Shanghai Regulator Approves Bank of Shanghai's Full Acquisition of BOS International; 2025 Net Loss Narrowed

On August 17, the Shanghai Financial Regulatory Bureau disclosed its approval of Bank of Shanghai's acquisition of BOS International Limited. Upon completion, Bank of Shanghai will directly hold 100% of BOS International and strengthen consolidated management as required. The approval was granted on August 11 for the bank's application. After the acquisition, BOS International will change from a wholly owned subsidiary of Bank of Shanghai (Hong Kong) Limited to a directly held wholly owned subsidiary of Bank of Shanghai. The regulator requires the bank to complete the acquisition in accordance with laws and regulations, report progress promptly, and enhance consolidated management thereafter.

BOS International is Bank of Shanghai's wholly owned investment banking platform in Hong Kong, operating since January 2015. It holds four licenses from the Hong Kong Securities and Futures Commission: securities trading, advising on securities, advising on corporate finance, and asset management. Its main businesses include fixed income, asset management, corporate finance, and securities brokerage. In 2023, with SFC approval, these licenses and licensed activities were transferred to its wholly owned subsidiary. Previously, BOS International was a wholly owned subsidiary of Bank of Shanghai (Hong Kong) Limited, which opened in June 2013 as the group's first overseas institution with registered capital of approximately HK$6.305 billion. In March and November 2024, Bank of Shanghai (Hong Kong) injected HK$322 million and HK$800 million respectively into BOS International, raising its registered capital to HK$2.122 billion.

In 2025, BOS International completed 40 offshore bond underwriting projects with total issuance exceeding US$8.65 billion, including 13 ESG bond underwritings totaling over US$2.2 billion. In September 2025, it participated in the Shenzhen municipal government's issuance of RMB 4 billion sustainable-themed offshore RMB local government bonds in Hong Kong. Financially, BOS International faced pressure due to adjustments in the Chinese property bond market. At end-2023, its total assets were HK$2.998 billion, net assets were negative HK$234 million, and it recorded a net loss of HK$733 million for the year. In 2024, due to asset impairment losses and disposal of some property bonds, it posted a net loss of HK$1.184 billion, with year-end net assets of HK$107 million. At end-2025, total assets were HK$2.526 billion, net assets were HK$161 million, and the full-year net loss narrowed to HK$126 million.

Bank of Shanghai has made several adjustments to its subsidiary shareholding structures. In July 2026, it listed on the Shanghai United Assets and Equity Exchange to transfer 66.3 million shares of Chongzhou Shangyin Village Bank, representing 51% of that bank's total equity, at a minimum price of RMB 67.3418 million. Chongzhou Shangyin Village Bank, established in June 2012, was jointly founded by Bank of Shanghai and the Chongzhou municipal government with registered capital of RMB 130 million. According to Jianyang Rural Commercial Bank's 2025 annual report, it is advancing the absorption and merger of Chongzhou Shangyin Village Bank. In June 2025, Bank of Shanghai transferred all 102 million shares of Jiangsu Jiangning Shangyin Village Bank, representing 51% of total equity, at a price of RMB 128 million; that bank was subsequently absorbed by Changshu Rural Commercial Bank.

While divesting stakes in non-local village banks, Bank of Shanghai increased its holdings in local ones. In September 2025, regulators approved a private placement of 24 million shares by Shanghai Minhang Shangyin Village Bank, raising total share capital to 274 million shares. Bank of Shanghai was approved to subscribe to 24 million shares, lifting its total holding to 140 million shares, or 51.1% of that bank. Currently, Bank of Shanghai has first-tier branches in Shanghai, Ningbo, Nanjing, Hangzhou, Tianjin, Chengdu, Shenzhen, Beijing, and Suzhou, plus second-tier branches in Wuxi, Shaoxing, Nantong, Changzhou, and other cities, covering the Yangtze River Delta, Beijing-Tianjin, Guangdong-Hong Kong-Macao, and Chengdu-Chongqing economic zones. In 2025, the bank's branch network had total assets of RMB 3.24 trillion, with Shanghai-area branches accounting for RMB 2.66 trillion, or 82.24% of the total. Combined loan balances in Shanghai and the Yangtze River Delta accounted for 77.81% of the bank's total loans and advances.

In terms of performance, Bank of Shanghai's first-quarter 2026 report showed operating revenue of RMB 14.175 billion, up 4.25% year on year, with net interest income up 5.08% and non-interest net income up 2.94%. Net profit attributable to shareholders reached RMB 6.334 billion, up 0.66%. Asset quality remained stable: as of end-March 2026, the non-performing loan ratio was 1.18%, unchanged from end-2025, and the provision coverage ratio was 241.30%. The bank said it continues to refine its credit risk management framework across business lines, asset classes, and key products, with overall asset quality steady.