Recently, a joint progress report for the twenty-seventh phase of A-share listing guidance for HUISHANG BANK was issued by its lead sponsors. This reporting period covered April to June 2026, with guidance activities conducted through a combination of on-site and remote methods. The intermediary teams concurrently supported routine guidance, regulatory clarifications, and the review of operational and equity-related matters.
The report disclosed that the fourth board of directors of HUISHANG BANK reached the end of its term in January 2022, and the renewal process has not yet been completed. The current board consists of 14 members, which is below the stipulated range of 15 to 19 members as per the company's articles of association. Furthermore, the tenure of some directors has exceeded three years. The guidance institutions indicated they would urge the company to advance the board renewal procedures.
Additionally, a long-standing legal dispute over equity exists between one of the bank's major shareholders, Zhongjing Xinhua Asset Management Co., Ltd., and Shanshan Holdings Co., Ltd. The subject of the dispute includes the domestic shares of HUISHANG BANK held by Zhongjing Xinhua, H-shares held by overseas entities, and equity related to Zhongjing Sihai Industrial. The two parties had previously signed an asset transfer agreement totaling 12.15 billion yuan, but subsequent disagreements over payments and completion led to litigation.
This dispute went through first-instance and second-instance trials, followed by a retrial review by the Supreme People's Court, which ultimately rejected Zhongjing Xinhua's application for a retrial. In November 2025, the Shanghai Financial Court resumed enforcement proceedings. By March 2026, the court ruled to dispose of 225 million domestic shares of HUISHANG BANK held by Zhongjing Xinhua. As of May 15, 2026, the court had initiated an appraisal of the corresponding equity, with judicial auction and share transfer procedures to follow according to due process. Under relevant listing regulations, this equity disposal may lead to changes among major shareholders, and related matters are still in progress.
The report also mentioned that some employees of HUISHANG BANK currently hold more than 500,000 shares individually, which does not comply with the relevant regulatory requirements. To address this, the company plans to negotiate with the affected employee shareholders to adjust individual holdings to within the 500,000-share limit through methods such as share transfers.
HUISHANG BANK is the first provincial-level regional joint-stock commercial bank in China established through the merger and reorganization of multiple city commercial banks and urban credit cooperatives. Headquartered in Hefei, Anhui province, it was registered in 1997. Following the integration of five city commercial banks and seven urban credit cooperatives within the province in 2005, it was officially named and established, commencing full external operations in 2006. The bank listed on the Hong Kong Stock Exchange in 2013 under the stock code 03698.HK.
After years of development, the bank's total assets exceed 2.3 trillion yuan, establishing it as a core local corporate bank in Anhui Province. Its main businesses encompass corporate banking, retail banking, and treasury and interbank operations. The bank initiated the A-share listing guidance and filing process in 2019.
The current guidance program is led by the joint sponsors, in collaboration with a law firm and an accounting firm. The guidance team continues to monitor the company's operations, equity matters, and corporate governance, while also organizing training for company personnel on securities, financial, and listing regulations, providing consultation and answers.