New asset management regulations are postponed, how to choose investment and financial management?
Zhou Lin, reporter of Economic Daily and China Economic Net
On July 31, the People's Bank of China announced that according to existing arrangements, the transition period for 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, the transition period of the new asset management regulations has been extended to the end of 2021. How do ordinary investors choose between bank wealth management and public funds?
With the extension of the new asset management regulations, the large asset management industry with a scale of nearly 100 trillion yuan in asset management will usher in new variables, especially for bank wealth management products that once enjoyed rigid redemption "hotbeds". The good news here will undoubtedly gain time for it to compete with public funds.
Guaranteed financial management for another year
According to statistics from the People's Bank of China, as of the end of May, the total assets directly aggregated by asset management products were 90.1 trillion yuan, an increase of 4 trillion yuan from the beginning of this year and a year-on-year increase of 3.5%. Among them, bank wealth management and public offering funds together account for a relatively high proportion, and they are the two asset management products with the highest attention from investors.
Specifically, the postponement of new asset management regulations has little effect on public funds. According to information released by the China Securities Regulatory Commission, products such as graded funds and wealth management debt-based products will be transformed or liquidated in different ways at the end of this year, bidding farewell to investors.
For bank financial management, the extension has undoubtedly won valuable "breathing" time. According to established rules, this year should be the last year for banks to sell capital-guaranteed wealth management products. In the future, they will break the rigid payment and transform to net worth. However, within one year after the extension of the new asset management regulations, bank financial management can theoretically continue to retain some traditional financial products such as capital guaranteed financial management in 2021. In the context of the currency fund’s “breaking 2” and the overall lower risk-free rate of return, this is self-evident to investors.
According to statistics from Oriental Jincheng International Credit Rating Co., Ltd., as of the end of July, the number of bank wealth management products in the country was 48,503, of which net-worth products accounted for only 24.91%. The improvement of products was slow, and full net worth could be achieved by the end of the year. Is less likely. As of the end of July, none of the remaining wealth management products of 146 banks have been transformed into net worth, and they are mainly concentrated in small and medium-sized rural commercial banks and city commercial banks.
Are traditional commercial bank wealth management products good? "Rigid redemption is not conducive to asset pricing, nor is it conducive to the healthy development of the asset management industry. A direct impact of the extension of the transition period is that traditional banking products and net-value wealth management products have an additional one-year parallel period. This means that investors can In the next year and a half, we will continue to buy traditional products, and we will have more time to understand and adapt to net-worth wealth management products.” Lihe, a researcher at the China Securities Golden Bull Financial Research Center, believes that the extension of the transition period for the new asset management regulations is conducive to the stability and health of the industry Development is also conducive to some investors who hold old bank wealth management products to ease the redemption pressure.
In fact, the current overall income level of net-worth wealth management products has surpassed that of traditional products, but because some investors find it difficult to accept the fluctuations in the net value of net-worth products and possible short-term losses, overall sales are not ideal. The extension of the transition period gives investors more time to understand the operating mode of net-worth products and test the actual returns of net-worth products, which is conducive to bank wealth management issuers to guide investors to transform.
Bank financial management will also have negative returns
The postponement relieved many investors who hold capital-guaranteed bank wealth management products. In fact, these investors did not see the advantages of net-worth banking wealth management products, and even ignored the "explosive" issuance record of public funds in the past year.
Net-worth wealth management products and funds are quite different in terms of regulatory agencies, investment scope, sales channels, information disclosure, etc. Generally speaking, the advantage of net-worth wealth management products lies in fixed income, and the investment range is wider than that of public funds, and non-standardized investments can be made For bond assets, the market share of a single security can reach 30%; public funds are more adept at and focused on equity investment, purchase scenarios are more diversified, and information disclosure is more timely and comprehensive. Specifically, in terms of subscription fees, the subscription fee for net wealth management products is generally zero, and custody fees, sales management fees, performance compensation, etc. are deducted during liquidation; public funds have about 1% subscription (subscription) subscription fees, redemption Fees, custody fees, etc. In terms of investment scope, bank wealth management can only invest in non-standardized bond assets. Fund investments are all standardized assets and can invest in other funds (FOF).
