There are many people in Cao Yings heart in Han Dynasty, but such blatant, or in an important position of senior executives and fund managers, the nature is too bad. A fund practitioner in Shenzhen said to TIME Finance and Economics.
An ironclad battalion of flowing soldiers. For the fund industry, frequent turnover is not a big deal. But this years high turnover frequency, coupled with the issue of the bank fund, really makes the industry feel panicked.
A group of data, eye-popping:
As of June 11 this year, how many fund managers have submitted resignation letters? 89. The figure for the whole year last year was 151. Within half a year, the number of fund managers who have left their jobs is far more than half that of last year.
Similarly, how many executive changes have taken place in less than half a year? The answer is 127 times, involving 64 fund companies, and 32 fund companies for handsome.
Among them, the situation of bank funds is particularly prominent.
Three of the 32 Shuai fund exchange companies have changed their chairmen and general managers, including ICBC Credit Suisse, Agricultural Bank Huili and Societe Generale Fund.
Whats more, the same banks Shanghai Banking Fund, including the general manager, the inspector-general, fund managers, etc., has set up a separate public fund privately under their working conditions. The incident caused an uproar in the fund circle.
But Guangzhou private-equity people told TIME Finance and Economics that the job-hopping season was unexpected. Financial reform is deepening and the market is becoming more and more open, but the market has been turbulent for more than a year. Whether these people are active or passive job-hopping, they are caused by many reasons.
You come and I come and go surges through the rivers and lakes.
127 executive changes, 89 fund managers resigned
Choice data show that as of June 11 this year, 89 fund managers of public funds had left their jobs. Among them, Guangzhou Development Fund and Hui Tianfu each lost five fund managers, Changxin Fund had four resignations, and UBS Credit Suisse also suffered three fund managersresignations. Among these outgoing fund managers, only one has a clear direction for the time being - Hammer of the former Yinhua Fund, who resigned from the Yinhua Fund in January this year, officially entered the China Finance Fund on May 10.
An employee of a fund company in South China told TIME Finance and Economics, This year, I have heard a lot of news about `so-and-so quit, `so-and-so quit, and I have seen a lot of announcements about the change of senior managers. Our companys staffing has changed a lot. Although the flow of personnel is quite normal, to be honest, this years phenomenon has made me a little nervous.
According to Times Financial Statistics, 64 companies have experienced executive changes since this year, including the resignation, new appointment, substitution and transfer of executive positions such as chairman, general manager, inspector-general, deputy general manager and chief information officer, totaling 127 times.
Some of the executives who have made these changes have only been dug up this year.
In February this year, Wu Linqian, a new deputy general manager of Hualong Securities, was appointed as the general manager of Xinjiang Branch of Hualong Securities. He only left office in January this year.
Yang Kai, the new general manager of Baoying Fund in March, was also the general manager of China Finance Fund in February.
The former general manager of Baoying Fund was Zhang Xiaochuan, who worked on the SFC for 10 years. In the second month of Baoying Funds new general manager, Yang Kai, Zhang Xiaochuan went to China Post Venture Fund as the executive vice president, and his position was downgraded to one level.
One month before Zhang Xiaochuan took office, China Post Venture Fund also left a deputy general manager. The deputy general manager later went to the National Finance Fund, and also served as deputy general manager.
Liu Wanfang, who has the same experience as Zhang Xiaochuan as the Securities Regulatory Commission, joined Zhuque Equity Investment Management Co., Ltd. in October 2017 and transferred to Zhuque Fund as general manager in February this year. However, he did not want to leave in a hurry in less than two months and jumped to Huatai Berry as deputy general manager.
Duan Haojing, the new inspector general of Sinda Bank of Australia on April 30, also has a regulatory background. He joined the Shenzhen Supervisory Bureau of the Securities Regulatory Commission in October 2000, and his former post has been promoted to director. This year, Sinda Australian Bank joined Shanghai.
Also in April, the Great Wall Fund was newly appointed Vice President Shenyang. In November 2017, Shenyang jumped from Boshi Fund to Zhejiang Business Fund. In less than one year, Shenyang quit from Zhejiang Business Fund in August 2018 and joined the Great Wall Fund in January this year.
In April, Minsheng Canadian Bank also appointed a new general manager for Li Kaigang. On March 25, Li Kaigang resigned as deputy general manager of Pengyang Fund on the grounds of personal reasons.
Hu Donghui, who was also the director and vice-chairman of CITICs CCI Securities Company last year, also became the chairman of China Kosovo in April this year.
