The asset management industry is taking advantage of the trend to transform in an orderly manner
Four years ago, on April 27, the People's Bank of China, the China Banking and Insurance Regulatory Commission and other departments jointly issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" (hereinafter referred to as the "New Regulations on Asset Management").
After the promulgation of the new regulations on asset management, on the one hand, the wealth management market completed the rectification in an orderly manner as scheduled, the net value of wealth management products has been greatly improved, and the quality and efficiency of services to the real economy have been significantly enhanced.
On the other hand, since the end of the transition period at the end of last year, the development of the asset management industry still faces many challenges. The transformation task of the asset management industry is arduous, and there is still a long way to go in the future.
Meet the needs of the real economy
In recent years, in the face of complicated domestic and international economic and financial situations, the asset management industry has successfully achieved an effective transition under the old and new rules and regulations, and has maintained a certain growth with its unique resilience.
At the 2022 Asset Management Summit of the China Wealth Management 50 Forum held recently, Fu Wanjun, President of China Everbright Bank, said that under the guidance and help of the regulatory authorities, my country's asset management industry, including bank wealth management, continues to return to its origins and enter the A new stage of steady development.
According to the "China Asset Management Market 2021" report jointly released by China Everbright Financial Services and Boston Consulting Group, by the end of 2021, the size of my country's asset management market will reach 134 trillion yuan, an increase of 11% from the end of 2020 and a record high.
Overall, the asset management industry has embarked on a sound development track.
Shang Fulin, chairman of the China Wealth Management 50 Forum and former chairman of the China Banking Regulatory Commission, said that the current reform goals have made positive progress.
On the one hand, the industry's own ecology has been significantly improved, regulatory rules have been gradually improved, and regulatory arbitrage and market chaos have been effectively curbed.
The net value level of wealth management products has increased significantly, reaching 93%, and a wealth management market pattern dominated by wealth management companies and supplemented by banking institutions is taking shape.
In addition, product investment targets are more diverse, and innovations in areas such as pension wealth management, cross-border wealth management, and ESG investment are accelerating.
On the other hand, the service quality and efficiency of the asset management industry to the real economy have been significantly enhanced.
With the reduction of capital idling, the financing chain of enterprises is shortened, and the raised funds flow more effectively to the real economy, providing financial support to support the national key strategic construction, help the prevention and control of the new crown pneumonia epidemic and the resumption of work and production.
By the end of last year, wealth management products had supported the real economy by about 25 trillion yuan by investing in assets such as bonds, non-standardized claims, and unlisted companies' equity.
"From the perspective of the domestic market structure, the size of my country's asset management market is 134 trillion yuan, while the total assets of financial institutions is about 382 trillion yuan. The ratio of asset management scale to the total assets of financial institutions is about 35%. Next, this The proportion has a further growth trend. It can be said that my country's asset management business has become an important part of the entire financial market." Yang Kaisheng, former president of ICBC, said that the asset management industry should take the initiative to take the initiative to play a good role in the financial system. The indirect financing market helps and fills the gap, thereby strengthening the support for the high-quality development of the real economy.
For example, focus on energy conservation and environmental protection, energy innovation and other fields, and rationally allocate public funds to the operation of the real economy to meet the financing needs of the real economy.
Shang Fulin said that the asset management industry cannot be separated from the fundamental goal of serving the real economy.
On the one hand, it is necessary to integrate into the overall situation of economic and social development, and increase investment and support for "specialized, specialized and innovative" small and medium-sized enterprises, comprehensive rural revitalization and other fields and industries.
On the other hand, it is necessary to continue to deepen the structural reform of the financial supply side, vigorously develop the capital market, give full play to the pooling of medium and long-term funds, flexibly allocate assets, and undertake the allocation needs of residents' wealth management assets.
Rational view of net worth fluctuations
In the first quarter of this year, more than 2,000 wealth management products broke the net, mainly concentrated in equity and mixed wealth management products. The net value of most wealth management products retreated, attracting investors' attention.
Due to the resonance adjustment of domestic and foreign stock and bond markets, wealth management products are facing the first test of the new asset management regulations since the end of the transition period at the end of last year.
"The financial products' breaking net is a market-oriented fluctuation caused by various reasons." Yang Kaisheng said that in this process, asset management institutions must pay attention to their own risk prevention and control, and on the other hand, they must learn how to understand the concept of risk. It is correctly transmitted to investors, and the appropriate management of investors is regarded as the core part of the asset management business, and the risk appetite and actual risk tolerance of customers are accurately assessed.