In general, bank wealth management products include fixed income, index, quantitative, FOF and other product investments, and benchmark products can be found in public funds. Public funds have the advantages of preferential taxation, low investment threshold, better liquidity, and open and transparent information. Compared with bank wealth management products, information openness and transparency are relatively low, and subscription fees and redemption fees are relatively high.
Lihe believes that after the new asset management regulations are broken, wealth management products will also face fluctuations in net worth of income, and the increase in equity wealth management products will not be ruled out in the future. However, the gradual emergence of equity-based wealth management products may aggravate the overall volatility and investment risks of wealth management products. Investors should make corresponding psychological preparations when investing in bank wealth management products in the future.
According to statistics from Puyi Standard, a third-party research institution, since the beginning of June, there have been 561 fixed-income net-worth wealth management models with a net book value of more than 1 yuan, accounting for 3% of remaining net-worth fixed income products, involving 75 banks. Among them, city commercial banks have the largest number of products with a net value of "breaking 1", with a total of 224 products, accounting for 40% of the number of "breaking 1" products.
Guo Quanyu, an analyst at Puyi Standards, believes that most of the banks’ current fixed-income net value products are invested in the bond market. According to the new asset management regulations, the net value of asset management products must reflect the fair value of the assets allocated, and amortized costs cannot be used. law. This change in the valuation method, combined with the overall adjustment of the bond market, resulted in a “breaking 1” in the net value of the bank's fixed-income net-worth products. In the future, fixed-income net-worth banking products will be valued according to the market value method, and net worth will truly reflect market fluctuations. It is not surprising that such bank wealth management products, like public funds, have floating losses. Investors need to break the bank’s wealth management and just redeem the old. Concept.
Convergence of the characteristics of public financing in the future
The bank's publicly offered wealth management products have experienced a net loss, showing investors the same non-guaranteed characteristics as publicly offered funds. Does this mean that the wealth management products of public banks in the future will be basically similar to those of public funds? Jiang Peng, an analyst at CITIC Securities, said that from the perspective of the relevant supporting management measures of the new asset management regulations, the future forms of publicly offered wealth management products and publicly offered fund businesses may converge. Banks and fund companies co-exist in competition and cooperation. This is also the topic of the implementation of the new asset management regulations. There is meaning.
There is also a view that the financial management of public offering banks is still quite different from public offering funds. Hu Lifeng, general manager of China Galaxy Securities Fund Research Center, believes that the approval of bank wealth management subsidiaries such as ICBC Wealth Management and CCB Wealth Management indicates that the competition for public fund management products has become more intense. Wealth management subsidiaries will become important competitors of public fund funds. After the administration of the new regulations, commercial banks have made major breakthroughs in asset management business, but the two types of products still have their own characteristics in the short term. Public funds are better at equity investments.
Both are non-commercial, net-worth asset management products, how should investors choose? Jinniu Financial Network analyst Gong Manlin believes that bank public offering wealth management products have certain advantages in fixed-income investment due to the backing of commercial banks' "big trees". Steady investors who prefer fixed-income products can pay attention to bank wealth management; Investors with higher risk appetite can pay more attention to public equity funds with rich experience in equity investment, especially fund managers with better historical performance, which are expected to gain more in the stock market.
From a tax perspective, public funds have more advantages. Specifically, under the new regulations of the "VAT reform", public funds use funds to buy and sell stocks and bonds on the spread of income exempt from value-added tax, securities firms, private equity and other non-public fund management institutions do not have this preferential, bank, insurance self-operated market, etc. The VAT rate is relatively higher. The head of Haomai Fund Research Center Zeng Linghua believes that: "Wealth management subsidiaries have a wide range of investments. They can not only standardize investment in public offerings, but also include non-standard investment in the investment scope. It is easier to achieve absolute returns in the true sense. The investment characteristics are compared with public offerings. It is advanced."
The person in charge of the relevant department of the ABC-CA Fund said: “In the short term, the influence of bank wealth management subsidiaries on the public fund industry is mainly in the fixed income business. The introduction of currency funds by banks has caused an impact on public money funds, but the two are Partners can be said to have their own advantages and disadvantages. Investors should choose suitable asset management products based on their own risk appetite, capital volume, and service types."