Wang Yanxing is a senior researcher at the Chongyang Institute of Finance, Renmin University of China. This article is reproduced from the Rural Financial Times on November 7.

Wang Yanxing is a senior researcher at the Chongyang Institute of Finance, Renmin University of China. This article is reproduced from the Rural Financial Times on November 7.

Recently, Dongguan Rural Commercial Bank issued an announcement stating that in order to implement the overall plan for Guangdong Province to deepen the reform of rural cooperative finance , Dongguan Rural Commercial Bank plans to participate in the use of the Guangdong Provincial Government to support the development of special bond to supplement Puning Rural Commercial Bank's capital, and will sign a cooperation framework agreement and related agreement with Guangdong Finance Holdings for specific arrangements, and acquire the target beneficiary rights and target shares from Guangdong Finance Holdings.

Relevant experts believe that this time, the investment in Rural Commercial Bank through a large state-owned financial holding company has a very good taste of "interbank assistance".

Senior researcher at the Chongyang Institute of Finance of Renmin University of China and former deputy secretary-general of the China Banking Association said in an interview with the reporter of " Rural Financial Times " that the use of financial bonds issued by local governments can reflect and highlight the main role of local governments in helping rural commercial banks, greatly improving the effectiveness of assistance. At the same time, it reduces the current capital occupation of Dongguan Rural Commercial Bank, allowing Dongguan Rural Commercial Bank to go lightly, maximize its experience and professional advantages in business management, and reduce the risk of assistance.

day eye check data shows that Dongguan Rural Commercial Bank has registered capital of nearly 6.889 billion yuan, most of which are paid-in capital; Puning Rural Commercial Bank has registered capital of more than 689 million yuan.

At present, the shareholder structure of Puning Rural Commercial Bank is: legal person shares (18 households) holding ratio is approximately: 56.06%, non-employee natural person shares (3082 households), and employee shares (836 households).

Dongguan Rural Commercial Bank ranks first in all business operations in the Guangdong Rural Credit System; Guangdong Finance Holdings is a large state-owned financial holding enterprise managed by the Guangdong State-owned Assets Supervision and Administration Commission. It mainly operates state-owned assets, engages in capital operation and management, asset entrusted management, and investment projects.

Wang Yanxing believes that Dongguan Rural Commercial Bank plans to jointly participate in the use of local government special bonds to supplement the capital of small and medium-sized banks with Guangdong Finance Holdings. This is an exploration of innovating local government special bonds. Most of the previous special bond projects of small and medium-sized banks were participated by provincial-level financial holding groups, which also means that Guangdong's rural credit reform has begun a new attempt.

At the beginning of this year, Dongguan Rural Commercial Bank issued an announcement stating that the management rights of the bank and Guangdong Puning Rural Commercial Bank were transferred from the Guangdong Provincial Cooperative to the Dongguan Municipal Government, and the Dongguan Municipal Government entrusted Dongguan Rural Commercial Bank to assist in the management of Puning Rural Commercial Bank, assist in the daily governance and operation management of Guangdong Puning Rural Commercial Bank, and guided and urged Guangdong Puning Rural Commercial Bank to continuously improve the corporate governance mechanism and promote its sustainable and good development.

In May this year, the Guangdong Banking and Insurance Regulatory Bureau issued the "Approval on the Targeted Offering Plan of Guangdong Puning Rural Commercial Bank Co., Ltd. and the Relevant Shareholder Qualifications", agreeing to the bank to target raising 358.3 million shares; agreeing to the bank to target hike 358.3 million shares; and agreeing to the bank to use local government special bond funds to subscribe to 312 million shares of the bank, accounting for 29.81% of the bank's total share capital after this issuance; it requires the bank to strengthen equity management, optimize the equity structure, strictly control shareholder related transactions, improve corporate governance and internal control mechanisms, and prevent and resolve risks.

It is understood that Yuecai Holdings will use special bond funds to subscribe for 312 million new shares issued by Puning Rural Commercial Bank for 312 million yuan and purchase 3.388 billion yuan of property trust beneficiary rights formed by Puning Rural Commercial Bank for 3.388 billion yuan. The target shares account for approximately 29.81% of the total share capital after the additional issuance of Puning Rural Commercial Bank. After

subscribes to the target shares and the target beneficiary rights, Yuecai Holdings will use the proceeds from the collection and disposal of the credit assets of the target shares previously transferred to Dongguan Rural Commercial Bank, the proceeds from the transfer of the target shares and the target beneficiary rights and other sources of funds to repay the principal and interest of the special bond.

It is expected that Dongguan Rural Commercial Bank will become the largest shareholder of Puning Rural Commercial Bank after acquiring relevant shares. In the future, Dongguan Rural Commercial Bank will export business strategies, management concepts, and talent teams, bringing changes to the operation and management of Puning Rural Commercial Bank.

Wang Yanxing said that Dongguan Rural Commercial Bank should assist Puning Rural Commercial Bank to improve its governance system, transform its operating mechanism, better serve local economic development, assist in the daily governance and operation management of Puning Rural Commercial Bank, and guide and urge Puning Rural Commercial Bank to continuously improve its corporate governance mechanism and promote its sustainable, good and healthy development. It is expected that Puning Rural Commercial Bank's property rights system, organizational form, corporate governance, business management, risk management, internal control, etc. will reach a new level.

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