Cheng Jiajun, president of the Banking Financial Management Registration and Custody Center, said that according to industry statistics, the overall fluctuation range is limited, and the proportion of products involved is extremely low.
According to statistics, there are only more than 300 wealth management products with a withdrawal rate of more than 5% in the whole market, accounting for 2% of the total number of withdrawn products and less than 1% of the total number of surviving products in the wealth management market. The overall performance of the market is relatively stable. Wealth management companies should continue to pay attention to information disclosure and deliver information to investors in a timely, complete and convenient manner.”
In order to promote the high-quality development of wealth management companies, Chengjiajun suggested that, on the one hand, in terms of business operation expansion and risk prevention and control, a risk isolation mechanism should be established and improved with the parent bank.
On the other hand, in terms of system operation and maintenance, customer service, and channel management, it is necessary to establish and improve a standardized cooperation mechanism with the parent bank.
At present, the regulatory authorities are speeding up the research and formulation of relevant regulations on strengthening the construction of the internal control mechanism of wealth management companies.
With the full implementation of the new regulations on asset management, bank wealth management has entered the era of net worth.
According to the "Annual Report on China's Banking Wealth Management Market (2021)" released by the Banking Wealth Management Registration and Custody Center, by the end of 2021, the scale of the bank's wealth management market will reach 29 trillion yuan, a year-on-year increase of 12.14%.
The transformation to net worth of products is very significant. The balance of net worth wealth management products is 26.96 trillion yuan, accounting for 92.97%, an increase of 23.89 trillion yuan compared with before the release of the new asset management regulations.
The vast majority of banks have completed the task of stock rectification as scheduled, and the short-term wealth management products that are not compliant with principal-guaranteed wealth management have been "cleared".
Yang Kaisheng said that the asset management industry can only further firmly establish risk awareness and strengthen its own compliance culture construction, enhance the endogenous driving force of compliant operation, and actively strengthen the all-round management and control of credit risk, market risk, liquidity risk and operational risk. Only by being optimistic and managing people's money bags can they gain opportunities and motivation for sustainable development.
Further broaden investment channels
In recent years, the importance of the asset management industry in the entire financial market has become increasingly prominent.
With the liberalization of interest rates and the improvement and development of the capital market, residents' demand for wealth management has been further activated.
Market demand is transforming, can the asset management industry adapt to such a transformation?
Tu Guangshao, former vice chairman of the China Securities Regulatory Commission, said that to promote the high-quality development of the asset management industry, it is necessary to make an orderly transformation in terms of market demand and business model.
The asset management industry does not exist independently. The development of the asset management industry must meet market demand, and at the same time, it must improve its own capabilities and transform itself.
"The transformation of market demand is the core driving force for the high-quality development of the asset management industry. In short, it is whether to meet the market's demand for the asset management industry. ."
Specifically, from the perspective of the transformation of residents' wealth structure and financial management methods, Tu Guangshao said that the previous analysis was from savings to non-savings, and from physical assets to financial assets.
Real estate real estate acts or plays the function of financial investment to a considerable extent.
Real estate is still very important right now, but to get back to normal.
Therefore, the wealth structure of residents will be transformed from physical assets to financial assets, and from single allocation to multiple allocations.
In addition, the transformation of the main body of financial management is also an important driving force for investors of asset management institutions.
With the changes in the market and the enrichment of products in personal finance, including the application of financial technology, more and more individual investors are gradually turning to institutional investors. Such a transformation is a huge market demand for asset management institutions.
The transformation of the business model is the main content of the high-quality development of the asset management industry.
Tu Guangshao suggested that the first is to transform from the seller's agency sales to the buyer's investment advisory.
Of course, including robo-advisors, as a whole, it is customer-centric, shifting from a seller's market to a buyer's market in the past, which is the core content of meeting market needs.
The second is to transform from homogeneous operation to differentiated operation.
The transformation to differentiation involves policy supervision and the positioning of the entire asset management institution. In this process, digital finance will provide very important support for the industry.
Looking forward to the future development of the asset management industry, Shang Fulin said that under the new regulations on asset management, major adjustments have taken place in product valuation methods and information disclosure.
In the next step, it is still necessary to further expand investment channels, build a product system that covers the entire life cycle and match different risk preferences, and explore the development of private equity funds, asset securitization, overseas investment, family trusts and other products and configuration portfolios.
Integrate the favorable resources of professional investment institutions such as commercial banks, securities companies, fund companies, and trust companies, and develop some cross-asset varieties and cross-market products to meet the increasingly prominent needs of investors for comprehensive financial services.
Wang Baohui