Eight keywords reflect new changes and new trends in the banking industry in 2021
Our reporter Lv Dong Peng Yan
Since the beginning of this year, the quality and efficiency of the banking industry in serving the real economy has been further improved, new results have been achieved in preventing and resolving financial risks, and profitability has risen from a trough.
In the coming 2021, commercial banks, which are in a leading position in the financial institution system, play an important role in many aspects of the economy.
"A-share IPO, "maintenance of stock prices", capital replenishment, new asset management regulations, "two red lines", systemically important banks, wealth management subsidiaries, and pension financial management pilots. These "keywords" fully reflect that my country's banking industry will be in 2021. New trends and new changes in the year.
A-share IPO Bank has achieved fruitful results
2021 is undoubtedly another good year for banks' A-share IPOs.
In 2021, Chongqing Bank, Qilu Bank, Ruifeng Bank and Shanghai Rural Commercial Bank have successfully landed in the A-share market.
In addition, the Bank of Lanzhou successfully obtained the A-share listing approval of the China Securities Regulatory Commission.
According to the latest IPO applicants disclosed by the China Securities Regulatory Commission, there are still 12 banks waiting "outside the door" of A shares, and the review status of these banks has been advanced to the "pre-disclosure update" stage.
Since almost all large state-owned and national joint-stock banks have already landed on the capital market, a large number of small and medium-sized banks will impact A-share IPOs in the future. This is undoubtedly an issue for such banks that have difficulty in replenishing capital. An important means of capital replenishment.
Listed banks to "maintain stability" share price
Since the first implementation of the A-share listed bank's stock price stabilization plan in 2018, listed banks have launched a stock stabilization plan every year, and this situation will reach a climax in 2021.
Since the beginning of this year, the stock prices of listed banks have come under significant pressure, and a large area of "breaking net" has appeared.
The major shareholders and directors and supervisors of listed banks frequently took action to increase their holdings of their own shares.
According to statistics, a total of 10 banks have launched a stock price stabilization program in 2021, covering various types of state-owned large banks, joint-stock banks, city commercial banks, and rural commercial banks. The number of "stability maintenance" banks has hit a new high in recent years.
The increase in holdings by major shareholders of listed banks and directors, supervisors, and senior executives undoubtedly released a positive signal. Their increase in holdings reflects their confidence in the bank's future development and helps to restore the valuation of bank stocks.
Liao Zhiming, the chief banking analyst of China Merchants Securities, told a reporter from the Securities Daily that as the Central Economic Work Conference has set an overall tone for stable economic growth next year, it will support the increase in bank valuations. Bank stocks are expected to increase in the next year. Out of the trough.
Continuous capital replenishment
Driven by policies and their own strong demand, commercial banks’ capital replenishment steps will continue to accelerate in 2021. Capital replenishment methods have blossomed, and “18 common tools” have come to the fore. Not only perpetual bonds, secondary capital bonds, etc. Frequently used, the allotment method of listed banks has become popular again.
In 2021, a total of 50 banks will issue as many as 63 perpetual bonds, with an issuance amount of 585.5 billion yuan.
Both the number of bond-issuing banks and the number of bond-issuing banks have both achieved growth compared with last year.
The issuance of Tier 2 capital bonds of commercial banks in 2021 has reached a new high.
In 2021, the total issuance of Tier 2 capital bonds of commercial banks reached 617.273 billion yuan, an increase of several billion yuan from last year.
Similar to perpetual bonds, the continuous increase in the number of secondary capital bond issuances is related to the continuous increase in the proportion of small and medium-sized banks that issue bonds. The main force of bond-issuing banks is still local banks such as city commercial banks and rural commercial banks.
Although these banks have a small single bond scale, they still play a major role in supplementing the capital adequacy ratio of such banks.
Compared with capital replenishment tools such as fixed increase and convertible bonds, allotment has the advantage of not being restricted by the price-to-book ratio and replenishing capital quickly, and has gradually become a "new choice" for listed banks.
In 2021, three listed banks have completed or launched the allotment plan, which has also expanded the banks' capital replenishment channels.
In 2021, the use of a variety of "blood-enriching" tools will make the bank's capital replenishment achieve great results. While strongly supporting banks, especially small and medium-sized banks, to consolidate their own capital strength, it also enhances banks' ability to serve the real economy and supports small and medium-sized enterprises. Provide a great help.
New asset management regulations spur tremendous changes in the financial market
2021 is coming to an end, and the transition period of the new asset management regulations has entered the final "countdown".
As an important part of the asset management industry, the net value transformation of bank wealth management business has entered a sprint stage.
The vast majority of banking institutions can complete the net worth transformation and rectification tasks as scheduled, and a small number of banks face the pressure of being unable to complete the rectification on time in the "hurry up and slow down" process.
According to data released by the Bank’s Wealth Management Registration Center, as of the end of the third quarter of 2021, the scale of net-value products accounted for 86.56%, an increase of 26.08 percentage points from the same period last year.
Although the transformation of bank wealth management products to net value is progressing steadily, there are still some "stubborn illnesses", which mainly include amortized cost method valuation restrictions and cash wealth management rectification issues.
