CZBank's subsidiary Zheyin Financial Leasing to increase capital

China Zheshang Bank (HKEX: 2016) announced updates regarding a proposed capital increase in its subsidiary, Zheyin Financial Leasing. Zheyin Financial Leasing intends to issue an additional 700 million shares. CZBank plans to subscribe to 500 million of these shares, contributing up to RMB1,020 million, while Zhoushan Marine will acquire 200 million shares with a contribution of up to RMB400 million. The capital increase aims to strengthen Zheyin Financial Leasing's capital base and support its growth. While Zhejiang Financial Holdings waived its subscription rights, the transaction may constitute connected transactions for CZBank under listing rules. The bank has not yet entered into a formal agreement but expects the capital increase to positively impact its strategic synergies and return on capital. CZBank emphasized that the increase will not negatively affect normal operations or its financial condition.