Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128.SH) announced on the evening of November 20 that its newly appointed President Lu Dingchang, along with five other senior executives, plans to collectively purchase no fewer than 550,000 A-shares of the bank over the next six months starting November 21, 2025. The move reflects their confidence in the bank’s intrinsic value, strategic plans, and long-term growth prospects.
Leading the buying spree is President Lu Dingchang, who assumed his role just a week earlier on November 13. At 39 years old, Lu is currently the youngest president among A-share listed banks. The bank also appointed Zhang Kangde and Ni Jianfeng as vice presidents on the same day.
This marks another wave of insider buying among A-share listed banks. Since October, at least seven banks, including Suzhou Rural Commercial Bank, Qingdao Bank, and Qilu Bank, have seen executives or major shareholders increase their stakes.
The banking sector has rebounded strongly in Q4 after a period of adjustment. Despite broader market declines, bank stocks have re-emerged as a "safe haven" for investors. The CSI Bank Index surged over 7% between October 9 and November 22, with major state-owned banks like ICBC, ABC, Bank of China, and CCB each surpassing a market cap of CNY 2 trillion by November 21.
Wu Zewei, a researcher at Suzhou Commercial Bank, attributed the rally to shifting market sentiment, improved liquidity, and expectations of better fundamentals. "Amid heightened volatility, investors are rebalancing toward stable sectors like banking," he noted.
**Details of the Share Purchases** President Lu plans to buy at least 200,000 shares, while Vice Presidents Zhang Kangde and Gan Qing will each acquire no fewer than 50,000 shares. Vice Presidents Cheng Pengfei and Ni Jianfeng aim to purchase at least 100,000 shares each, and Board Secretary Tang Zhifeng intends to buy 50,000 shares. All purchases will be funded with personal capital, with a six-month lock-up period.
Lu, a long-time insider at the bank, rose through the ranks from a microcredit officer to vice president in 2022. His 2024 compensation totaled CNY 1.56 million.
Additionally, the bank’s second-largest shareholder, Changshu Investment Holding Group, raised its stake by 0.17% to 3.98% between October 9 and November 13.
**Sector-Wide Insider Buying Trend** Other banks have also seen insider activity: - Shanghai Rural Commercial Bank (601826.SH) reported five executives, including President Wang Ming, bought over 250,000 shares between November 13–17, with a two-year lock-up. - Suzhou Rural Commercial Bank (603323.SH) announced three top executives, led by President Wang Liang, will invest at least CNY 1.8 million in shares over six months, locking holdings for three years. - Qilu Bank (601665.SH) disclosed directors and supervisors had completed 90% of a planned CNY 3.15 million share purchase.
**Fundamentals and Outlook** Huatai Securities research shows listed banks’ total assets grew 9.3% YoY in Q3 2025, with net profit up 1.5%. The sector’s net interest margin (NIM) stabilized at 1.42%, aided by lower deposit rates and optimized liabilities.
Wu expects NIM to bottom out in 2025, with gradual recovery hinging on economic recovery and asset quality. Analysts, including those at Changjiang Securities, predict continued valuation repair in 2026, citing banking stocks’ resilience as a "market stabilizer."
As fundamentals stabilize, the sector’s appeal to investors is likely to endure, particularly ahead of clearer seasonal trends.
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