Public fund license still has strong attraction. From the perspective of the five companies that submitted materials recently, their backgrounds are quite different: Huiyi fund, a personal department fund company initiated by Lin Peng, two foreign-funded institutions, fanda fund and LianBo fund, PICC fund with insurance asset management background, and Huaxi fund with brokerage background.
The sponsor of the PICC fund, the PICC assets, is not a public new army. In fact, its public offering business qualification was approved in January 2017. On November 20, the core personage of the preparatory group of the PICC fund told the times weekly that PICC assets had been operated under the business division system of insurance companies, with more insurance asset management culture. However, this preparatory fund company meant that it would operate in a market-oriented way.
So far, there are 8 public funds with insurance background in the market, including Ping An fund, Guoshou security, Guolian an, Taiping fund, Hongde fund, Huatai Baoxing fund, Taikang asset and PICC asset. With the abandonment of the business division system of PICC assets, only Taikang assets in 8 companies still adopt the business division system.
As for Huaxi Securities, the process of applying for a public offering license is full of twists and turns. As early as 2012, the company tried to set up Huaxi Qunyi fund, in which Huaxi Securities planned to hold 51% shares and Taiwan based securities company Qunyi securities planned to hold 49%. However, after implementing the first written feedback, no progress has been made.
In the first half of 2018, Huaxi Securities (002926. SZ) announced that it planned to invest no more than 300 million yuan to set up asset management companies, and applied to CSRC for public fund license with Huaxi Securities Asset Management Company as the main body. However, in November 2019, Huaxi Securities issued another announcement, saying that the board of directors agreed to withdraw the application for the establishment of the asset management company and retain the asset management headquarters to carry out the existing business. At the same time, it will choose the opportunity to apply for the establishment of a public fund company.
According to the semi annual report of Huaxi Securities in 2020, the asset management business income in the first half of the year was 71 million yuan, an increase of 54.11% over the same period of last year. By the end of the first half of the year, the parent companys asset management business scale totaled 143.345 billion yuan, an increase of 11% compared with the end of 2019. On November 20, a deep-seated person in the industry analyzed to the times weekly reporter that, judging from the scale and income of the asset management business of Western China Securities, its active management business may account for a relatively low proportion, and the road of public offering is still a long way to go.
Foreign giants knock on the door
On April 1, this year, China Securities Regulatory Commission announced that the restrictions on the proportion of foreign shares held by securities companies and public funds would be cancelled. BlackRock and lobrama submitted materials for the establishment of public funds on the same day. On August 21, BlackRock was approved as the first wholly foreign-owned fund company to obtain a license.
Lubomiers rhythm is a little slower. According to the information on the CSRCs official website, the current progress is the same as that of fidelity, which submitted its application on May 19, but the Minsheng fund that submitted the application on June 18 has caught up.
According to public information, the two foreign institutions applying for public offering license recently are both American companies. Among them, fanda group took the route of boutique fund and was founded in 1955. As of September 30, 2020, the total global asset management scale of fanda is more than US $61.2 billion, and it is one of the top ten ETF providers in the world.
A number of public fund raisers told the times weekly that the intensive entry of foreign capital may make the style of domestic public funds more diversified. Generally speaking, the label of domestic and foreign capital is not important. Whether the domestic public offering industry can achieve success, the role of the team is more important.
Asset management intensive licensing application
In addition to initiating the establishment of fund companies, the pace of application for public offering qualification of various asset management institutions in the second half of the year is accelerating. According to the official website of the CSRC, since August, Guotai Junan asset management, Huajin securities and Yongan Guofu asset management have successively submitted applications for public offering business qualification.
According to the official website of CFA, as of the end of the third quarter of 2020, the average monthly scale of assets under private active management of Guotai Junan asset management was 358.639 billion yuan, second only to CITIC Securities (600030. SH) in the industry.
Compared with Guotai Junan, Huajin securities has relatively weak deposit in asset management business. In 2019, Huajin securities achieved a net income of 30.89 million yuan from asset management business fees, and issued 14 active management products, with a total scale of 5.467 billion yuan.
Yongan Guofu asset management applied for a public offering license is special. As a private equity company, its shareholders are Hangzhou Xiaoniu investment, Yongan futures and Hangzhou Xiaozhen equity investment, respectively holding 63.658%, 31.354% and 4.988%. In addition to Yongan futures, the other two major shareholders are employee stock holding platform. In the past, private to public was generally adopted to initiate the establishment of new fund companies, rather than applying for public offering business qualification. If Yongan Guofu asset management is approved successfully, it may increase the existence sense of public offering of futures companies. Yongan futures mid-2020 annual report shows that the operating income of Yongan Guofu asset management in the first half of the year is 1.637 billion yuan, and the net profit is 242 million yuan. On November 20, Liu Yiqian, general manager of Shanghai Securities innovation and development headquarters, told time weekly that the popularity of public offering license mainly lies in the fact that although the head effect is prominent, it does not affect the attraction of the industry. There are still opportunities for new entrants, and there are many outstanding new fund companies established in recent years. Source: Ren Hui, editor in charge of times weekly_ NBJ9607
Yongan Guofu asset management applied for a public offering license is special. As a private equity company, its shareholders are Hangzhou Xiaoniu investment, Yongan futures and Hangzhou Xiaozhen equity investment, respectively holding 63.658%, 31.354% and 4.988%. In addition to Yongan futures, the other two major shareholders are employee stock holding platform. In the past, private to public was generally adopted to initiate the establishment of new fund companies, rather than applying for public offering business qualification. If Yongan Guofu asset management is approved successfully, it may increase the existence sense of public offering of futures companies. Yongan futures mid-2020 annual report shows that the operating income of Yongan Guofu asset management in the first half of the year is 1.637 billion yuan, and the net profit is 242 million yuan.