Research On Listing Of China’s City Commercial Banks

City commercial banks were born in a special historical background. They were fruits of the reform and opening up of China’s financial system. Local governments, city businesses and residents’participation helped form local joint-stock commercial banks on the basis of urban credit cooperatives. City commercial banks are playing important roles in China’s multi-level banking system. They are representatives of the small forces of domestic banking sector, helping break the monopoly of big banks and defusing the local financial risks. City commercial banks have played positive roles in supporting local economic development. Their social status as well as financial ones have being found and enhanced.Bank of Nanjing, Bank of Ningbo and Bank of Beijing were listed on the Shanghai and Shenzhen Stock Exchange in2007, which had attracted unprecedented attention to the city commercial banks. Many believe that the curtain that city commercial bank IPOs as "tier four" of China’s banking industry has been pulled up. The latest data shows that there have been9city commercial banks submitting IPO applications to China Securities Regulatory Commission (CSRC). According to incomplete statistics,16more city commercial banks including Hankou Bank、Wenzhou Bank、Nanchang Bank also make IPO plan public. City commercial banks are keen on IPOs, but not all of them are suitable. In fact, most of the city commercial banks are still facing problems such as capital adequacy constraints, geographical restrictions and the high rate of non-performing loans, etc. In the next period, the development of city commercial banks will continue to show the trend of diversification, owing to different environment and strength. Stronger city commercial banks in relatively developed regions are likely to achieve greater development through IPOs, introduction of strategic investors, M&As and other opportunities.Most of the other city commercial banks would have to choose to become local-based community banks, or banks with market characteristics. Others with poor management will choose to quit.Therefore, the analysis of the city commercial banks’regionality and diversity points out the new trend and difficulties in the development, elaborating on the development path of city commercial bank, pointing out that IPOs have been the effective way of top city commercial banks. Then I talk about3listed city commercial banks’positive effects. After deep analysis of the case bank’s external environment and internal strength, I points out the necessity and feasibility of listing, in compliance with the listing requirements of the premise, and research on marketing strategy. I analyze the advantages, disadvantages, opportunities and threats of the case bank after listing analysis, pointing out the implementation of listing strategy, which has significant meaning on other city commercial bank preparing for listing, and also provides new ideas for other non-listed city commercial banks. Based on the operating status of the city commercial banks as the starting point, in order to optimize the way of development of listed city commercial banks as the destination, this paper uses case studies of various research methods, comprehensive use of comparative analysis, quantitative analysis and qualitative analysis.The first chapter points out the significance of the topic, making clear research methods, structure, innovation and inadequacies from the practical point of view clarifying the research background, summarizing and listing the dynamical study of city commercial banks at home and abroad to carry out research for the next step to do good for relevant theoretical preparation. The second chapter discusses the connotation of China’s city commercial banks, development status and reality predicament. It mainly elaborates the meaning of city commercial banks, operating characteristics, development status, presenting difficulties in China’s banking system and roles. Chapter three chooses the3IPO city commercial banks as examples, discusses what positive effects and significant meaning IPOs brought to them. Chapter four takes Bank of Hz as a case, pointing out its development status and the reality dilemma deeply, trying to prove that IPO is the best way to solve the existing problems. Chapter five sorts out the policy evolution and orientation of regulatory authorities in recent years, combining the case of Hz Bank’s own operating conditions, analyzing the pathways and specific strategies. Chapter six uses SWOT analysis method, analyzes the strengths, weaknesses, opportunities and challenges of city commercial banks after IPO, exploring how to get better development, and putting forward to specific proposals for the problems faced. It makes a brief summary of the studies in this paper, and points out the reference case analysis of the Hz Bank listing.