What’s the point of working hard to earn money? Lu Dingchang, the newly appointed president of Jiangsu Changshu Rural Commercial Bank (601128), has given a straightforward answer—he has invested nearly all of his post-tax salary over the past two years into his company’s stock, and by the looks of it, he might even need to dip into his own savings to top it up.
On November 20, Jiangsu Changshu Rural Commercial Bank announced that six senior executives, including the newly appointed president Lu Dingchang, have initiated a voluntary share purchase plan. The plan, set to run for six months starting November 21, 2025, targets a collective purchase of no fewer than 550,000 shares.
Among this group, Lu’s commitment stands out. According to the announcement, he plans to purchase at least 200,000 shares, accounting for nearly 30% of the total planned purchases. Vice presidents Cheng Pengfei and Ni Jianfeng each intend to buy at least 100,000 shares, while Vice Presidents Zhang Kangde, Gan Qing, and Board Secretary Tang Zhifeng plan to purchase at least 50,000 shares each.
Notably, Lu currently holds 121,000 shares in Jiangsu Changshu Rural Commercial Bank, representing a 0.0036% stake.
Lu, who previously served as vice president of the bank, was recently nominated as its new president, making him the youngest candidate for such a position among A-listed banks. His appointment is pending approval from the Suzhou branch of the National Financial Regulatory Administration.
Before 2024, Lu held no shares in the bank. However, between January 8 and 12, 2024, he purchased 100,000 shares via centralized bidding at a cost of RMB 660,000, translating to an average price of RMB 6.596 per share. Following a capital reserve-to-share conversion, his holdings increased to 121,000 shares, maintaining a 0.0036% stake. Nearly a year later, as he prepares to officially assume the role of president, Lu has chosen to double down, planning to purchase at least another 200,000 shares over the next six months. Based on the bank’s closing price of RMB 7.13 per share on November 20, this additional purchase would cost approximately RMB 1.426 million.
A comparison between Lu’s salary and his share purchases highlights the significance of his investment.
Assuming Lu’s post-tax compensation in 2025 aligns with the RMB 1.84 million pre-tax salary of his predecessor Bao Jian in 2024, and considering his own pre-tax remuneration of RMB 1.556 million as vice president in 2024, his estimated post-tax income over two years would total around RMB 1.862 million.
In contrast, his share purchases in early 2024 cost RMB 660,000, and the planned 2025 purchase would require an additional RMB 1.426 million, bringing the total investment to over RMB 2.086 million.
This figure exceeds 112% of his two-year post-tax income, meaning Lu has effectively reinvested nearly all of his salary and may need to supplement with personal funds.
In terms of stock performance, Jiangsu Changshu Rural Commercial Bank’s shares hit a yearly high of RMB 7.84 on August 12, 2025. Since then, the stock has trended downward, and as of November 20, it closed at RMB 7.13, marking a 9% decline from its August peak. Against this backdrop of sustained adjustment, the management’s decision to initiate a share purchase plan underscores their confidence in the bank’s intrinsic value and long-term prospects.
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