CCTV News:The sharp edge of the new asset management regulations hanging over the wealth management market has finally fallen, and the 100 trillion-scale asset management industry has officially ushered in a milestone of compliance.
On April 27th, the People’s Bank of China, the Insurance Regulatory Commission of the Bank of China, the China Securities Regulatory Commission and the State Administration of Foreign Exchange jointly issued the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (hereinafter referred to as the Opinions).
China’s asset management products span different financial markets and have the characteristics of channels. The contradictions between various industries engaged in asset management business and cross-market areas are concentrated. Some financial institutions still have problems such as excessive leverage, multi-layer nesting and rigid redemption in the process of asset management business.
With the increasing scale of asset management products, the risks also rise rapidly. If left unchecked, once the risk erupts, it will be transmitted across industries and markets, affecting not only China’s financial market, but also the real economy and ordinary financial consumers.
Therefore, the implementation of this new asset management regulation is of great significance, which is not only related to the national financial stability at the macro level, but also affects the entire financial market structure. From the perspective of ordinary investors, the new asset management regulations will also have a certain impact on the short-term stock market and bond market. How exactly will that affect our "money bag"?
What is asset management?
According to the Opinions, asset management business refers to financial services that banks, trusts, securities, funds, futures, insurance asset management institutions, financial asset investment companies and other financial institutions are entrusted by investors to invest and manage the entrusted investors’ property.
Generally speaking, asset management is asset management, and we hand over money to professional institutions for investment and management, that is, financial management on behalf of customers. So, have you asked relevant institutions to help manage assets?
The data shows that in recent years, the scale of asset management business of China’s financial institutions has been rising. By the end of 2017, regardless of cross-holding factors, the total scale has reached tens of billions of yuan, mainly including seven categories of asset management products, namely off-balance-sheet wealth management of banks (22.2 trillion), trust (21.9 trillion), asset management plan of securities companies (16.8 trillion), asset management plan of funds and their subsidiaries (13.9 trillion) and Public Offering of Fund (.
But as long as there is wealth management, it can’t escape the 100 trillion asset range. In other words, as long as you have financial management, you will definitely be related to asset management products.
Just broke the exchange, Say No to protect the capital and interest!
Bank wealth management occupies the largest scale in the entire wealth management market, and the biggest impact of the new asset management regulations is bank wealth management, which is also the area with the highest participation of ordinary people. Many ordinary people choose bank financing, the main reason is not only to protect the income, but also the income is higher than the deposit interest. However, after the implementation of the new asset management regulations, bank financing is no longer allowed to protect the income.
The "Opinions" clarify that financial institutions shall not promise to protect capital and income when conducting asset management business. When it is difficult to pay, financial institutions shall not advance payment in any form.
Article 19 of the Opinions also clarifies what behavior belongs to rigid redemption. To sum up simply, the behavior of financial institutions to deal with the principal-guaranteed income when the wealth management products cannot be redeemed as scheduled or are difficult to redeem is defined as rigid redemption. Figuratively speaking, financial institutions borrow money from you at a fixed interest rate, and give you the principal and interest at maturity. If you earn more, the institutions keep it, and if you lose, the institutions post it to you.
In fact, not long ago, Guo Shuqing, Chairman of China Banking and Insurance Regulatory Commission, reminded investors that they should report the statement of "capital preservation and high returns", because it is impossible to achieve high returns with capital preservation. This statement belongs to financial fraud. The new regulations also express the determination to break the rigid redemption: any unit or individual who finds that a financial institution has a rigid redemption behavior can report it to the financial management department, and if the verification is true and the contents of the report are not mastered by the relevant departments, appropriate rewards will be given.
"Rigid redemption deviates from asset management products ‘ Entrusted by others to manage money on behalf of others ’ The essence of raising the risk-free rate of return and interfering with the price of funds not only affects the decisive role of the market in resource allocation, but also weakens market discipline, leading some investors to take risks and speculate, financial institutions are not conscientious, and moral hazard is more serious. " The relevant person in charge of the central bank said when answering a reporter’s question.
