Of more concern is that once the H shares are listed and the stock price rises, Minsheng Bank A shares will also be able to start a wave of linked market activity. Similarly, China Taiping (601601, Stock Bar) this time the scale of H share financing will not exceed 1 billion shares, with a minimum issue price of 23.52 yuan per share, which is also lower than the current A share closing price of 25.9 yuan. The hosting of the Financial Expo will play a role in promoting the construction of Nanjing's financial center. The Nanjing municipal government aims to attract 100 financial enterprises to settle in Hexi within 3-5 years, and have 10,000 high-end financial talents working in Nanjing.
Launched on November 28th, the Financial Expo will introduce a special financial service event open to citizens. It will include topics such as family finance management, funds, insurance, gold, antiques, calligraphy and paintings, financial products analysis, real estate, etc.
In recent years, Nanjing's financial industry has made great progress. In 2008, the output value of the financial industry reached 30 billion yuan RMB, accounting for 8% of the city's total GDP, 16% of the tertiary industry services, and one quarter of Jiangsu Province. Nanjing's financial industry ranks only behind Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou, currently ranking seventh nationwide. By 2012, the scale of Nanjing's financial industry will reach 60 billion yuan, and by 2015 it will reach 100 billion yuan.
Nanjing's financial industry will double in size in three years. According to Cha Binyi, deputy director of the Jiangsu Provincial Financial Office and spokesperson, since its first launch in 2007, the Financial Expo has already gained significant influence domestically. The second Financial Expo will focus on the theme of "investment, financing, wealth management, financial services, finance and life."
International Monetary Fund Chairman Dominique Strauss-Kahn stated at the annual meeting of the British Industrial Alliance on the 23rd that the disclosed bank bad debt estimates are less than half of the actual bad debt totals. American banks have acknowledged an estimated 60% of bank bad debts, while Eurozone and British banks have only disclosed 40%.
The development of financial support for forestry faces four constraints. Currently, forest insurance in the entire city is still in its infancy, with a single variety of forest insurance, no other types established except fire insurance. When natural disasters such as freezing or pestilence occur, or when there is human theft, the value of collateral is difficult to guarantee.
Firstly, Article 3 and Article 10 of the "Trial Measures for the Administration of Forest Rights Mortgage Loans in Sichuan Province" impose relatively strict restrictions on the use of forest rights mortgage loans, which do not meet current demands. At the same time, the "Measures" restrict the use of forest rights mortgage loans to forestry and agriculture-related production and operation, limiting the development of forest rights mortgage loans.
Secondly, the valuation of forest rights is exaggerated, far exceeding the acquisition price of forest rights. The key method used for forest rights asset evaluation is the "present value of harvest method", and the usage right evaluation adopts the "annuity capitalization method". Financial departments lack professional forest rights value evaluators, so they cannot raise any objections to the authenticity of the evaluation, and can only heavily discount the results from intermediary department evaluations.
Thirdly, the supervision and disposal of forest rights are quite challenging. The disposal and liquidation of collateral are relatively difficult. The current transfer mechanism is not well-established, and there is no forest rights transfer market yet. Once borrowers are unable to repay loans on time, banks will face difficulties in disposing of the collateral.
Fourthly, mechanisms for risk diversification and transfer have not been established yet. Illegal logging and forest fires are significant potential risks for forest rights mortgage loans. Once forestry production encounters natural disasters after the issuance of forest rights mortgage loans, not only will forest companies and farmers suffer economic losses, but it will also affect the repayment of bank loans.
The second National (Nanjing) Financial Expo will be held from November 27th to 28th at the Nanjing International Expo Center. At that time, Professor Hong Yinxing, Party Secretary of Nanjing University, and Mr. Shui Pi, Chief Editor of the Huaxia Times, will respectively deliver speeches on "Jiangsu's Financial Industry Development under the Background of the Financial Crisis" and "Development and Outlook of China's Capital Market."
According to the latest disclosure, Minsheng Bank's offering price was finally set at HK$9.08 per share, equivalent to approximately RMB 8.08, not much different from Minsheng Bank's A-share stock price on November 25th (A-shares closed at RMB 8.36 on November 25th). Based on the current average price-to-earnings ratio of about 18.3 times for domestic banks listed on the H-share market, the predicted target stock price for Minsheng Bank is HK$10.26, indicating a 14% upward potential compared to its pricing.
This Financial Expo has set up five exhibition zones, showcasing the styles of banking, securities and futures industries, insurance industries, and other financial institutions. Additionally, there are financial exhibition zones for 13 provincial jurisdictions, as well as a comprehensive financial exhibition zone. This exhibition has also attracted the participation of futures companies among "quasi-financial industries." Meanwhile, some related industries serving financial enterprises will also be displayed, including accounting firms, consulting agencies, financial equipment, asset management companies, guarantee companies, microcredit companies, etc.
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