After more than three years without new bank IPOs in the A-share market, it has now entered a &#34;challenging moment.&#34;
On July 4, the Shenzhen Stock Exchange announced that due to Shunde Rural Commercial Bank and its sponsor withdrawing the application for issuance and listing, it has decided to terminate the review of Shunde Rural Commercial Bank's initial public offering of stocks and listing on the main board according to relevant regulations.
This is not the first bank to withdraw its application this year.
In early 2025, Guangzhou Bank also withdrew its listing application documents. As of now, only 5 banks remain in line for IPO applications in the A-share market.
On one hand, the road to listing for bank stocks is fraught with challenges, with institutions frequently withdrawing their subscriptions; on the other hand, small and medium-sized banks continue to wait for new opportunities to replenish capital.
This really feels like a &#34;tale of two cities.&#34;
<h2>Withdrawing After 6 Years of Waiting</h2>
Since first submitting its IPO application in 2019, Shunde Rural Commercial Bank has been in line for nearly 6 years in the &#34;IPO&#34; queue.
According to media reports, the reason for the bank's withdrawal of the IPO application is &#34;strategic planning adjustments.&#34;
However, the more practical challenge may lie in its performance, as the 2024 annual report indicates that Shunde Rural Commercial Bank is facing the challenge of increasing revenue without increasing profit.
Data shows that in 2024, the bank's operating income was 8.49 billion yuan, barely up 1.24% year-on-year; however, the net profit attributable to the parent company was 3.174 billion yuan, down 8.26% year-on-year.
In addition, the asset quality of Shunde Rural Commercial Bank is also under pressure. By the end of 2024, the bank's non-performing loan balance reached 4.049 billion yuan, an increase of 474 million yuan from the end of the previous year, with a non-performing loan ratio of 1.61%, slightly up 0.13 percentage points from the end of the previous year.
Moreover, aside from this voluntary withdrawal, Shunde Rural Commercial Bank has also experienced multiple instances of review suspension due to expired financial documents.
It must be said that the team at Shunde Rural Commercial Bank had already worked very hard before this withdrawal.
<h2>5 Banks Still &#34;Persisting&#34; in the Queue</h2>
After Shunde Rural Commercial Bank's withdrawal, only 5 banks remain in line for IPOs in the A-share market.
Among them, only Huzhou Bank has entered the substantive review stage, while the other four banks are still in the &#34;accepted&#34; review status.
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However, there have been some positive signals recently.
On June 30, the official website of the Shenzhen Stock Exchange showed that Dongguan Bank and Nanhai Rural Commercial Bank have updated and submitted relevant financial documents, and their IPO review status has been restored from &#34;suspended&#34; to &#34;accepted.&#34;
This indicates that listing remains a major goal for many banks, and there is still motivation at the banking level to continue preparing for IPOs.
In recent years, the IPO process for small and medium-sized banks in the A-share market has been significantly hindered, with the last bank to list in the A-share market being Lanzhou Bank, which went public in January 2022
During the sprint to IPO, several banks actively withdrew their applications, including Xiamen Rural Commercial Bank, Jiangsu Hai'an Rural Commercial Bank, Bozhou Yaodu Rural Commercial Bank, Ma'anshan Rural Commercial Bank, and Guangzhou Bank.
<h2>Active Guidance for Filing for 15 Years</h2>
Despite the uncertainties surrounding the listing of bank stocks, the enthusiasm for listing among small and medium-sized banks remains unabated. Many banks have expressed their expectation to supplement capital through IPOs.
According to information from the official website of the China Securities Regulatory Commission, at least 15 banks are currently in the stage of listing guidance and filing. Although they have generally &#34;struggled for many years,&#34; this has not affected these banks' determination to go public.
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Among them, Hankou Bank has the earliest filing time, having been in the guidance and filing stage for nearly 10 years, and has now released its 59th guidance report. The latest report indicates that Hankou Bank's capital adequacy indicators still need improvement and require multi-channel capital supplementation.
In addition, this year, more banks are joining the ranks of A-share listing guidance.
In May of this year, Xinjiang Bank released a tender document for listing financial advisory services, which also indicates that the bank has begun preparations for listing guidance.
<h2>Challenges Facing Bank A-Share IPOs</h2>
Behind the enthusiasm for listing, the path to A-share IPOs for small and medium-sized banks is not smooth.
After the comprehensive registration system reform, regulatory requirements for the performance stability of companies listed on the main board have become stricter. Against the backdrop of a continuous narrowing of banks' net interest margins and pressure on performance, small and medium-sized banks face significant challenges in going public.
Recently, Nanhai Commercial Bank, which had its IPO review status restored to &#34;accepted,&#34; is currently experiencing a decline in revenue. In 2024, it achieved operating revenue of 6.429 billion yuan, a year-on-year decrease of 6.30%, and a net profit of 2.453 billion yuan, a year-on-year increase of 2.99%. However, this acceptance may indicate that the bank has the opportunity to perform in future annual reports.
On the other hand, Guangzhou Bank, which previously voluntarily withdrew its application, has seen a decline in both revenue and net profit for two consecutive years. From 2022 to 2024, Guangzhou Bank's operating revenue was 17.153 billion yuan, 16.003 billion yuan, and 13.785 billion yuan, respectively; the net profit attributable to the parent company was 3.339 billion yuan, 3.017 billion yuan, and 1.012 billion yuan, respectively.
In the context of widespread obstacles to A-share listings, the Hong Kong stock market seems to have become a choice for some banks. Earlier this year, Yibin Bank successfully listed on the main board of the Hong Kong Stock Exchange, becoming the first bank to land on the Hong Kong stock market in nearly three years. However, small and medium-sized banks listed in Hong Kong also generally face challenges of low valuations and low trading volumes.
The solution lies in the banks' own &#34;hands.&#34;
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The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk

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The A-share IPO market for banks is facing challenges, with Shunde Rural Commercial Bank and Guangzhou Bank successively withdrawing their listing applications, leaving only 5 banks in the queue. The reason for Shunde Rural Commercial Bank's withdrawal is a strategic planning adjustment, facing performance pressure of increasing revenue without increasing profit and an increase in non-performing loans. Nevertheless, some banks are actively updating their financial information, hoping for progress in the IPO review

Behind the retreat of bank IPOs: two consecutive withdrawals, five companies waiting in agony, and fifteen companies rushing for guidance