Shenzhen Development Bank Gets New Name
As of Thursday Shenzhen Development Bank Co. the first listed commercial bank in the Chinese mainland have changed its name to Ping An Bank Co. marking a milestone in the local lender’s merging with Ping An Insurance Co. of China.
The bank’s stock name SDB at the Shenzhen Stock Exchange has been changed to PAB and its stock code 000001 remains unchanged. During a press conference, the bank president Richard Jackson the transition will include renaming branches, outlets, business seals and vouchers and signage’s will be fully completed in 2013.
The bank started in 1987, Shenzhen Development Bank was the first bank to be listed on the mainland and its stock was also the first one to be listed at the Shenzhen Stock Exchange. And in 1990 during the early years of reform the stocks of SDB fulfilled many of the Chinese dreams of getting rich. But from 1998 until early 2000 during the Asian financial crisis the bank have been plagued by shortage of capital and limited number of outlets and its nonperforming loan rates kept on rising.
Then in 2004, a private equity firm Newbridge Capital Inc purchased a controlling stake of 17.89 percent which made Shenzhen Development Bank to be the only mainland bank operated by foreign investors. The next step to bolster the bank’s capital was the merger to Ping An Group after the exit of Newbridge Capital. In 2010, Ping An Group started buying SDB stakes to build itself into a financial conglomerate and now owns 52.38 percent making it the bank’s largest shareholder.