China News Service, July 31. According to the website of the People’s Bank of China, with the approval of the State Council, the People’s Bank of China, in conjunction with the Development and Reform Commission, the Ministry of Finance, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Bureau, has carefully studied and decided to extend the "Guiding Opinions on Management Business" (Yinfa [2018] No. 106, hereinafter referred to as the “New Regulations on Asset Management”) transition period to the end of 2021. The extension of the transition period does not involve changes and adjustments in the relevant regulatory standards of the new asset management regulations.
Since the issuance of the new asset management regulations, with the joint efforts of all parties, the chaos in asset management has been effectively contained, the risks of shadow banking have been significantly reduced, and the asset management business has gradually returned to its roots, showing a trend of steady development. According to the existing work arrangements, the transition period of the new asset management regulations will end at the end of 2020. Taking into account the impact of the new crown pneumonia epidemic on the economy and finance this year, financial institutions are facing greater pressure on the transformation of the asset management business standard. In order to smoothly promote the implementation of new asset management regulations and the transformation of asset management business standards, with the approval of the State Council, the People’s Bank of China, in conjunction with the Development and Reform Commission, the Ministry of Finance, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the foreign exchange bureaus, prudently studied and decided to extend the transition period for the new asset management regulations Until the end of 2021.
In order to do a good job in the rectification and reform of the stock asset management business during the transition period, the financial management department will establish and improve the incentive and restraint mechanism to consolidate the main responsibility of the financial institution. On the basis of locking the stock assets, the financial institution will continue to independently adjust the rectification plan and monitor the implementation on a quarterly basis. Effectively prevent moral hazard. At the same time, improve supporting policy arrangements, increase innovation support, and provide more methods and channels for the disposal of stock assets.
In this regard, the relevant person in charge of the People's Bank of China answered reporters' questions on issues of concern to all parties.
Why extend the transition period of the new asset management regulations?
Since the beginning of this year, the new crown pneumonia epidemic has caused a serious impact on the global economy, and some companies have increased production and operation difficulties. Appropriately extending the transition period of the new asset management regulations is to start from the normalization of epidemic prevention and control, and do a good job in the "six stability" and "six guarantees". Specific measures. The first is to promote the smooth rectification of the asset management stock business. The new crown pneumonia epidemic has had a two-way impact on the asset management business from the capital side and the asset side, especially on the asset side. Some industries and enterprises have increased operating difficulties, and the original repayment arrangements of some investment projects are facing adjustments. Properly extending the transition period can alleviate the impact of the epidemic on the asset management business and help ease the pressure on financial institutions for rectification. The second is to provide a relaxed environment for financial institutions to cultivate standardized asset management products. Appropriate extension of the transition period can further enhance the investment, research and innovation capabilities of asset management institutions, strengthen investor education and long-term capital cultivation, provide a better environment and conditions, and support asset management products to increase their compliance with various regulations. The intensity of asset allocation.
What are the main considerations for extending the transition period by one year?
The first is the balance between stabilizing growth and preventing risks. Extending the transition period by one year will allow more stock assets with longer maturities to expire naturally, which will help avoid the pressure on financial institutions from the centralized disposal of stock assets. Second, the transition period should not be extended too much. The original intention of the transition period arrangement is to ensure the smooth transformation of the asset management business and realize the smooth transition from old products to new products. Extending the transition period by one year can encourage financial institutions to "jump up and pick peaches," and while hedging the impact of the epidemic, promote early rectification and early transformation of financial institutions. The third is to maximize the effectiveness of policies. The extension of the transition period by one year can better coordinate the relationship between the rectification of stock business and the development of innovative business, and drive the standardized rectification of stock assets through the transformation and upgrading of asset management business.
What are the main policy arrangements for the extension of the transition period for one year?
In order to steadily advance the rectification and standardization of asset management business, the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Bureau, in conjunction with relevant departments, have studied and put forward the policy arrangement of "appropriate extension of the transition period + case handling". Mainly include: First, extend the transition period of the new asset management regulations to the end of 2021. On the basis of locking the stock assets at the end of 2019, financial institutions will independently adjust the rectification plan. Second, for individual financial institutions that are still unable to complete rectification before the end of 2021, after the financial institution has explained the reasons and approved by the financial management department, it will deal with the case, list the detailed resolution plan, monitor the implementation monthly, and implement differentiated regulatory measures. The third is to improve supporting measures for the disposal of stock assets. Encourage the orderly disposal of stock assets in a variety of ways such as new product acceptance, market-based transfers, contract changes, and return of accounts. Allow credit assets to be returned to the balance sheet when they meet credit conditions, and appropriately increase regulatory tolerance. After the defaulted credit assets are returned to the balance sheet, they can be disposed of by means of verification, batch transfer, etc. Encourage the disposal of equity assets through market-based transfers and other methods. Properly dispose of the stock assets of the bank's wealth management investment, and avoid rectification by simply selling. Optimize the issuance environment of banks' capital supplementary instruments to further enhance the capital strength of financial institutions. Promote the development of the financial market, improve the ability to continue new products, and guide the asset management industry to provide long-term stable financial support for the capital market.
How to ensure the smooth and orderly implementation of rectification work during the transition period?
The first is to compact the main responsibility of financial institutions. Financial institutions lock in stock assets to be rectified, independently adjust rectification plans, prepare rectification asset ledgers, implement inventory management, and monitor and implement quarterly during the transition period. The second is to establish a sound incentive and restraint mechanism. For financial institutions that complete the rectification tasks before the end of 2020, or although the rectification is postponed to the end of 2021, but the progress is faster than planned, and can complete the rectification tasks ahead of schedule, appropriate measures will be given in terms of regulatory rating, macro-prudential assessment, capital replenishment tool issuance, and innovative business development. excitation. For financial institutions that fail to complete their rectification tasks by the end of 2021 as planned, in addition to punitive measures in terms of regulatory ratings, macro-prudential assessments, and innovative business development, they will adopt regulatory talks, regulatory notifications, issuance of regulatory letters, and suspension as appropriate. Measures to develop business and increase deposit insurance rates. Regarding acts such as fraud by individual institutions or selective implementation of relevant requirements, the regulatory authorities will adopt regulatory penalties. The third is to strengthen supervision and coordination and promote policy implementation. The People's Bank of China will establish a liaison and coordination mechanism for asset management business rectification work with relevant departments, strengthen policy coordination, and create a good policy environment for rectification work.
Does the extension of the transition period mean a change in the direction of asset management business reform?
The policy arrangements for the extension of the transition period have taken into account the impact of the epidemic, the macro environment, market influences, and real economy financing. The decision was made based on the principle of seeking truth from facts and adhered to the new asset management regulations to control financial chaos and regulate health. The original intention and bottom line of development does not involve changes and adjustments in the regulatory standards of the asset management business, and does not mean a change in the direction of asset management business reform. This arrangement, on the one hand, is conducive to consolidating the results of early risk resolution and promoting the continuous transformation and upgrading of the asset management business. On the other hand, it will help alleviate the impact of the new crown pneumonia epidemic, stabilize the financing supply to the real economy, and increase financial support for the real economy.
In the next step, the financial management department will earnestly supervise and urge financial institutions to carry out standardized rectification during the transition period, and promote the sustainable and healthy development of asset management business.