The central bank website announced that since the release of the “Guiding Opinions on Regulating the Asset Management Business of Financial Institutions” in April 2018, asset management chaos has been effectively curbed, shadow banking risks have significantly converged, and the asset management business has gradually returned to its roots, showing Steady development trend.
In order to steadily promote the implementation of new asset management regulations and the standardized transformation of asset management business, with the consent of the State Council, the People’s Bank of China, together with the National Development and Reform Commission, the Ministry of Finance, and the Bank The China Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other departments have carefully studied and decided to extend the transition period for the new asset management regulations to the end of 2021.
According to reports, the new asset management regulations refer to the “Guiding Opinions on Regulating the Asset Management Business of Financial Institutions” issued in 2018. The original transition period was until the end of 2020. Since it involves many products and nearly one hundred billion yuan in funds from banks, trusts, securities, funds, futures, insurance and other types of institutions, whether the transition period of the new asset management regulations will be extended has attracted much market attention.
Many asset management institutions and securities firms have interpreted this.
The transition period of this new asset management regulation affecting the RMB 100 trillion asset management market has been extended. The big news triggered heated discussions among various institutions over the weekend. A number of asset management institutions and securities firms interpreted this, taking into account the impact of the epidemic and the actual conditions of financial institutions, the extension will help ease the rectification pressure on asset management institutions and help asset management institutions better serve the real economy. The Research Department of CITIC Securities stated that the “extension of the transition period by one year + case handling” shows the supervisory authorities’ idea of ”progressive reform” and “exchanging time for space”, which is conducive to helping financial institutions and investors adapt to the implementation of new asset management regulations. For a relaxed environment. Minsheng Securities Research Institute also believes that the delayed implementation of the new asset management regulations will effectively alleviate the pressure on bank asset management businesses to rectify and help the industry maintain long-term and stable development. China Merchants Wealth stated that appropriately extending the transition period of the new asset management regulations will help asset management institutions better play a supporting and stabilizing role in the real economy and better implement the “six stability” and “six guarantees” strategies proposed by the Party Central Committee and the State Council; at the same time, it can Easing the impact of the epidemic on the asset management business will help ease the rectification pressure on financial institutions. China Merchants Wealth stated that this extension policy provides a better environment and conditions for the rectification work of the company and the asset management industry, and is conducive to the positive transformation of the company’s asset management business. Since the release of the new asset management regulations, the risks of asset management products have shown a trend of convergence. Ruan Jianhong, director of the Department of Survey and Statistics of the Central Bank, said that the risk convergence of asset management products is reflected in the following: First, the proportion of inter-bank cross-holdings continues to decline. At the end of May, the inter-bank funding sources of asset management products accounted for 49.8% of their total funding sources. It dropped by 1.2 percentage points at the beginning of the year;
The second is that the leverage ratio (the ratio of total assets to raised funds) has fallen. The average liability leverage ratio of asset management products is 107.7%, which has dropped by 0.9 percentage points from the beginning of the year;
The third is that The proportion of net value products continues to rise. At the end of May, the balance of funds raised by net value products accounted for 60.3% of the funds raised by all asset management products, 4.9 percentage points higher than at the beginning of the year;
Fourthly, the scale of non-standardized claims continues to decrease. At the end of May The scale of non-standardized debt assets invested in asset management products fell by 7.6% year-on-year, 1.2 percentage points more than at the beginning of the year.
The risks of asset management products have been controlled and they have also played a more effective role in serving the real economy.
Data from the central bank show that at the end of May, the balance of underlying assets allocated to the real economy by asset management products was 39.3 trillion yuan, an increase of 2.2 trillion yuan from the beginning of the year, accounting for 43.6% of all assets, and an increase of 0.6% from the beginning of the year. percentage point. From a structural point of view, the newly added underlying assets invested in the real economy are mainly standardized assets such as corporate bonds and stocks.
The relevant person in charge of the People’s Bank of China stated that the policy arrangements for the extension of the transition period have comprehensively considered the impact of the epidemic, the macro environment, market impact, real economy financing and other factors, and are based on seeking truth from facts. The decision made in principle adheres to the original intention and bottom line of the new asset management regulations to control financial chaos and standardize healthy development. It does not involve changes and adjustments to the regulatory standards of the asset management business, and does not mean a change in the direction of the reform of the asset management business. This arrangement, on the one hand, is conducive to consolidating the results of early risk mitigation and promoting the continued transformation and upgrading of the asset management business. On the other hand, it will help alleviate the impact of the COVID-19 epidemic, stabilize the financing supply to the real economy, and increase financial support for the real economy. </p
