Analysis of the Business Prospects of Jiangsu Qidong Zhujiang Rural Bank After Acquisition

Based on my search results, I found an important conceptual clarification that needs to be explained.

The ‘Qidong Zhujiang’ you asked about is not a Volvo supplier, but

. According to public information, Jiangnan Rural Commercial Bank held an extraordinary shareholders’ meeting on December 26, 2025, to review the proposal to absorb and merge Jiangsu Qidong Zhujiang Rural Bank [1][2].

This acquisition is part of the wave of ‘reducing quantity and improving quality’ reform of China’s rural financial institutions. The 2025 Government Work Report clearly proposed to actively prevent risks in the financial sector and promote risk disposal and transformation of local small and medium-sized financial institutions [1]. As of December 15, 2025, the number of rural banks nationwide has decreased from 1,587 at the end of 2024 to 1,301 [1].

• Service Connection
  : After the cancellation of rural banks in some remote areas, there may be a gap in the service transition period for a period of time, which must rely on regulatory-guided temporary service points, cross-institution agency, and other methods for connection [1]
• Business Continuity
  : Except for the change of branch names, all businesses will continue as usual, with limited impact on existing customers [1]

• Capital Strength Enhancement
  : The capital strength of the integrated institution will be significantly enhanced, enabling it to better undertake the tasks of supporting agriculture and small businesses [1]
• Risk Control Capability Improvement
  : Risk control capabilities and service efficiency will be significantly improved [1]
• Resource Allocation Optimization
  : Improve the efficiency of financial resource allocation through integration, and avoid risks caused by ‘one-size-fits-all’ exit [1]

Professor Wang Tingting from the School of Finance at Central University of Finance and Economics predicts that the integration trend of small and medium-sized financial institutions will continue in 2026, but the pace may slow down and become more refined [1]. The integration model will shift to precise integration; for example, mergers and acquisitions of inefficient institutions by high-quality institutions, and the transformation of rural banks into branches of state-owned large banks will become mainstream models [1].

After Jiangsu Qidong Zhujiang Rural Bank is absorbed and merged by Jiangnan Rural Commercial Bank, there will be a certain service transition adjustment period in the

, but its business prospects are positive in the . After integration, it can obtain stronger capital support, a more complete risk control system, and more efficient operational capabilities, which is conducive to providing better financial services to local customers.

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[1] China Business Journal - “Over 300 Exit This Year: Integration of Small and Medium-Sized Financial Institutions Accelerates” (https://finance.eastmoney.com/a/202512203597214091.html)
[2] Yin’ao Management Consulting Analysis (http://dianzibao.cb.com.cn/images/2025-12/22/07/2633B03B.pdf)