Study On XX City Commercial Bank’s Preferred Stock Issuing Plan And Its Influences

XX City Commercial Bank is the earliest local joint-stock commercial bank in upper reaches of Yangtze River and the southwest region and has developed rapidly in recent years. In November 2013, XX City Commercial Bank listed on HKEx and became the first mainland Chinese city commercial band that listed on HKEx. According to Basel Ⅲ, the China Banking Regulatory Commission issued rules for the capital of commercial Banks. It required Chinese commercial banks higher regulatory standards with Capital Adequacy Ratio and Core Tier 1 Capital Ratio. Although IPO brought capital to XX City Commercial Bank, facing the higher regulatory standards, how to create newly financial instruments in case to replenish capital is a tough problem to XX Bank.On November 30, 2013, China State Council issued The Guidance of pilot Preferred Stock. On March 21, 2014, China Securities Regulatory Commission issued rules for Pilot Preferred Stock. On April 18, 2014, China Securities Regulatory Commission and China Banking Regulatory Commission issued Guidance of Commercial Banks Develop Preferred Stock to Supplement Tier 1 Capital. These laws provided basis of reliable policy for the enforcement of preferred stock, especially for the preferred stock released by commercial banks in China.This paper analysed the Capital supplement tools of XX Commercial Bank. And combined the supervision indexes of Chinese banks, it did a research on the necessity and feasibility if XX City Commercial Bank issued preferred stock. With this, it designed a preferred stock issuing plan for XX Bank and analysed the influences of this plan.