Cases of illegal reduction of A-share bank’s current shareholders. On April 20, Bank Of Chongqing Co.Ltd(601963) ( Bank Of Chongqing Co.Ltd(601963) ) announced that Chongqing Transportation Financing Guarantee Co., Ltd. (hereinafter referred to as “transportation financing guarantee”), the concerted action of the bank’s shareholders holding more than 5%, illegally reduced all the shares of the bank and cashed out more than 36 million yuan.
In the view of insiders, shareholders’ violations and clearance and reduction inevitably have a certain negative impact. In the announcement, the transportation financing guarantee also apologized for the negative impact of this illegal reduction on Bank Of Chongqing Co.Ltd(601963) , all shareholders, etc. Industry insiders believe that some of the illegal reduction of shareholders are deliberate or unintentional, but in any case, it is suggested to increase the punishment and increase the cost of violations.
stock clearance and reduction after less than half a year
The illegal reduction of transportation financing guarantee began on February 16 this year and ended on March 2. During this period, transportation financing guarantee reduced its holdings by Bank Of Chongqing Co.Ltd(601963) 8 times through centralized bidding trading, with a total reduction of 4052300 shares and cash out of 36064900 yuan, which was a clearance reduction.
It is reported that the transportation financing guarantee is the person acting in concert of Chongqing Yufu capital operation group Co., Ltd. (hereinafter referred to as “Chongqing Yufu”), the second largest shareholder of Bank Of Chongqing Co.Ltd(601963) company. According to the announcement, Bank Of Chongqing Co.Ltd(601963) did not receive the letter on the change of Bank Of Chongqing Co.Ltd(601963) shares held by the company issued by the transportation financing guarantee until April 19.
According to the relevant provisions of the Shanghai Stock Exchange: “if major shareholders and directors, supervisors and senior managers reduce their shares through centralized bidding trading, they shall report the reduction plan to the bourse for filing 15 trading days before the first sale of shares and make an announcement.” It is not difficult to see that the reduction of transportation financing guarantee is obviously illegal Bank Of Chongqing Co.Ltd(601963) also said that the transportation financing guarantee did not disclose the plan and progress of the reduction before and during the reduction, nor did it timely notify Chongqing Yufu and the Bank of the reduction and make an announcement. The above behavior constituted an illegal reduction.
It is not a long time for the associated press to obtain the above-mentioned financing guarantee. It is reported that due to the dispute over the loan contract, the transportation financing guarantee applied to the people’s Court of Yuzhong District, Chongqing for deducting Bank Of Chongqing Co.Ltd(601963) 4052300 shares held by Chongqing mutual industry (Group) Co., Ltd. (accounting for 0.12% of the total share capital) Bank Of Chongqing Co.Ltd(601963) in this regard, it is emphasized that this part of the shares held by the transportation financing guarantee are obtained through non transaction transfer due to judicial enforcement.
According to Alibaba auction network, Bank Of Chongqing Co.Ltd(601963) 4052300 shares held by Chongqing mutual industry (Group) Co., Ltd. were sold on October 9 last year, with a starting price of 369755 million yuan.
why illegal clearance and reduction
Why is the transportation financing guarantee illegally reduced? It attributed the violation of the reduction to the negligence of employees and their lack of familiarity with legal rules. For the original intention of the reduction, the transportation financing guarantee explained that it was considered based on the disposal of counter collateral and the return of operating funds. In the view of insiders, no matter what reason, it is an indisputable fact that it constitutes illegal reduction.
From the perspective of reduction price, the average reduction price of transportation financing guarantee is not low at present. According to the data, the average reduction price of transportation financing guarantee was 8.9 yuan / share. As of the closing on April 20, Bank Of Chongqing Co.Ltd(601963) closed at 8.56 yuan / share.
A securities lawyer said that if the illegal reduction of shareholders does not involve short-term trading, they may be more subject to the punishment measures of self-discipline supervision of the exchange or supervision of the Securities Regulatory Bureau in the later stage.
“Illegal reduction of shares may give investors the impression that they are not optimistic about the development prospect of the company.” Industry insiders said. Shen Meng, executive director of Xiangsong capital, said that according to the regulations, illegal reduction will be punished. However, if the company’s fundamentals are strong or its future development prospects are good, the reduction itself does not change the confidence and views of major shareholders on listed companies Bank Of Chongqing Co.Ltd(601963) also emphasized in the announcement that the shares obtained by the transportation financing guarantee were not traded in the secondary market and were not for the purpose of long-term holding.
Illegal reduction of traffic financing guarantee in A-Shares is not an isolated case. Through keyword search, 17 listed companies have issued announcements on illegal reduction of shareholders’ holdings since this year.
“In addition to being unfamiliar with the trading rules and other factors, the illegal reduction of some shareholders, especially private shareholders, does not rule out the possibility of intentional reduction in order to avoid the negative impact of market fluctuations on their own interests.” Shen Meng said that at present, the punishment for illegal reduction of holdings is still relatively broad, especially in some cases of shirking responsibility for the so-called lack of deep understanding of the provisions, which leads to low cost of violations and difficult to achieve deterrent effect.
Shen Meng suggested that for any illegal reduction, whether unintentional or intentional, we should increase the punishment and violation cost to prevent the recurrence of such acts.