Therefore, if there is an organization that publicizes that its own wealth management products protect the capital and income, everyone should be careful! Then, with the restrictions on the usual behaviors in financial market propaganda such as "capital preservation", how do people’s financial management concepts and behaviors need to adapt? Yin Zhentao, deputy director of the Law and Finance Research Office of the Institute of Finance of the Chinese Academy of Social Sciences, said: "Wealth management products and asset management products are inherently risky, not deposits, and high returns are doomed to high risks. Only by adhering to this principle, financial institutions will not take risks or regulatory arbitrage for rigid redemption. For ordinary people to manage their finances, they must strengthen their risk awareness and financial management knowledge. "
Short-term financial management will become a thing of the past.
Usually, the longer the term of wealth management products, the higher the income. However, at this stage, there are a large number of short-term non-guaranteed wealth management products for less than three months, which are favored by market investors because of their high yield and are often very popular. But in fact, these short-term bank wealth management are all investing in long-term assets, but banks invest in long-term assets with short-term funds through maturity mismatch.
In this new asset management regulation, there are new provisions for this kind of situation, that is, the cycle of wealth management products: financial institutions should strengthen the long-term management of asset management products, and the term of closed asset management products should not be less than 90 days.
The restriction of this cycle will have a certain impact on investors with high liquidity requirements. For ordinary people, the biggest difficulty is to make a choice between liquidity and income, and short-term liquidity must be given up if income is to be obtained. Therefore, it may attract some short-term financial management funds to turn to the more liquid money fund field, or enter the current savings.
The investment threshold has increased.
Investors in asset management products are divided into two categories: unspecified public and qualified investors. Unspecific people are well understood by the public, that is, ordinary people who do not need professional financial knowledge, investment experience or a lot of money. In addition to bank wealth management, the wealth management that ordinary people have more contact with is the fund.
According to the Opinions, public offering products and open private offering products are not allowed to be graded. Therefore, the implementation of the new regulations will greatly increase the threshold of private placement products issued by banks, brokers, funds and other institutions, because the threshold of qualified investors has increased.
According to the new regulations on assets, the specific conditions of qualified investors are clearly defined as follows: (1) Having more than 2 years of investment experience and meeting one of the following conditions: family financial net assets are not less than 3 million yuan, family financial assets are not less than 5 million yuan, or my average annual income in recent 3 years is not less than 400,000 yuan. (2) A legal entity with a net asset of not less than 10 million yuan at the end of the latest year. (3) Other circumstances that the financial management department regards as a qualified investor.
For the relevant standards of qualified investors, the new regulations clearly define the investor groups and sources of funds, and the entry threshold for investment has also been greatly improved. This means that people who do not meet the corresponding standards cannot make relevant investments.
Wealth management income is expected to increase and the transition period will be extended to the end of 2020.
According to the new asset management regulations, with the net management of bank wealth management, net wealth management may become a product that cannot be underestimated in the wealth management market.
At present, most bank wealth management products are expected rate of return, that is to say, a good investment period and rate of return, regardless of capital preservation or non-capital preservation, are basically paid together with the income. Net worth products are different, just like buying a fund, which needs to be valued every day. If you earn more, it will be yours, and if you lose, there will be no subsidies. If the net value is 0.8, your money will be 80,000 yuan, and you will lose 20,000 yuan. On the contrary, if the net value is 1.3, you will earn 30,000 yuan.
Compared with traditional capital preservation financing, the expected return of net worth financing is more volatile, and investors need to have certain risk tolerance, but the return may be higher. Through the management of net worth, people can know the risk of products and their own income space, and will gradually establish the investment concept of "the buyer is responsible".
Since the release of the draft of the new regulations on asset management, a considerable number of investors have begun to worry about what to do with their old products after the introduction of the new regulations. Will it "draw water with a sieve" because it does not meet the requirements?
The new regulations have made it clear that the transition period for the setting of "new and old products" will be extended from June 30, 2019 in the draft for comments to the end of 2020 in the official Opinions. It can be said that the extension of this transition period is a positive adjustment beyond expectations.
In the long run, the new regulations will help accelerate the transformation of asset management products and services, guide the asset management business back to the essence of "entrusted by people and managing money on behalf of others", and promote the asset management business to be more standardized and healthy. However, there is a long way to go to standardize asset management business and prevent and control financial risks. Financial institutions, regulatory authorities and all sectors of society must further form a joint force and pay more wisdom and efforts to help the industry enter a stage of steady development. (Text/Li Shanshan Comprehensive Editor from: People’s Daily Xinhua News Agency)