In fact, Huaxi Securities intended to enter the field of public funds earlier. According to the announcement form of examination and approval of establishment application of fund management company issued by CSRC in April 2012, Huaxi Securities intends to apply for the establishment of Huaxi Qunyi Fund Management Co., Ltd., which has been in the stage of soliciting opinions. The proposed shareholders are Huaxi Securities and Qunyi Securities Investment Trust Co., Ltd., with 51% and 49% respectively. And in the subsequent audit situation publicity, there is no figure of West China Qunyi Fund Management Co., Ltd.
The determination of Huaxi Securities to enter the field of public funds has not stopped. On April 27, 2018, Huaxi Securities issued a notice that the company will invest no more than 300 million yuan to establish a wholly-owned subsidiary Huaxi Securities Asset Management Company to undertake the companys original asset management business, and apply to the CSRC for a public fund license with Huaxi Securities Asset Management Co., Ltd. as the main body to carry out public fund business.
Coincidentally, the announcement on the acceptance and examination of administrative license applications of securities and fund operation institutions issued by the CSRC on November 29 shows that on November 25, Minmetals Securities Co., Ltd. applied to the CSRC for the qualification of public fund management business, of which the examination period was 20 working days.
Enrich asset management product line
According to the data released by China Securities Investment Fund Industry Association, as of the end of October 2019, there were 13 securities companies or asset management subsidiaries of securities companies, including Orient Securities, Huatai Securities, Zhongtai securities and so on, that had obtained the qualification of public fund management.
Compared with large-scale securities companies, small-scale securities companies are weaker in investment and research, so it is necessary to introduce war investment and jointly set up public funds. The application for public fund license by the asset management company shall be wholly owned. In addition, a northern securities trader said to the reporter of China Securities News that the purpose of engaging in public funds is to continuously expand the channels of funds. With the gradual promotion of the registration system, funds become more important for securities companies.
We have also drawn up the relevant work plan for the application of public offering qualification. A securities trader said that in order to further expand the coverage of the products, it is proposed to further expand the asset management products to low threshold public offering products, enrich the asset management product line and provide customers with all-round asset management services by obtaining the qualification of public offering fund management.
A securities trader who has obtained the public offering license said that after the deregulation of securities firms in 2014 applied for the public offering fund license, it largely made up for the short board of the original business form of securities firms asset management and injected new momentum into the development of securities asset management business. In the next step, the company will further optimize the product layout, highlight the characteristics of securities companies, and strive to create innovative products.
To undertake mass transformation products
In fact, the transformation of the large-scale products of securities companies is also an important reason for securities companies to apply for public offering licenses.
In order to maintain the competitive advantage and avoid the short board of business, the asset management of securities companies, especially the asset management of large securities companies, have applied for the qualification of public offering business management. Li Meng (pseudonym), a securities trader in South China, said that the approval of the public offering qualification not only helps to undertake the capital in the original large collection, so that the asset management scale of securities firms will not be reduced due to the transformation of large collection products, but also helps securities firms or their asset management companies to establish a product line of public offering management, so as to expand the target customer base from high net worth customers to ordinary customers Investor groups.
However, due to the limitation of one participation and one control, many large securities companies are unable to apply for public offering license. Li Meng said that at present, the acceptance speed of public offering license of securities companies slows down. Many securities companies are in the stage of continuous feedback and correction of materials after reporting public offering materials, and there is no clear timetable for obtaining license.
It is understood that at present, most of the large-scale securities companies with large aggregate products do not have public offering licenses.
The regulatory authorities encourage securities companies that have not obtained the qualification of public offering fund management to complete the standardization of the business of public offering asset management in advance by replacing the managers of large-scale collective products with the fund management companies that they hold or share in and changing their registration as public offering funds. But for some securities companies, it is difficult to reform in this way. In terms of interests, we are reluctant to hand over the hard-earned products to the fund companies that hold or share in them. Wang Min (pseudonym), head of the asset management department of a securities firm that has not obtained a public offering license, said it was not ruled out that some securities companies would make overall arrangements for the transfer within the system.
Source: editor in charge of China Securities News: Ren Hui, nbj9607