June 14, 2019 / 1:43 PM / 3 months ago

UPDATE 1-Two Jiangsu-based lenders to set measures to boost share prices

(Adds Suzhou Bank’s announcement, details)

BEIJING, June 14 (Reuters) - Two Chinese lenders based in Jiangsu province said on Friday they will announce measures to shore up their share prices, which have fallen below their 2018 net asset value per share due to concerns over the health of smaller regional lenders.

Jiangsu Jiangyin Rural Commercial Bank said its board would hold a meeting to set a share price-stability scheme that allows the lender to conduct a share buyback to prop up its share price, it said in a filing to the Shenzhen stock exchange.

Separately, Jiangsu Suzhou Rural Commercial Bank Co Ltd announced similar measures aimed at stabilising its share price in a filing to the Shanghai stock exchange.

Shares in China’s smaller regional lenders have fallen after a rare state takeover of troubled regional lender Baoshang Bank in May, highlighting the struggle facing some smaller regional lenders that suffer from deteriorating asset qualities, inadequate capital buffers, and poor internal controls and corporate governance.

The two lenders’ share prices have closed below their 2018 net asset value per share for 20 consecutive trading days between May 17 and June 14, the filings showed, triggering the board’s discussion of stability measures. (Reporting by Meg Shen in Hong Kong, Cheng Leng, Ryan Woo and Beijing Monitoring Desk; editing by Gopakumar Warrier and David Evans)

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