A person from public offering to private offering in South China told TIME Finance and Economics that there are three main reasons why senior executives leave their jobs. Executives are responsible for their performance. If the size or performance does not increase or even decline, the pressure of executives is certainly high. Especially in the market environment where the market was bad last year and volatile in the first quarter of this year. As for the other two reasons, the private equity person said, On the one hand, there may be differences between executives and shareholders. On the other hand, there is the problem of salary. The war of robbing the people also exists in the fund industry. No one cant get along with money.
Banking fundsearning power is weakening
Falling into Financial Disintermediation and the Multiple Dilemma of BanksFinancial Management
Among the 127 top managerschanges, there are quite a few handsome moves such as Minsheng Canadian Bank and Zhongkovotu. 32 funds have changed their chairmen or general managers this year. Among them, the chairman and general manager of three banking fund companies, namely, ICBC Credit Suisse, Agricultural Bank Huili and Industrial Development Fund, have changed. In addition, the general managers of Bank of Communications Schroeder and Minsheng Bank of Canada have changed, and Shanghai Bank Fund is the new chairman.
Not only that, there are eight fund companies in the banking sector with the change of executives in this statistics.
Most of the changes in the personnel of the funds in the banking sector are within the system. For example, the former general manager of ICBC Credit Suisse took over the chairmanship, while the general manager was appointed by ICBC. AgBank Huili is also replaced by the former general manager, who is replaced by the former deputy general manager. The new chairman and general manager of Societe Generale came from Societe Generale in November last year.
But on the whole, the banking sector funds are not quiet this year.
This year, besides the new chairman, Shanghai Bank Fund has also been disturbed by the fact that seven employees have set up public funds privately. The major shareholder of Shanghai Bank Fund is Bank of Shanghai, which is the third batch of bank system funds established. It can only be regarded as a small company in the bank system.
Frequent changes in fund executives in the banking sector may also be related to weak performance.
The banking sector has been a major earner of public funds in recent years. But judging from the data for the first quarter of this year, the situation seems to have changed.
First is scale. According to Choice data, in the first quarter of this year, the total share of six of the 14 fund companies in the banking sector declined. Among them, ICBC Credit Suisses total share of the largest change, down 10.18%. In the first quarter of this year, only 37.31% of the fund companies declined in total share, and most of them are actually growing in size.
Look at the profit rankings of fund companies.
In the first quarter of 2018, six of the top 10 profit companies were bank funds, namely, Jiancheng Fund, ICBC Credit Suisse, Bank of China Fund, Societe Generale Fund, Bank of Communications Schroder and China Merchants Fund. In the first quarter of this year, among the top 10 companies, the banking sector suffered a whole army collapse. UBS Credit Suisse ranked 12th, and the total number of CITIC funds ranked 2nd in the first quarter of last year dropped sharply to 22th this year.
The above-mentioned South China private equity analysts say that the weakness of banking sector funds may be related to the trend of financial disintermediation brought about by the improvement of market-oriented level and the gradual relaxation of financial supervision in recent years.
The so-called financial disintermediation means that in the case of financial control, the supply of funds bypasses the commercial bank system and directly transfers to the demanders and financiers to complete the extracorporeal circulation of funds. With the acceleration of the process of economic financialization and financial marketization, the important position of the main financial intermediaries of commercial banks has declined relatively. The proportion of savings assets in social financial assets has continued to decline, and the resulting transformation of social financing methods from indirect financing to direct and indirect financing has taken place.
That is to say, investorsfinancial management concept is strengthened, savings is no longer the main way of financial management, and investment is not necessarily through the bank, you can directly find the direct suppliers of related products, such as fund companies. Especially after the emergence of Internet finance, disintermediation phenomenon is more obvious.
Therefore, the original bank funds are more strictly regulated than other fund companies, and they should be subject to the dual supervision of the SFC and the BIRC at the same time. The mechanism is not so flexible. Now even the biggest bank background advantage has been weakened. Said the private-equity person.
Not only that, a working member of a bank fund also told TIME Finance and Economics, I used to feel that I had a bank background and had no worries about channels. But now there are also subsidiaries of bank financing, and the connection with banks must be closer. In this way, how to differentiate between the subsidiary company of bank financing and the fund of bank department, whether the subsidiary company of bank financing will seize part of the resources, and so on, are all questions.