"Most wealth management products will complete the rectification goals as scheduled, but it does not rule out the possibility that individual products may evade supervision through multi-layer stacking or the possibility that rectification pressures are too great and cannot be completed on schedule." CITIC Securities chief FICC analyst clearly told the "Securities Daily" The reporter stated that on the one hand, commercial banks and wealth management companies should take the initiative to develop business in compliance with laws and regulations, establish and improve information disclosure systems, and strengthen investor education; Subject responsibility to promote the transformation of norms.
Yu Baicheng, Dean of Zero One Research Institute, told the "Securities Daily" reporter that on a stable basis, gradually increasing the allocation of equity assets and improving the performance of mid- and long-term returns will be the future development trend of bank net-worth wealth management products.
Strictly implement the "two red lines" policy
At the end of last year, the Central Bank and the China Banking and Insurance Regulatory Commission issued a notice requesting the establishment of a real estate loan concentration management system and setting a "red line" indicator (hereinafter referred to as the "two red lines") for the proportion of bank mortgages, which will take effect on January 1, 2021 , The implementation of the "two red lines" policy has made real estate financial supervision more perfect.
Since 2021, banks have strictly implemented the "two red lines" policy.
Under the strict policy of "two red lines", the capital pressure on real estate companies has increased significantly.
Xu Xiaole, chief market analyst at Shell Research Institute, believes that in the future, the credit environment of the real estate market will further improve, and there is still room for optimization of mortgage interest rates and lending cycles in some cities. This will further promote the stabilization of real estate market transactions at the end of this year and the beginning of next year, and prices are trading. After the volume rebounded, it stopped falling and stabilized.
System Importance Bank Unveiled
In October 2021, the list of systemically important banks with high market voices finally landed. A total of 19 banks were recognized as domestic systemically important banks, covering 6 state-owned commercial banks, 9 joint-stock commercial banks and 4 city commercial banks. , And divided into four groups according to the system importance score (the fifth group has no bank entry).
These 19 banks are at the forefront of the industry in terms of scale, business, and service levels, and are extremely important and representative in the financial system.
The "Additional Supervision Regulations for Systemically Important Banks" issued in conjunction with it require that systemically important banks should also meet certain additional capital requirements, which are between 0.25% and 1%.
Although the 19 systemically important banks currently meet the corresponding additional capital requirements, considering that they will face more business development constraints in the future, appropriate external capital supplements can reserve a certain margin of safety and buffer zones.
Therefore, since mid-October, systemically important banks have also been preparing "grain and straw" in advance.
Such banks have all appeared in the issuance of allotments, secondary capital bonds, and perpetual bonds.
Bank wealth management subsidiary becomes the main force
In 2021, bank wealth management subsidiaries have become the largest surviving institution type in the wealth management market, leading a new direction in the industry.
Since the opening of the first bank wealth management subsidiary, CCB Wealth Management, in June 2019, after more than two years of full force, the bank's wealth management subsidiary camp has gradually grown.
Up to now, 29 bank wealth management subsidiaries (including Chinese and foreign reasonable wealth companies) have opened or are under preparation.
With the continuous growth of the bank's wealth management subsidiaries, the number of wealth management products issued by them has also increased.
Puyi standard statistics show that as of now, the number of new products issued by bank wealth management subsidiaries this year is 10,604, which is an increase of 183% compared to 3,747 in the same period last year.
New products of bank wealth management subsidiaries have steadily stepped into the market, leading to a steady rise in the scale of wealth management, with a steady increase in market share, and has become an absolute mainstay in the wealth management market.
According to data released by the Bank's Wealth Management Registration Center, as of the end of September 2021, the product continuity of wealth management subsidiaries reached 13.69 trillion yuan, an increase of 36.75% over the middle of the year and a year-on-year increase of 2.75 times.
The old-age financial management pilot program officially launched
On September 10, 2021, the China Banking and Insurance Regulatory Commission issued the “Notice on Launching the Pilot Program of Pension Wealth Management Products” (hereinafter referred to as the “Notice”), stating that ICBC Wealth Management, CCB Wealth Management, China Merchants Bank Wealth Management and Everbright Wealth Management are selected in Wuhan, Chengdu, Shenzhen, and Qingdao have launched pilot projects of financial management products for the elderly.
The first batch of pilot products for pension financing was officially launched on December 6.
Pan Helin, executive dean of the Institute of Digital Economy, Zhongnan University of Economics and Law, told a reporter from the Securities Daily that pension wealth management products have enriched long-term investment channels to meet the needs of residents for pension investment and financial management.
It also brings long-term financing tools to the financial industry.
According to the aforementioned "Notice", the trial period is tentatively set for one year.
In the pilot phase, the total scale of funds raised by a single pilot institution's pension financial products is limited to 10 billion yuan.
From the perspective of sales, the pilot opening has attracted a group of "early adopters".
Once the four pension wealth management products were released, they were snapped up.
Analysys Senior Analyst Su Xiaorui told the Securities Daily reporter that in the future, the pilot work of financial management for the elderly will be smoother and mature. On the one hand, policy support and strategic guidance are indispensable, and detailed plans for the development of financial management for the elderly will be formulated through tax incentives. To mobilize the enthusiasm of the market; on the other hand, the construction of technical talents is to strengthen the infrastructure construction of financial management for the elderly.
(Securities Daily)