Experts analyze that this acquisition clearly signals regulators' dual objectives of "actively resolving financial risks" and "strengthening the strategic role of state capital."

Bank mergers have entered a new phase: state-owned banks are now stepping in to acquire city commercial banks.

Recently, Jinzhou Bank announced on its official website that, with regulatory approval, ICBC will acquire and take over Jinzhou Bank's assets, liabilities, business, branches, and personnel. The two banks have signed an "Acquisition and Takeover Agreement" for the transfer.

This marks the first instance in recent years of a state-owned bank acquiring a city commercial bank. "Jinzhou Bank's legally compliant commercial banking operations and related assets and liabilities will be transferred to ICBC," the bank stated.

Since 2019, bank mergers initially involved city commercial banks, later extending to rural commercial banks and village banks. The core significance of this acquisition lies in providing a practical model for resolving regional financial risks through a "state-owned bank-led + market-driven takeover" approach.

According to Xue Hongyan, a special researcher at Jiangsu Merchant Bank, this move not only deepens and concludes ICBC's 2019 strategic investment in Jinzhou Bank as a rescue measure but also signifies the maturity of a "surgical" risk management model leveraging top-tier financial resources at the national level.

"By using state credit to safeguard depositors' interests, this effectively prevents risks from spreading to customers and related institutions, containing potential local financial turbulence within the controllable framework of a state-owned bank," Xue noted.

On October 27, 2025, Li Yunze, head of the National Financial Regulatory Administration, emphasized at the opening of the "2025 Financial Street Forum Annual Conference" that authorities will firmly prioritize risk prevention, adapt proactively to changes, and ensure systemic financial stability. Measures include consolidating risk resolution outcomes, advancing mergers and restructuring of small and medium-sized financial institutions, and enhancing non-performing asset disposal and capital replenishment.

**ICBC's Acquisition of Jinzhou Bank** On October 26, Jinzhou Bank announced that ICBC would take over its operations under regulatory approval. ICBC will continue providing banking services to Jinzhou Bank's customers in compliance with laws and regulations, ensuring depositors' rights remain unaffected.

The same day, Jinzhou Bank issued a "Business Migration Pre-Notice," stating that ICBC would migrate its operations to offer better services. The migration, involving IT system preparations, is expected to commence 15 business days after the notice, with details to follow. Post-migration, Jinzhou Bank's online and offline services will transition to ICBC's channels.

Jinzhou Bank reminded customers to prepare for the transition and stay vigilant against potential fraud during the migration period.

Established on January 22, 1997, Jinzhou Bank is headquartered in Liaoning Province and operates 15 branches across cities including Beijing, Tianjin, and Shenyang.

Originally listed, Jinzhou Bank delisted from the Hong Kong Stock Exchange in 2024 after Liaoning Financial Holding Group (a major shareholder) launched a voluntary cash offer to acquire all H-shares at HK$1.38 per share and domestic shares at RMB 1.25 per share. The total offer amounted to approximately HK$4.854 billion and RMB 3.146 billion.

On March 18, 2024, regulators approved Liaoning Financial Holding's acquisition of up to 6.034 billion shares (49.81% stake) in Jinzhou Bank. By April 15, 2024, Jinzhou Bank's H-shares were delisted.

Xue Hongyan highlighted that the acquisition reflects regulators' dual focus on proactive risk resolution and strategic state capital deployment. It balances market-driven solutions with financial stability while deepening state banks' role in regional economic development, particularly in key areas like Northeast China.

**Shifting Merger Trends** China's financial landscape is evolving. Over the past six years, mergers primarily involved joint-stock banks, city commercial banks, and rural commercial banks.

In June 2025, ICBC acquired Chongqing Bishan Gongyin Village Bank, marking its first involvement in rural financial institution reforms. The Jinzhou Bank acquisition is more significant as the first state-owned bank takeover of a city commercial bank, aligning with national financial strategies to strengthen large state banks and address risks in smaller institutions.

Xue noted that the deal will accelerate industry consolidation, with Jinzhou Bank's regional network complementing ICBC's expansion efforts. However, challenges remain in integrating operations, managing non-performing assets, and aligning corporate cultures.

This acquisition follows earlier reforms triggered by risks at Jinzhou Bank and Baoshang Bank in 2019. Jinzhou Bank faced liquidity issues due to governance problems, while Baoshang Bank collapsed under shareholder misconduct.

Since then, multiple city commercial banks have merged, including the formation of Sichuan Bank in 2020 and Shanxi Bank in 2021. Rural credit reforms have also progressed in provinces like Zhejiang, Jiangsu, and Liaoning.

Xue emphasized that while ICBC's acquisition sets a precedent, its long-term success hinges on effective integration, balancing standardization with regional adaptability, and resolving legacy risks—a critical step in China's financial risk management playbook.