CNFinance Announces Plan to Implement ADS Ratio Change
CNFinance Holdings (NYSE:CNF), a leading home equity loan service provider in China, has announced plans to change its American Depositary Shares (ADS) ratio from 1:20 to 1:200 Class A ordinary shares. This change will effectively function as a 1-for-10 reverse ADS split.
The ratio change is expected to take effect around September 5, 2025. ADS holders will need to exchange every 10 existing ADSs for 1 new ADS. JPMorgan Chase Bank will manage the exchange process, and CNF will continue trading on NYSE under the same symbol. No fractional ADSs will be issued; instead, fractional entitlements will be sold and proceeds distributed to affected holders.
CNFinance Holdings (NYSE:CNF), uno dei principali fornitori cinesi di prestiti basati sul valore immobiliare, ha annunciato l'intenzione di modificare il rapporto delle sue American Depositary Shares (ADS) da 1:20 a 1:200 azioni ordinarie di classe A. Tale variazione avr脿 l'effetto di un raggruppamento inverso di ADS 1-per-10.
La modifica del rapporto dovrebbe entrare in vigore intorno al 5 settembre 2025. I titolari di ADS dovranno scambiare ogni 10 ADS esistenti con 1 ADS nuova. JPMorgan Chase Bank gestir脿 l'operazione di scambio e CNF continuer脿 a essere negoziata alla NYSE con lo stesso simbolo. Non saranno emesse ADS frazionarie; gli eventuali importi frazionari saranno venduti e il ricavato distribuito ai titolari interessati.
CNFinance Holdings (NYSE:CNF), un destacado proveedor chino de pr茅stamos con garant铆a hipotecaria, ha anunciado que cambiar谩 la proporci贸n de sus American Depositary Shares (ADS) de 1:20 a 1:200 acciones ordinarias clase A. Este ajuste operar谩 como una consolidaci贸n inversa de ADS de 1 por 10.
El cambio de proporci贸n se espera que entre en vigor alrededor del 5 de septiembre de 2025. Los titulares de ADS deber谩n canjear cada 10 ADS actuales por 1 ADS nueva. JPMorgan Chase Bank se encargar谩 del proceso de intercambio y CNF seguir谩 cotizando en la NYSE con el mismo s铆mbolo. No se emitir谩n ADS fraccionarias; en su lugar, los derechos fraccionarios se vender谩n y los ingresos se distribuir谩n a los titulares afectados.
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CNFinance Holdings (NYSE:CNF), un important prestataire chinois de pr锚ts sur valeur domiciliaire, a annonc茅 son intention de modifier le ratio de ses American Depositary Shares (ADS) de 1:20 脿 1:200 actions ordinaires de classe A. Ce changement 茅quivaudra en pratique 脿 une consolidation inverse d'ADS de 1 pour 10.
La modification du ratio devrait prendre effet aux alentours du 5 septembre 2025. Les d茅tenteurs d'ADS devront 茅changer 10 ADS existantes contre 1 nouvelle ADS. JPMorgan Chase Bank prendra en charge le processus d'茅change et CNF continuera de se n茅gocier 脿 la NYSE sous le m锚me symbole. Aucune ADS fractionnaire ne sera 茅mise听; les droits fractionnaires seront vendus et le produit distribu茅 aux d茅tenteurs concern茅s.
CNFinance Holdings (NYSE:CNF), ein f眉hrender Anbieter von Eigenheimdarlehen in China, hat angek眉ndigt, das Verh盲ltnis seiner American Depositary Shares (ADS) von 1:20 auf 1:200 Stammaktien der Klasse A zu 盲ndern. Diese 脛nderung entspricht faktisch einer 1-zu-10 Reverse-ADS-Aktienzusammenlegung.
Die 脛nderung des Verh盲ltnisses soll etwa am 5. September 2025 in Kraft treten. ADS-Inhaber m眉ssen jeweils 10 vorhandene ADS gegen 1 neue ADS eintauschen. JPMorgan Chase Bank wird den Umtausch abwickeln, und CNF bleibt unter demselben Symbol an der NYSE notiert. Bruchst眉cke von ADS werden nicht ausgegeben; stattdessen werden Bruchteilsanspr眉che verkauft und der Erl枚s an die betroffenen Inhaber verteilt.
- Expected proportional increase in ADS trading price
- No impact on underlying Class A ordinary shares structure
- Maintains NYSE listing
- Holders will receive cash instead of fractional shares
- Potential fees, taxes and expenses for fractional share sales
- No guarantee of proportional price increase after ratio change
Insights
CNFinance's 1:10 reverse ADS split aims to boost share price but doesn't change underlying value or operations.
CNFinance Holdings (NYSE: CNF) has announced a significant change to its American Depositary Shares (ADS) structure, effectively implementing a 1-for-10 reverse split for ADS holders. The company will change the ratio of ADSs to Class A ordinary shares from the current 1:20 to 1:200, scheduled to take effect around September 5, 2025.
This structural adjustment requires existing shareholders to exchange every 10 ADSs they currently hold for 1 new ADS. The move will automatically increase the trading price per ADS by approximately 10x, although the company appropriately acknowledges there's no guarantee the post-split price will maintain exactly that proportion.
It's important to understand this change doesn't affect CNFinance's market capitalization or the underlying business fundamentals. The total value of all outstanding shares remains unchanged, as no actual ordinary shares are being issued or cancelled. This is purely a mechanical adjustment to the ADS structure.
For investors, there are several practical implications. Fractional shares won't be issued 鈥� instead, JPMorgan Chase Bank will sell these partial entitlements and distribute cash proceeds to affected shareholders. The ticker symbol "CNF" will remain unchanged on the NYSE.
Reverse splits are typically implemented when companies want to increase their share price, often to maintain compliance with exchange listing requirements (which usually require minimum share prices) or to appeal to institutional investors who may avoid lower-priced stocks. While the announcement doesn't specify CNFinance's exact motivation, the mechanics and implications align with standard reverse split practices in the financial markets.
For the Company's ADS holders, the change in the ADS Ratio will have the same effect as a one-for-ten听reverse ADS split. A post-effective amendment to the ADS Registration Statement on Form F-6 will be filed with the SEC to reflect the change in the ADS Ratio. The Company anticipates that the change in the ADS Ratio will be effective on or about September听5, 2025 (
Each ADS holder of record at the close of business on the date when the change in ADS Ratio is effective will be required to surrender and exchange every ten听(10) existing ADSs then held for one (1) new ADS. JPMorgan Chase Bank, N.A as the depositary bank for the Company's ADS program, will arrange for the exchange of the current ADSs for the new ones. The Company's ADSs will continue to be traded on the New York Stock Exchange under the ticker symbol "CNF".
No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the depositary bank and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses, where applicable) will be distributed to the applicable ADS holders by the depositary bank. The change in the ADS Ratio will have no impact on the Company's underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio.
As a result of the change in the ADS Ratio, the ADS trading price is expected to increase proportionally, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than ten听times the ADS trading price before the change.
About CNFinance Holdings Limited
CNFinance Holdings Limited (NYSE: CNF) ("CNFinance" or the "Company") is a leading home equity loan service provider in
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CNFinance
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FAQ
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