Nanchang State Firm Takes Control of Private Lender Yumin Bank

00:00

00:00/00:00

Listen to this article 1x

What’s new: A financial holding company backed by the Nanchang city government has bought a controlling stake in Jiangxi Yumin Bank Co. Ltd., marking the first time a state-owned company has taken control of one of China’s private lenders.

The National Financial Regulatory Administration has approved Nanchang Financial Holding Co. Ltd.’s acquisition of a 30% stake in the Jiangxi lender from its controlling shareholder, Zhengbang Group Co. Ltd., according to the regulator’s website.

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Nanchang Financial Holding Co. Ltd. bought a 30% stake in Jiangxi Yumin Bank from Zhengbang Group, making it the controlling shareholder.
Jiangxi Yumin Bank, started in 2019, is the 18th privately-owned bank in China and has faced financial struggles, reporting a net loss of 242 million yuan in the first three quarters of 2023.
Zhengbang Group, a major pork producer, has faced debt issues since 2020, resulting in its subsidiary's bankruptcy restructuring in 2023.

AI generated, for reference only

Who’s Who

Jiangxi Yumin Bank Co. Ltd.: Jiangxi Yumin Bank Co. Ltd., established in 2019 with backing from Zhengbang Group and other private investors, is one of China’s 19 privately-owned commercial banks. The bank has struggled financially, reporting a 242 million yuan net loss and a revenue of 254 million yuan for the first three quarters of 2023, and has total assets of 17.1 billion yuan with liabilities of 15.5 billion yuan as of September 2023.

Nanchang Financial Holding Co. Ltd.: Nanchang Financial Holding Co. Ltd. is a financial holding company backed by the Nanchang city government. It recently acquired a controlling 30% stake in Jiangxi Yumin Bank Co. Ltd., becoming the first state-owned company to take control of a private lender in China.

Zhengbang Group Co. Ltd.: Zhengbang Group Co. Ltd. is one of China's leading hog farmers and pork producers. The company has faced significant financial challenges since 2020 due to aggressive business expansion and declining pork prices. In 2023, its Shenzhen-listed unit, Jiangxi Zhengbang Technology Co. Ltd., entered bankruptcy restructuring after reporting insolvency in 2022.

Jiangxi Zhengbang Technology Co. Ltd.: Jiangxi Zhengbang Technology Co. Ltd. is a Shenzhen-listed unit of Zhengbang Group Co. Ltd., one of China's leading hog farmers and pork producers. The company entered bankruptcy restructuring in 2023 after reporting insolvency in 2022, driven by aggressive business expansion and a decline in pork prices, a typical risk of the "hog cycle."

AI generated, for reference only

What Happened When

2019：: Jiangxi Yumin Bank began operations with backing from Zhengbang and eight other private investors.

Since 2020：: Zhengbang has been mired in debt due to aggressive business expansion and a subsequent decline in pork prices.

2022：: Jiangxi Zhengbang Technology Co. Ltd. reported insolvency.

In 2023：: Jiangxi Zhengbang Technology Co. Ltd. entered bankruptcy restructuring.

By the end of September 2023：: Jiangxi Yumin Bank reported a net loss of 242 million yuan for the first three quarters of 2023, with total assets of 17.1 billion yuan and liabilities of 15.5 billion yuan.

AI generated, for reference only