My opinion on whether the fixed increase of postal savings at this point in time harms the rights and interests of shareholders

$Postal Savings Bank (SH601658)$ Relevant netizens asked Mr. Gu Zidi’s reply to the double standard of the postal savings fixed increase question:

Yesterday, a netizen asked me, Mr. Gu Zidi thinks that the Postal Savings Bank will take advantage of the policy loopholes to pass the time trial, and then the net assets in 2021 minus the dividends of the year will be 6.64/share. Years of net assets and participation in dividends in 2022, I think the management of Postal Savings is too shameless, ask me what I think?

First of all, I respect Mr. Gu Zidi very much and support Mr. Gu Zidi’s reasonable doubts. The management of the postal savings bank is indeed very likely to do so! Moreover, I also support Mr. Gu Zidi’s torture of the management practices of the Postal Savings Bank. This is a good thing rather than a bad thing for the shareholders of Postal Savings Bank. He is helping us safeguard the rights and interests of our shareholders and plays the role of public opinion supervision. We should thank him! instead of attacking him!

As for the doubts about Mr. Gu Zidi, I agree with part of it. From the point of view of the matter itself, the practice of the Postal Savings Bank is suspicious. If it really does this, all parties involved in the fixed increase will take some advantage of the original shareholders. ! But at the same time I have reservations. In fact, we can look at this issue from a different angle: if the parties involved in the fixed increase really want to take advantage of the original shareholders, wouldn’t it be more fragrant for him to buy directly from the secondary market now? The price can be reduced by almost half (3.95 yuan to 6.64 yuan), but you can get the same rights and interests, and you can also enjoy the dividends in 2022, and it will take effect immediately without going through all kinds of troublesome fixed increase procedures, and you don’t have to end up with an old account. Shareholders are cheap infamy! But if we do this, is it really good for our old shareholders? First of all, if it is bought from the secondary market, then the money will not go into the company, but will be distributed among shareholders, then the shortfall in the redemption of 7.24 billion US dollars of preferred shares cannot be filled, and the company is lacking or saying Without sufficient capital, it is impossible to further develop to increase profits, and ultimately the interests of shareholders will be damaged. In addition, people are willing to spend 45 billion real money to participate in the fixed increase, doesn’t it prove from the side that the Postal Savings Bank is worth this price? Is it a good investment value? Does the postal savings have any hidden mines? Doesn’t it also prove that some netizens’ so-called net worth is useless? Since net worth is useless, why are you indignant to be accounted for by the increase in net worth for one year? Those who suspect that there are problems with the fundamentals of the Postal Savings Bank, the data is falsified, the profits are fake, and those who have all kinds of tricks, may I ask if you have used your brain to think about it, why are there still people willing to spend real money on the Postal Savings Bank of China with so many problems? 45 billion, to buy the shares of the Postal Savings at a premium of 60%?

So why does such a strange phenomenon occur? On the one hand, the original shareholders want to be scolded, and on the other hand, the fixed increase target has to buy against the risk of being scolded? I think the root of the problem is very complicated, but there are two main aspects: 1. It is to implement a stricter capital system than the Basel Accord, which restricts the risk of banks adding too much leverage, but at the same time, it also puts forward restrictions on the bank’s capital. High requirements have led to continuous financing for banks to develop rapidly. 2. It is the result of banks not paying attention to market value management! Allowing the stock price to fall will seriously deviate from the intrinsic value of the bank, resulting in high-quality banks being traded in the market at a price of less than 1PB, or even 0.5, 0.4, 0.3PB, making the bank lose the function of financing through the normal market! Only by way of private placement! It is hoped that the management of bank companies and relevant departments can take note of this problem, solve the concerns of the capital market and the constraints of banks’ own financing, so that our country’s financial industry can develop more steadily and well. @Today’s topic

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