Following a 24-hour auction, a block of 30.04 million shares in BANKOFJIUJIANG (ASX: 06190) has failed to find a buyer.

The auction for the stake, held by Junhe (Xiamen) Holding Co., Ltd. (Junhe Holding), concluded on July 15th with zero bidders registered, resulting in a failed sale.

These shares were listed on an asset auction platform the previous day with an assessed value of 370 million yuan and a starting bid set at 259 million yuan, representing a 30% discount to the valuation.

Third Failed Sale This Year

This marks the third failed auction for BANKOFJIUJIANG shares this year. In March, two separate stakes held by another major shareholder, Jiangxi Baosheng Industrial Co., Ltd., were also put up for sale without success. One block of 23.652 million shares was offered at a 50% discount, while another of 18 million shares was listed at a 30% discount, yet neither attracted any bids.

Records show these stakes have been listed for auction multiple times with progressively lower starting prices, all ending unsuccessfully.

Beyond the frequent share sales, trading activity for BANKOFJIUJIANG's H-shares has been subdued. As of July 15th, the daily turnover was a mere 3,976 Hong Kong dollars, with instances of zero turnover occurring in prior sessions. The share price has been on a volatile downtrend since November 2022, reaching a low of HK$1.476 per share, and closed at HK$2.75 on July 15th.

Financially, the bank reported operating income of 10.48 billion yuan for 2025, a slight increase of 0.85% year-on-year, and net profit attributable to shareholders of 828 million yuan, up 11.16%. By the end of 2025, its total assets had grown to 523.44 billion yuan.

However, its core tier-1 capital adequacy ratio fell to 8.87% at the end of 2025, down from 9.44% a year earlier, approaching the regulatory minimum of 7.5%. To address capital pressures, the bank announced a private placement in June to raise approximately 3.6 billion yuan, intended to replenish its core tier-1 capital.

Controller of Seventh-Largest Shareholder Missing

Junhe Holding, the seller of the latest failed auction, was the seventh-largest shareholder of BANKOFJIUJIANG as of the end of 2025, holding 86.6531 million shares, or a 3.04% stake. Bank filings indicate that 30.04 million of these shares were pledged as of the end of 2023.

Junhe Holding was established in 2008 with diverse business interests. Its controlling shareholder, Junhe Group, has frequently appeared on lists of top Chinese private enterprises. The ultimate controller of Junhe Group is He Qi, a figure once known as the richest person in Changle, Fujian province, with his wealth peaking on the Hurun Rich List in 2022.

In 2025, reports emerged of financial difficulties at Junhe Group, including broken capital chains and stalled projects. Multiple media outlets have reported that He Qi is currently "missing." Junhe Holding has been subject to multiple court orders and restrictions.

In December of last year, another block of 44.6131 million BANKOFJIUJIANG shares held by Junhe Holding was auctioned but also failed to sell. The latest attempt to sell a different portion of its stake, even at a significant discount, has met the same fate.