"Second-in-command" all shares auctioned off: Jiangxi's first private bank experiences another major equity change

Securities Times reporter An Yi

A large-scale equity auction of private banks has resurfaced.

According to information on the judicial auction network platform of the China Auction Industry Association, a 590 million share stake in Jiangxi Yumin Bank held by Jiangxi Boneng Industrial Group (referred to as “Boneng Industrial”) will be publicly auctioned on the platform in late April, with a reserve price of nearly 5.3 billion yuan.

Per the announcement, the stake held by Boneng Industrial has been split into two lots, involving 400 million shares and 190 million shares of Yumin Bank, respectively. The reserve prices for both lots are 70% of the appraisal value. In total, they amount to about 528 million yuan, equivalent to a price per share of less than 0.9 yuan.

All the auctioned stakes above have been frozen in first priority by the People’s Court of Honggutan District, Nanchang City. Since the auction target is equity in a private bank and the stake represents a relatively large proportion, the announcement indicates that bidders should have the qualifications of a private bank shareholder entity.

Yumin Bank was approved to筹建 in May 2019, opened in September of the same year, and was jointly established by nine private enterprises including the Zhengbang Group and Boneng Industrial. It is the first private bank in Jiangxi and the 18th nationwide.

Since opening, Yumin Bank’s registered capital has remained unchanged at 2 billion yuan. Among them, the Zhengbang Group originally held 30% equity in the bank, making it the largest shareholder; Boneng Industrial held 29.5%, making it the second-largest shareholder. In August 2024, Nanchang Jin控 was approved to take over the 30% stake in Yumin Bank held by the Zhengbang Group. The bank then became the first private bank to introduce a large state-owned capital shareholder, drawing widespread attention and discussion in the market.

After Nanchang Jin控 took control, Yumin Bank saw multiple personnel changes. In early 2025, Song Yuan, former deputy president of Hunan Sansiang Bank, joined Yumin Bank, filling the three-plus-year vacancy in the president position; in the second half of 2025, Huang Shuchuan, deputy general manager of Nanchang Chengtou and deputy Party secretary of Yumin Bank, was appointed Party secretary of the bank’s Party committee.

With Boneng Industrial facing another auction of all its holdings, it means that Yumin Bank will again experience a large equity change. It is understood that in the early stages of Boneng Industrial’s business, it mainly engaged in diversified operations such as real estate development, and currently it involves four major segments: passenger buses, enameled wire, real estate, and finance.

It is worth noting that Zhongheng Construction Group and Fada Holding Group are also currently listed as judgment debtors. The two companies hold 9.7% and 6% equity in Yumin Bank, respectively.

As a new type of financial institution, since private banks were established in succession starting in 2014, based on the backgrounds and path choices of shareholders with different strengths, they have also shown a pattern of sustained divergence in their operations. Changes in management and adjustments to equity structures occur from time to time.

According to statistics, including Sichuan Xinxin Bank, Wuhan Zhongbang Bank, Shanghai Huarui Bank, Wuxi Xishang Bank, Meizhou Keshang Bank, Wenzhou Minshang Bank, and others, many private banks have had large equity stakes appear on auction platforms.

The new trend that emerged since 2024 is that several private banks have welcomed state-owned capital to take equity. Specifically, Yumin Bank became the first private bank to introduce a state-owned capital large shareholder in August of that year. In addition, in November 2024, three provincial- and municipal-level state-owned enterprises were respectively approved to take over 30%, 11%, and 10% equity stakes in Anhui Xinan Bank. In August 2025, Wuxi Guolian Group was approved to take over the 25% equity stake in Wuxi Xishang Bank held by Red Bean Group, becoming the bank’s largest shareholder.

In September 2024, a closed-door forum titled “Opportunities and Challenges for the Development of Private Banks under the Background of Risk Prevention and Stronger Regulation” was held in Meizhou, Guangdong. All 19 private banks sent representatives to attend. The meeting believed that private banks have no government credit endorsement; the “private” nature combined with the “small and medium-sized” designation means public confidence in them is relatively weak.

The above forum also pointed out that in recent years, problems have arisen in the business operations of some private bank shareholders themselves, further lowering the credibility and market recognition of private banks. For some shareholders, their equity has been pledged and auctioned, which increases internal governance pressure on private banks and affects the stability of operations. At the same time, there is also a certain contradiction between the independence of industrial shareholders and the bank’s operation and management, and risks may arise that shareholders interfere with bank operations, possibly due to factors such as mismatched rights and responsibilities and financing needs.

(Editor: Wen Jing)

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