocks of Chinese banks have been fluctuating amid mounting risk concerns as the economy slows. The purchases will help restore investors’ confidence in the bank, analysts said.

Industrial Bank is accelerating a digital transition by launching a wide variety of online services targeting different groups of customers. As of the end of June, its online platform for corporate customers served more than 400,000 business clients, handling transactions totaling more than 1.12 trillion yuan, the bank said.

As of the end of March, Industrial Bank had total assets of 8.82 trillion yuan. First quarter revenue grew 6.7% to 59.4 billion yuan, with net profit rising 15.6% to 27.6 billion yuan.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)

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