Recently, the Huzhou Financial Regulatory Bureau issued an approval, agreeing to Bank of Communications' acquisition of Zhejiang Anji Bank of Communications Rural Bank and the establishment of Bank of Communications Huzhou Anji Sub-branch, Bank of Communications Huzhou Anji Meixi Sub-branch, and Bank of Communications Huzhou Anji Tianhuangping Sub-branch. The announcement shows that Bank of Communications will take over the assets, liabilities, business, and employees of Zhejiang Anji Bank of Communications Rural Bank after its asset and liability verification. Zhejiang Anji Bank of Communications Rural Bank was established in 2010. According to Bank of Communications' 2025 interim report, as of the end of the first half of 2025, the registered capital of Zhejiang Anji Bank of Communications Rural Bank was 180 million yuan, with Bank of Communications holding a 51% stake.
As of the end of the first half of 2025, Bank of Communications also controlled three other rural banks: Dayi Bank of Communications Xingmin Rural Bank, Xinjiang Shihezi Bank of Communications Rural Bank, and Qingdao Laoshan Bank of Communications Rural Bank, with shareholding ratios of 97.29%, 51%, and 51% respectively. In August 2025, Bank of Communications received approval to acquire the 2.71% equity stake in Dayi Bank of Communications Xingmin Rural Bank held by eight corporate entities. Following this acquisition, Bank of Communications holds a total of 100% equity in Dayi Bank of Communications Xingmin Rural Bank. Simultaneously, Bank of Communications was approved to acquire Dayi Bank of Communications Xingmin Rural Bank and establish Bank of Communications Chengdu Dayi Sub-branch and Chengdu Dayi Anren Sub-branch.
In September 2025, the Qingdao Financial Regulatory Bureau approved Bank of Communications' acquisition of Qingdao Laoshan Bank of Communications Rural Bank and the establishment of Bank of Communications Qingdao Guojin Center Sub-branch, Wanggezhuang Sub-branch, Beizhai Sub-branch, Shazikou Sub-branch, and Jinjialing Sub-branch. Subsequently, Qingdao Laoshan Bank of Communications Rural Bank was approved for dissolution. Currently, among the four rural banks controlled by Bank of Communications, Xinjiang Shihezi Bank of Communications Rural Bank has not yet disclosed any related acquisition and restructuring plans.
In 2025, while the pace of mergers and reorganizations of rural banks accelerated, major state-owned banks actively participated in the restructuring of rural banks. In June 2025, the Jiangjin Financial Regulatory Bureau approved ICBC's acquisition of Chongqing Bishan ICBC Rural Bank and its conversion into an ICBC Bishan Sub-branch. This marked the first participation of a major state-owned bank in a "village-to-branch" conversion; previously, such mergers and reorganizations of rural banks were mostly undertaken by joint-stock banks, city commercial banks, rural commercial banks, and other financial institutions.
A research report from Tianfeng Securities indicates that acquisitions of rural banks by major state-owned banks are a crucial tool for reform and risk mitigation. ICBC's move broke the precedent for major state-owned banks' participation in "village-to-branch" conversions and demonstrated their role in responding to regulatory requirements and acting as a "ballast stone" in risk disposal. Following ICBC's entry into the "village-to-branch" arena, Bank of Communications and Agricultural Bank of China have also become participants in the integration and reorganization of rural banks.
To date, there have been more than ten cases of "village-to-branch" conversions by major state-owned banks. ICBC, Bank of Communications, and Agricultural Bank of China have received approval to acquire 1, 3, and 6 rural banks respectively and establish branch offices.
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