"Even at a Steep Discount" No One Wants It? Another Billion-Yuan Bank Stock About to Be Auctioned, with Multiple Previous "Zero Transactions"

Recently, multiple large bank equity auctions have been repeatedly sold at a discount, yet no buyers have emerged.

According to China Securities Journal reporters on Alibaba Judicial Auction Platform, several equity stakes valued at over one billion yuan, including Jiujiang Bank and Guangdong Huaxing Bank, have recently been listed again. After multiple failed auctions, they have entered the liquidation process. Additionally, JD Asset Trading Platform reports that several more bank equity auctions worth over one billion yuan have been “newly listed,” including approximately 223 million shares of Guangfa Bank held by Jiangsu Sugang Group, which will be auctioned in early April with a starting price of 784 million yuan—this is the highest single bank equity auction amount listed this year.

In the face of a cold market for non-listed bank equity auctions, some entrusted parties are attempting to attract buyers with low-price promotions. Recently, China Securities Journal reporters noticed that Alibaba Judicial Auction Platform listed a stake of 100,000 shares of Beijing Rural Commercial Bank, with a starting price of only 188 yuan, while the bank’s latest net asset per share is as high as 83,700 yuan.

Large bank equity auctions remain without bids

Recently, China Securities Journal reporters observed that Jiangxi Baosheng Industrial Co., Ltd. (referred to as “Jiangxi Baosheng”) has publicly listed 23.652 million shares of domestic stock in Jiujiang Bank. Due to previous multiple failed auctions, it has now entered the liquidation process, with an estimated sale price of about 1.93 billion yuan, roughly 8.18 yuan per share. This is about four times the closing price of 1.85 HKD (approximately 1.63 RMB) per share on March 6.

In fact, in October last year, Jiangxi Baosheng’s holdings of this stake were publicly listed again. The first auction had a starting price of 241.8 million yuan but attracted no bids; the second round was reduced to 193 million yuan but still failed to find a buyer, ultimately resulting in a failed auction. As early as July to August 2021, several of Jiangxi Baosheng’s shares in Jiujiang Bank (with a total listing base price exceeding 100 million yuan) were forcibly auctioned by courts but did not succeed. During the second auction, the process was withdrawn.

Besides the auctioned shares of Jiujiang Bank, other holdings that have undergone multiple auctions include several shares of Guangdong Huaxing Bank held by Shanghai Shenglong Investment Group. In February, one of these holdings of 90 million shares was in the liquidation process but ended without bids, only to be listed again recently.

In fact, among judicially auctioned small and medium-sized banks, failed auctions are common. For example, in January this year, Zhongrong Xinda Group held about 416 million shares of Shanxi Bank, with a listing base price of 417 million yuan, which also failed to attract bids. In February, Tianjin Runsheng Plastic Products Co., Ltd. held 30.6 million shares of Langfang Bank, with a discounted price of 74.63 million yuan, but the auction still did not conclude during the second round.

On one side, many bank shares have been waiting long-term for buyers in the auction market; on the other, numerous newly listed bank shares are continuously supplied, creating a clear supply-demand imbalance.

China Securities Journal reporters noted that on March 2, JD Asset Trading Platform showed that Jiangsu Sugang Group’s 223 million shares of Guangfa Bank, with a starting price of 784 million yuan, were “newly listed.” This large asset will be auctioned starting April 2 this year. According to the valuation report, the total assessed value of these 223 million shares is 980 million yuan, or about 4.40 yuan per share. The court-set starting price, based on the valuation, was reduced to 784 million yuan, approximately 3.5 yuan per share, representing a 20% discount.

Another auction with a starting price exceeding 100 million yuan is 30 million shares of Jiangsu Haian Rural Commercial Bank held by a certain company, with a low starting price of 120 million yuan, about a 30% discount on the valuation.

“188 yuan for 10,000 shares” has become a promotional tactic

Similarly, due to low overall market transaction volume, some entrusted parties are trying to attract buyers with low-price promotions for bank equity auctions.

Recently, China Securities Journal reporters saw on Alibaba Asset Auction Platform that several stakes of Beijing Rural Commercial Bank are being or about to be auctioned. One of these, 100,000 shares, has a starting price of only 188 yuan. However, the deposit for this stake is 20,000 yuan, with a minimum increment of 2,000 yuan. An official involved explained that the 188 yuan starting price was set to attract participants, and the final transaction price would definitely be higher.

As of March 8, 21 people had registered for this stake, nearly 750 set reminders, and it attracted over 4,700 views. On March 5, another auction of 100,000 shares of Beijing Rural Commercial Bank with a starting price of 1,888 yuan was completed after 70 bids, closing at 388,800 yuan.

The auction notice shows that as of the end of September 2025, Beijing Rural Commercial Bank’s net asset value per share was 8.37 yuan. Compared to 2024, the value of the bank’s equity increased, with the end-of-year net asset per share at 7.49 yuan. Additionally, in June last year, the bank distributed a cash dividend of 0.14 yuan per share (tax included). Based on 100,000 shares, last year’s dividend alone would amount to 14,000 yuan before tax.

Liquidity issues for non-listed bank equities

For small and medium-sized banks frequently subject to auctions, the liquidity of non-listed bank equities in the auction market remains poor, making it difficult to complete transactions. Industry analysts point out that among the small and medium-sized bank equities forcibly auctioned on judicial platforms, what proportion actually sell? According to incomplete statistics from China Securities Journal, as of the end of 2025, there have been 2,700 bank equity auctions on Alibaba’s judicial platform, with only 650 resulting in successful transactions. The remaining 2,050 auctions ended without bids.

This means that over 75% of the listed bank equities on this platform in 2025 failed to sell, a significant increase compared to previous years. Geographically, the success rate varies, with more active markets in economically developed regions like the Pearl River Delta and Yangtze River Delta, while smaller banks in central, western, northern, and northeastern China see less activity.

According to data from the National Financial Regulatory Administration, by the end of 2025, China’s commercial banks’ net interest margin further narrowed to 1.42%, down 10 basis points from the end of Q4 2024. Non-performing loan ratios remained steady at 1.50%. Among different types of institutions, city commercial banks saw a relatively higher increase in non-performing loans, rising by 0.06 percentage points.

Facing operational risks, CTF Securities analyst Sun Binbin’s team previously pointed out that small and medium-sized banks primarily face risks related to internal control compliance and illegal operations, as well as risks associated with shareholders and actual controllers in their equity structures. Additionally, during economic recovery and the transition of new and old growth drivers, these banks face increased operational risks; meanwhile, in a low-interest-rate environment, narrowing interest margins reduce profitability, impacting capital adequacy and solvency.

“Short-term, the market for small and medium-sized bank equity auctions will continue to be sluggish, likely characterized by deeper discounts and declining transaction volumes,” said Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance. He believes that the “winter” of small and medium-sized bank equity auctions is a result of the risks accumulated from past extensive growth models. The key to breaking this deadlock is not waiting for market recovery but through substantial risk clearing, governance restructuring, and mechanism innovation to restore the investment value of small and medium-sized bank equities.

Editor: Zhan Shuheng