Shanghai Bank Completes Redemption and Delisting of Its Preferred Shares

On 22 December 2025, Shanghai Bank (stock code 601229) announced that it had fully redeemed the 200 billion‑yuan preferred‑share issue originally issued in December 2017. The bank paid a total of 208.04 billion CNY to its preferred‑shareholders, covering the face value and dividends for the period from 19 December 2024 to 18 December 2025. The redemption was executed through the Shanghai branch of the China Securities Depository and Clearing Corporation, and the shares were officially cancelled on 19 December 2025.

The completion of the redemption also ended the trading of the preferred shares on the Shanghai Stock Exchange. The announcement, issued by the board of directors on 23 December 2025, confirmed that the preferred‑share issue was now fully retired and had been removed from the market.

Context: A Broader Wave of Preferred‑Share Redemptions

Shanghai Bank’s decision follows a trend that has seen nine Chinese commercial banks redeem more than 100 billion CNY of preferred‑share capital in 2025 alone. Other banks that have undertaken similar actions include Beijing Bank, Hangzhou Bank, Nanjing Bank, and Changsha Bank, with a cumulative redemption volume of 458 billion CNY. The high‑yield preferred shares, which were issued to bolster banks’ capital ratios, have become increasingly costly to hold in a low‑interest‑rate environment. By redeeming these instruments, banks can reduce dividend payments and improve their balance‑sheet leverage metrics.

Analysts note that the rapid retirement of older preferred‑share issues has tightened the supply of such securities in the market, making remaining preferred‑shares more scarce and potentially more valuable to institutional investors who view them as a niche capital‑raising tool.

Financial Snapshot of Shanghai Bank

  • Market Capitalisation: 140 240 million CNY
  • Share Price (22 Dec 2025): 9.90 CNY
  • 52‑Week High: 11.47 CNY
  • 52‑Week Low: 8.48 CNY
  • P/E Ratio: 6.77

The bank’s share price has traded within a relatively narrow band over the past year, reflecting steady demand from investors who value its diversified banking services—including deposits, loans, foreign exchange, and fund management—across both retail and corporate segments.

Additional Corporate Initiative: Nihao China App

In parallel with its capital‑structure adjustments, Shanghai Bank has partnered with the Nihao China app to enhance inbound tourism services. The app, launched on 22 December 2025, offers a one‑stop digital platform for overseas visitors, covering payment, travel, lifestyle, and cultural‑tourism needs. Shanghai Bank’s involvement provides a seamless banking interface for users, supporting UnionPay card usage and other payment methods. This initiative aligns with China’s broader strategy to improve the inbound tourism experience and promote economic openness.

The information above is derived from the company’s formal announcement, regulatory filings, and reputable news outlets as of 23 December 2025.