"Second-in-command" all shares auctioned, Jiangxi's first private bank experiences another major equity change

Securities Times Reporter An Yi

Large-scale equity auctions of private banks reappear.

Information from the Judicial Auction Network Platform of the China Auction Industry Association shows that Jiangxi Bone Industry Group (hereinafter referred to as “Bone Industry”) will publicly auction 590 million shares of Jiangxi Yumin Bank in late April, with an starting price of nearly 530 million yuan.

According to the announcement, the equity held by Bone Industry has been split into two parts, involving 400 million shares and 190 million shares of Yumin Bank, with starting prices both set at 70% of the assessed value, totaling about 528 million yuan, with a price of less than 0.9 yuan per share.

All the above auctioned shares have been frozen by the First Court of Honggutan District, Nanchang City. Since the auctioned target is equity in a private bank and constitutes a large proportion, the announcement reminds bidders that they should have the qualification of a private bank shareholder.

Yumin Bank was approved to be established in May 2019 and opened in September of the same year. It was jointly initiated by Zhengbang Group, Bone Industry, and seven other private enterprises, making it Jiangxi’s first private bank and the 18th nationwide.

Since its opening, Yumin Bank’s registered capital has remained at 2 billion yuan. Originally, Zhengbang Group held 30% of the shares, making it the largest shareholder; Bone Industry holds 29.5%, as the second largest shareholder. In August 2024, Nanchang Jinkong was approved to acquire Zhengbang Group’s 30% stake in Yumin Bank, making it the first private bank to introduce a state-owned major shareholder, which attracted widespread market attention and discussion.

After Nanchang Jinkong’s involvement, several personnel adjustments occurred at Yumin Bank. Notably, Song Yuan, former vice president of Hunan Sannong Bank, joined Yumin Bank in early 2025, filling the vacancy of the bank’s president after more than three years; Huang Shuchuan, deputy general manager of Nanchang Chantuo and deputy secretary of the Yumin Bank Party Committee, was appointed secretary of the bank’s Party Committee in the second half of 2025.

The auction of Bone Industry’s entire shareholding indicates that Yumin Bank will again experience significant changes in its equity structure. It is understood that Bone Industry initially engaged in real estate development and diversified operations, currently involved in four major sectors: buses, enameled wire, real estate, and finance.

It is worth noting that Zhongheng Construction Group and Fada Holdings Group are also listed as persons subject to enforcement, holding 9.7% and 6% of Yumin Bank’s shares respectively.

As a new type of financial institution, private banks have been established since 2014. Due to the different backgrounds and paths of their shareholders, they have shown a continuously diverging operational state, with frequent changes in management and adjustments in shareholding structures.

Statistics show that several private banks, including Sichuan Xinwang Bank, Wuhan Zhongbang Bank, Shanghai Huazhu Bank, Wuxi Xishang Bank, Meizhou Keshang Bank, and Wenzhou Minshang Bank, have large shareholdings appearing on auction platforms.

A new trend emerging since 2024 is that many private banks are welcoming state-owned capital investments. Notably, Yumin Bank became the first private bank to introduce a state-owned major shareholder in August 2024. Additionally, in November 2024, three provincial and municipal state-owned enterprises were approved to acquire 30%, 11%, and 10% stakes in Anhui Xin’an Bank; in August 2025, Wuxi Guolian Group was approved to acquire 25% of Wuxi Xishang Bank held by Hongdou Group, becoming its largest shareholder.

In September 2024, a closed-door seminar titled “Opportunities and Challenges for Private Bank Development under the Background of Risk Prevention and Strong Regulation” was held in Meizhou, Guangdong, with representatives from 19 private banks attending. The meeting pointed out that private banks lack backing from national and government credit, and the “private” plus “small and medium-sized” nature makes public confidence relatively weak.

The seminar also noted that in recent years, some private bank shareholders have encountered operational issues, further lowering public trust and market recognition. Some shareholders’ equity has been pledged and auctioned, increasing internal governance pressures and affecting operational stability. Meanwhile, conflicts between industrial shareholders and bank management independence also exist, possibly due to mismatched responsibilities and rights, or financing needs, which pose risks of shareholder interference in bank operations.