The Feasibility Study Of The Listing Of The Hefei Science & Technology Rural Commercial Bank

Rural Commercial Bank is a endemic financial institution based on the Rural Credit Cooperatives.It is a endemic commercial bank which support the development of small and micro businesses and issues concerning agriculture,countryside and farmers,serving endemic regional economy.It is not only the backbone power of rural financial institution,but also an important part of the banking of our country;it has made an outstanding contribution to local economic construction,the development of small and medium sized enterprises and the urban and rural residents services In December,2010,Chongqing Rural Commercial Bank listed on the Stock Exchange of Hong Kong Ltd.,it is regarded as the fourth echelon of banking of China,the rural commercial bank officially raised the curtain of listing,after the centralized listing of large state-owned banks,shareholding system commercial bank and urban commercial bank in numbers.The listing of rural commercial banks has many advantages,it can make complement for capital constantly,promote the transition of reform and improve the popularity and so on.However,the rural commercial bank is based on Rural Credit Cooperatives and it is the system-changing of it.There is a ubiquity of issues left over from history such as the chaos of equity management,lots of shareholders and the ratio of non-performing asset is high and so on.Not all the rural commercial banks is fit for the way of listing.As the province which has the first rural commercial bank which was comprehensively reformed from rural cooperative institution in our country,there are no rural commercial banks listing successfully yet in Anhui Province.After the fast development of more than ten years,Hefei Science&Technology Rural Commercial Bank has become a rural commercial bank which has reached certain scale,regulate operating management and a promising future of development in Anhui Province.So we choose Hefei Science&Technology Rural Commercial Bank as an object of study and analyses the possibility of whether it can list or not.Above all this paper makes an introduction of the fundamental state of the Hefei Science&Technology Rural Commercial Bank,including the current situation,achievements and the listing plan and so on,in the same time we make an analysis of the necessity of the listing of Hefei Science&Technology Rural Commercial Bank.Then make a summary of the essential conditions which a rural commercial bank should have for listing.First of all,according to the《IPO and listing management approach》,make an analysis of the basic standard that the China Banking Regulatory Commission demand for the listing of enterprises from the aspects of capacity as a subject,standardized operation,finance and accounting,the independence of the company and the use of raised money and so on;Secondly,owing to the particularity of rural commercial banks,it is still need to conform to the CSRC for rural commercial bank listed special provisions and need to meet the basic standards of CBRC on rural commercial banks in the capital status,liquidity risk,profitability,provision,credit risk and other aspects.Followed by analyzing the feasibility of a rural commercial technology bank in Hefei to listed in market,first,from the macroeconomic and financial environment,the company’s industry and the company’s competitive situation to analyze the listing environment of Hefei science and technology rural commercial banks will face;Second,from the corporate governance,corporate finance,ownership structure,asset size and business comprehensiveness,risk control core indicators and other five aspects of the specific situation of Hefei Science and Technology Rural Commercial Bank issued audit criteria,and doing transverse comparison with the rural commercial bank that has been listed,combined with other factors affecting the listing of Hefei science and technology rural commercial bank,to judge Hefei technology rural commercial bank has a favorable market environment,and it has been the initial listing conditions,but there are still the following problems.First of all the asset size is not big enough,the quality of the asset still need to improve;Secondly,concentration ration of the loan is too high and there are amounts of regional risks;Thirdly,the income structure is not reasonable,the ability of sustainability of profit still need to be improved;Fourthly,the ownership structure is not completed yet,the problem of independence remains to be solved.In conclusion,to accelerate the listing of the Hefei Science&Technology Rural Commercial Bank,in this we think it should improve in four aspects below:First of all,optimized the asset structure,improve the quality of asset and reduce the ratio of non-performing asset as soon as possible;Secondly,the concentration ratio of loan should be reduced,the structure of credit assets should be optimized,then achieve operating cross the district;Thirdly,optimize the structure of operating receipt and enhance the sustainability of profitability based on serving the small and micro businesses and issues concerning agriculture,countryside and farmers.Fourthly,optimize the stock right structure,improve the system of power balance,strengthen the independence of rural commercial bank.