Founder Securities Co., Ltd. announced on October 30 that it has agreed to sell its entire stake of 300 million domestic shares in SHENGJING BANK for a total consideration of RMB 435 million. The transaction follows a general offer issued by Shenyang SHENGJING Financial Holding Investment Group Co., Ltd. to all shareholders of the bank.

Upon completion of the sale, Founder Securities will no longer hold any shares in SHENGJING BANK. The disposal is expected to reduce the company’s net profit attributable to shareholders by approximately RMB 449 million for the current fiscal year.

On the same day, Founder Securities released its third-quarter financial results, reporting revenue of RMB 9.082 billion for the first nine months of the year, up 67.17% year-on-year. Net profit surged 93.31% to RMB 3.799 billion, with Q3 net profit alone rising 130.46% to RMB 1.415 billion.

Founder Securities initially acquired the 300 million shares in SHENGJING BANK in December 2011, representing an 8.12% stake post-capital increase. At the time, the bank—the largest city commercial bank in Northeast China—was seen as a long-term investment due to its regional advantages and profitability.

SHENGJING BANK, formerly Shenyang City Commercial Bank, rebranded in 2007 and listed on the Hong Kong Stock Exchange in December 2014. It operates 18 branches and over 200 outlets across Northeast China, Beijing-Tianjin-Hebei, and the Yangtze River Delta region, with total assets reaching RMB 1.12 trillion by the end of 2024 (up 4% year-on-year).

The divestment aligns with SHENGJING BANK’s plan to delist from the Hong Kong market. On August 26, SHENGJING Financial Holding and the bank jointly announced a full cash offer to acquire all outstanding H-shares at HKD 1.32 per share (totaling HKD 2.967 billion) and domestic shares at RMB 1.20 per share (RMB 3.929 billion), with a combined outlay of approximately HKD 6.896 billion.

SHENGJING BANK cited two reasons for the delisting: 1. The offer provides shareholders an opportunity to realize their investments, given the bank’s underperformance—its stock fell 4.20% from 2025 to August 14, 2025, lagging behind the 30.05% rise in the Hang Seng Index and 28.39% gain in the Hang Seng Mainland Banks Index. 2. Delisting would optimize resource allocation, as low trading volumes have limited the bank’s ability to raise capital effectively in equity markets.

The bank noted that post-delisting, it could redirect resources from maintaining its listing status to business operations, leveraging regional strengths for high-quality development.

Financially, SHENGJING BANK has seen declining performance in recent years. Revenue dropped from a peak of RMB 21.002 billion in 2019 to RMB 8.577 billion in 2024, while net profit plummeted from RMB 7.58 billion in 2017 to RMB 621 million in 2024, down 15.21% year-on-year.

Industry experts suggest that the "state-backed acquisition + delisting" model could serve as a template for regional banks under financial strain, potentially accelerating sector consolidation among weaker, regionally dependent lenders.