Support the docking of various long-term funds such as public financing
People close to the regulatory authorities told the Chinese reporters of securities companies that in order to implement the relevant requirements of comprehensively deepening the reform of the capital market, the CSRC will vigorously support fund managers to develop public funds in accordance with the law, and effectively connect various long-term funds such as bank public financing, pension and insurance. This is also a response to the markets long-standing call.
According to a public fund manager of a bank, the introduction of medium and long-term funds will have two main impacts on the capital market. First of all, the investment style represented by insurance funds is more stable, and its strategic asset allocation strategy has a longer target period, which helps to guide the capital market to be more rational, long-term and valuable, and is expected to become the ballast stone of market stability. At the same time, the entry of medium and long-term funds into the market will further enrich the capital source of the market and activate the vitality of the capital market to a greater extent.
From the perspective of wealth effect, pension and other long-term funds entering the market is a win-win choice. Judging from the recent intensive disclosure of the second quarter report, the earning ability of public funds is commendable. According to the analysis of Hongtai wealth research department, compared with the performance of the main industry indexes of a shares, equity funds outperformed the majority of Shenyi class industries in the first half of the year, especially the median income of ordinary equity funds reached 24%, second only to the two hot industries of medicine, biology and leisure services, and the same as that of electronic industry. It shows that active management public funds can better grasp the market trend in the market with significant differentiation in the industry.
Explore the establishment of innovation protection mechanism
According to the situation of product innovation, it is necessary to explore and establish an innovation protection mechanism, and set up an innovation pilot protection period of more than 6 months according to the situation. The regulatory department of securities and fund institutions will summarize and evaluate regularly, issue relevant product operation guidelines in a timely manner, and promote the pilot mature products into conventional products and promote them in the industry.
In recent years, in order to promote the healthy development of the public fund industry, on the one hand, the supervision has simplified administration and decentralization, on the other hand, it has insisted on innovation. In October 2019, China Securities Regulatory Commission (CSRC) decided to carry out the reform and optimization of the registration mechanism of mutual fund products, and apply the differentiated registration process to the conventional products declared by different fund managers, which can be divided into two categories: rapid registration and conventional registration.
Some market participants told the Chinese reporters of securities companies that through classified supervision, quick registration will be implemented for managers who are compliant and honest, create long-term stable investment returns for investors, and have good risk control. On the basis of strict risk control, the efficiency of fund registration has been improved in a targeted way, which not only conforms to the principle of macro prudence, but also is conducive to product innovation, so that good products can go to the market more quickly. Through such guidance and demonstration, more public funds are encouraged to innovate on the basis of compliance.
According to CICC research statistics, the total assets of public funds rose from 17.8 trillion at the end of the first quarter to 17.9 trillion at the end of the second quarter. Among them, the scale of equity assets increased from 2.7 trillion yuan in the first quarter to 3.4 trillion yuan, an increase of 25%. The proportion of equity assets in all fund assets increased from 15% in the first quarter to 19%. According to choice data, as of July 22, 158 equity fund managers had managed a total fund asset size of more than 10 billion yuan.
People close to the regulators said that the CSRC will strengthen the supervision of innovative products, ensure that the in-process monitoring, post supervision and inspection are deployed and implemented together with the pilot projects, compact the main responsibility of institutions, guide the industry to grasp the relationship between promoting innovation and strengthening risk management, and do a good job in risk control and investor protection.
The registration period of conventional bond fund products has been greatly reduced
In order to thoroughly implement the requirements of release, management and service, deepen the supply side structural reform of the securities and fund industry, and better meet the needs of the industry development, the CSRC has further optimized the registration mechanism of public offering fund products.
Chinese reporters of securities companies have learned that on the basis of the current classified registration mechanism for conventional products of public offering funds, the registration mechanism of conventional bond fund products will be further optimized from August 1, 2020, so as to improve the registration efficiency. The registration period of conventional bond fund products included in the rapid registration mechanism is shortened from 30 days in principle to 20 days. For conventional bond fund products not included in the rapid registration mechanism, the registration period is shortened from 75 days in principle to 45 days. It has greatly improved the registration efficiency of public fund products.
Promoting the reform and optimization of the registration mechanism of public fund products is an important measure for the CSRC to vigorously promote the simplification of administration and decentralization. As early as September 9-10 last year, the China Securities Regulatory Commission (CSRC) held a forum on comprehensively deepening the reform of the capital market in Beijing, and put forward 12 key tasks for comprehensively deepening the reform of the capital market at present and in the future. One of the important contents is to vigorously promote the simplification of administration and decentralization of powers.
Source of this article: Ren Hui, editor in charge of securities companies in China_ NBJ9607