Once regarded as the most suitable bidder, Huishang Bank (Huishang bank) issued a notice on the private issuance of domestic shares and signed the share subscription agreement on August 20, when both sides held their own opinions and violated each other’s contracts, and finally confronted the court, resulting in the freezing of both parties’ assets. According to the announcement, the board of directors of the bank passed a resolution on August 20 to issue no more than 1.559 billion domestic shares and 176 million domestic shares respectively to the deposit insurance fund and Anhui communications holding group, totaling nearly 9.9 billion yuan. Huishang bank plans to use all the net proceeds to supplement the bank’s core tier one capital. The announcement shows that the subscription price per share is 5.703 yuan, slightly lower than the bank’s net asset value of RMB 5.86 per share at the end of 2019, and a large premium over the recent trading price of HK $2.57 per share of H shares of the bank. < / P > < p > after the fixed increase of Huishang bank, the single largest shareholder of Huishang bank will be changed to deposit insurance fund, holding 11.22%; Shanghai Song Qingling foundation and its affiliated companies will hold 10.59%; at the same time, Anhui Energy Group Co., Ltd. will hold 9.7% and Anhui communications holding group will hold 5%. Anhui energy group and Anhui communications holding group are 100% holding subsidiaries of Anhui SASAC, that is to say, Anhui state-owned assets still holds 14.7% shares of Huishang bank. Huishang bank is a city commercial bank with trillions of assets. Founded in 1997, the bank is the first regional joint-stock commercial bank established by the joint reorganization of city commercial banks and urban credit cooperatives, with its headquarters in Hefei, Anhui Province. In 2013, the bank was listed on the main board of the Hong Kong stock exchange. By the end of June 2019, Shanghai Zhongjing (industrial) group (hereinafter referred to as Zhongjing group) was the largest shareholder of the bank, holding 1.977 billion domestic shares and H shares, with a combined shareholding ratio of 16.26%. < / P > < p > in recent years, the relationship between Zhongjing group and Huishang bank has continued to be tense. It is said that the reason is related to “return to a” and two fixed increase. Since then, the contradictions between the two sides have gradually become public. In particular, Huishang bank submitted a plan for issuing preferred shares in 2016, which was requested by Zhongjing group to stop. Previously, the dividend plan proposed by Zhongjing group was also rejected by the board of directors. These problems also affected the bank’s “back to a” process. In August last year, Zhongjing group announced that it would withdraw from Huishang bank and transfer all its shares to Shanshan holdings and its persons acting in concert. The price was 6.98 yuan per share and the transaction amount reached 12.1 billion yuan. Shanshan Group has a lot of experience in investment banks and is considered as the right person to take over the equity of Huishang bank. The outside world also thinks that the internal differences of Huishang bank are over, and the process of returning to a is expected to be accelerated. < p > < p > unexpectedly, in less than a year, this equity transaction of up to 10 billion yuan came to an abrupt end. Both sides held their own opinions and rejected the other party’s breach of contract, and went to court in July this year. As a result, both parties’ shares have been frozen. On June 30, this year, the board of directors of Huishang bank passed the resolution of the above-mentioned fixed increase plan. To some surprise, the bank introduced deposit fund shareholders with a central bank background. From the perspective of capital adequacy ratio, Huishang bank has a certain pressure of capital supplement. By the end of March 2020, the bank’s capital adequacy ratio was 13.22%, the core tier one capital adequacy ratio was 9.03%, and the tier one capital adequacy ratio was 10.96%. In comparison, it is lower than the overall level of the commercial banking industry. In 2019, Huishang bank has launched A-share listing. Wu Xuemin, chairman of the bank, said last year that it would strive to report the information to the CSRC as soon as possible. According to the 2019 general meeting of shareholders, the bank plans to submit an application for listing to the CSRC in the first half of 2021.