Newly appointed president Wang Liang of Jiangsu Suzhou Rural Commercial Bank (603323.SH) faces challenges in uniting shareholders less than a month into his tenure.
The bank recently disclosed resolutions from its second interim shareholders’ meeting in 2025, approving the election of Wang Liang and Xia Lijun as executive directors of the seventh board. Additionally, a proposal to issue RMB 500 million in sci-tech innovation bonds was passed.
Notably, 13.9743% of shareholders voted against the bond issuance plan, with small shareholders (holding under 5% stakes) casting 65.79 million opposing votes (19.7953% of their total). This marks another instance of significant dissent among minority shareholders, following an 11% opposition vote against the bank’s 2023 profit distribution plan in May 2024.
Wang Liang, appointed in early November, confronts headwinds as the bank reported near-stagnant revenue growth (RMB 3.221 billion, up 0.08% YoY) and a dip in capital adequacy ratio (12.88% as of September 2025, down from 13.08% at end-2024). Despite announcing an RMB 800,000 personal share buyback alongside two new vice presidents’ combined pledge to purchase RMB 1.8 million in shares, the move may struggle to restore confidence amid operational pressures.
**Shareholder Divisions Highlighted** The bond issuance proposal secured 85.69% approval but faced 14% opposition, including 19.8% resistance from sub-5% stakeholders. The bank’s top two shareholders—Hengtong Group (6.81%) and Jiangsu New Hengtong Investment Group (6.73%)—backed the plan, which ultimately cleared the two-thirds threshold for passage.
Meanwhile, amendments to the bank’s related-party transaction rules saw 14.86% opposition, while director appointments faced minimal pushback (~1.35%).
**Performance Headwinds** Q1-Q3 2025 net interest income fell 3.84% to RMB 2.058 billion, though a 30.5% surge in investment income (RMB 1.116 billion) and a 61.23% reduction in credit impairment losses provided some relief. The NPL ratio held at 0.9%, but provision coverage dropped 73.11 percentage points to 355.85%.
Wang, previously with China CITIC Bank and the lender’s predecessor, now leads a younger management team tasked with reviving growth. However, with tepid revenue expansion and capital erosion, their RMB 1.8 million buyback signal may prove insufficient. Regulatory approval for the new executives remains pending.
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