Bank of Guizhou (06199) has executed a Deposit Assumption Agreement with Panzhou Wanhe Rural Bank, under which it will take over all customer deposits and related liabilities of Panzhou Wanhe effective 1 August 2026.

The Bank will assume principal and interest of RMB1.78 billion, offset by RMB85 million of statutory deposit reserves already lodged with the People’s Bank of China, resulting in a net assumed liability of RMB1.70 billion.

As consideration, Panzhou Wanhe has transferred to a newly-established trust all income rights to its assets—including loan receivables, tangible assets and cash—carrying a book value of RMB1.98 billion as of 1 August 2026. Bank of Guizhou has received 1.699 billion trust units, representing a provisional 80 % share of the trust. The final economic benefit will depend on asset recoveries and any recognised claims from other creditors.

The transaction forms part of China’s ongoing village and township bank reform, with Bank of Guizhou acting as principal promoter to safeguard depositor interests and mitigate sector risk. Under Hong Kong Listing Rules, the deal qualifies as a discloseable transaction (highest percentage ratio >5 % but <25 %), triggering announcement obligations but not shareholder approval.

The Bank will provide ongoing disclosure of its trust share and the value realised from the underlying assets in future periodic reports. Shareholders and investors are advised that the eventual benefit to the Bank hinges on actual asset collections and the final creditor structure.