Banking finance subsidiaries are coming in a raging fashion. According to public information statistics, up to now, 31 banks have disclosed plans to establish financial subsidiaries, including 6 state-owned big banks, 9 stock banks, 14 city commercial banks and 2 agricultural commercial banks. The financial subsidiaries of eight banks have been approved for construction, among which the financial subsidiaries of ICBC and CCB have opened.
Looking at ICBC alone, its finance subsidiary, ICBC Finance, held a conference on innovative products in Beijing on June 6, releasing six new products. At the same time, it also revealed that ICBC meets the requirements of the new regulations and products have exceeded 370 billion yuan. In this way, the future market size of bank financial subsidiaries is larger than that of bank funds.
Yang Delong, former executive general manager of Open Source in Haihai, said in February this year that the establishment of the subsidiary company of bank financing will bring more incremental funds to the market, and will also increase competition in the management industry, which will pose a new challenge for public funds.
ShangBan executives find horses on horseback
Running private is no longer the best choice
In April this year, a public information on the official website of the SFC showed that the application materials for the establishment of a new public institution named Jingze Fund Management Co., Ltd. were accepted by the SFC. The company is sponsored by nine natural persons, namely Li Yongfei, Wang Suwen, Luan Luan Luan Yan, Zheng Qingli, Zhao Lanfang, Yang Kai, Ni Kan, Shi Zhensheng and Tianbo. Later, the media learned that seven of the nine natural persons were employees of Shanghai Banking Fund, and their positions were not low, including general manager, inspector general, fund manager, subsidiary head, financial director, etc. Up to now, the Shanghai Bank Fund has not responded to this matter.
But before leaving the job, people have already made plans, which has caused quite a stir in the social media. Many people came forward to accuse ShangBan Fund of lack of professional ethics. In addition, whether such acts violate the rules has been controversial.
Definitely not advocated, but there seems to be no clear regulation by regulators to prohibit such acts. And there are precedents before, so these people have no scruples. The above-mentioned Shenzhen fund practitioners and the era of Finance and economics.
The precedent mentioned by the practitioner refers to Chen Guangming, the former chairman of Oriental Securities Asset Management Limited, who applied for the establishment of a new public fund during his tenure. According to the data of the approval form for the establishment of the fund management company of the Securities Regulatory Commission, Ruiyuan Fund submitted the application materials for the establishment of public offering in July 2017 and was accepted by the Securities Regulatory Commission in August. Chen Guangming resigned as chairman of Dongzheng Securities Management only in March 2018, the second year, on the grounds of personal reasons.
It is worth noting that unlike the previous years, the attraction of private placement has been greatly weakened in recent years. The Ruiyuan Fund set up by Chen Guangming is a public fund. Similarly, several executives of Shanghai Banking Fund proposed to set up a public fund.
In this regard, the aforementioned South China private equity personage told TIME Finance and Economics, After 2014, the conditions for the establishment of public offerings have been liberalized, and natural persons can also set up public funds, while the supervision of private offerings has been strengthened. Thats one of the reasons.
In December 2013, in the State Councils Approval of Issues Concerning Fund Management Companies for Public Funds, the conditions for the main shareholders of public funds were clearly stipulated. Among them, the main shareholders are natural persons, and the personal financial assets are not less than 30 million yuan. If they have worked in the asset management industry at home and abroad for more than 10 years, a public fund may be established. In June 2014, the SFC issued Opinions on Vigorously Promoting Innovation and Development of the Securities Investment Fund Industry, which clearly encouraged all eligible entities to apply for public fund management licences to support professional shareholding.
In April 2016, the first natural person-controlled Huian fund was established. Since then, it has become a trend for natural persons to set up public funds, among which professionals in the public offering industry have become the backbone. By the end of last year, 16 public funds controlled by natural persons had been established and approved, and 12 of the actual controllers behind these funds had worked in public funds.
In addition, the aforementioned South China private investors said, Compared with public funds, the pressure to do private equity is very great, the market has shocked too much in recent years, coupled with tightening supervision, many private equity can not survive. The salary of private offering is not necessarily higher than that of public offering. Not everyone earns tens of millions of dollars a year, as is said outside, and there are a lot of people who get twelve thousand dollars a month. In addition, fund managers, including Wang Yawei, who have moved to private placement in recent years, are far less successful in private placement than in public placement.
So, if the senior managers or fund managers of the fund companies want to do it alone, private equity is no longer the best choice.
Source: Times Financial Responsibility Editor: Ren Hui_NBJ9607