Zheshang Bank announced recently that it plans to invest 2 billion yuan to set up a wholly-owned financing subsidiary with its registered place in Hangzhou. Under the guidance of new regulations on asset management and new regulations on financial management, as a stock bank with a fast start in financial management business, Zheshang Bank began to lay out financial management subsidiaries last year, standardize the development of financial management business, and actively layout the net value product system.
According to the annual report of 2019, the interbank financing funds of Zheshang Bank have been gradually reduced to zero. At the same time, relying on the platform service strategy, Zheshang Bank has made outstanding achievements in retail financial management. By the end of June this year, the balance of financial products of Zheshang Bank was 292.669 billion yuan, down 11.44% from the beginning of the year. Among them, the proportion of corporate and interbank customers funds further decreased, and the proportion of individual and institutional clients funds reached 91.14% and 8.86% respectively. In the first half of this year, the bank issued 378.75 billion yuan of financial products, up 6.49% year on year. Due to the positive decline of asset management and service fee of RMB 90 million in the first half of 2019.
Wang Yifeng told reporters that since the introduction of the management measures, banks have accelerated the pace of establishing financial subsidiaries. First, large banks; second, joint-stock banks. The attitude of the regulatory authorities is to be mature and approve one. According to the speed of financial rectification under the new asset management regulations, the regulatory authorities will link the approval and rectification speed of financial management subsidiaries to a certain extent, and issue new financial products through the established financial management subsidiaries to avoid secondary rectification.
Migration of stock products
With the approval and opening of financial subsidiaries, the transfer of banks stock financial products to financial subsidiaries has become the primary task of all Dali finance subsidiaries. With the promotion of migration, the number of products issued by financial subsidiaries is increasing.
After sorting out the data of China financial management network, the reporter of Securities Daily found that as of November 29, there were 18 bank financing subsidiaries in the whole market, and a total of 2572 bank financial products had been issued since its establishment. These products are net worth type and non breakeven floating income type, indicating that the products of financial management subsidiaries have realized the net value transformation.
According to the statistics of the third-party institutions, as of September 30, this year, 11 banks have successively started the transfer of parent bank products to financing subsidiaries, and all six state-owned holding banks have started the migration.
For example, China Merchants Bank announced recently that in order to ensure the stable, compliant and healthy development of financial management business, the fifth batch of transferred financial products will be transferred to CMB financial management on November 25; Industrial Bank also announced recently that due to the consideration of professional division of labor, the managers of some existing property products will be changed from industrial bank to xingyin financial management, and the related products issued by industrial bank will be transferred to CMB financial management on November 25 On November 27, it was officially transferred to xingyin financial management.
According to the regulatory requirements, the transition period of the new asset management regulations will end by the end of 2021, which means that the old products in stock will be converted into new products under net value management before the end of 2021. However, there are still some problems in product migration.
In this regard, Wang Yifeng said that in terms of product migration, the regulatory authorities require the financial management subsidiary not to make secondary rectification. Therefore, the products issued by financial subsidiaries should be products in line with the new rules of asset management. Then, there will be the following problems in the product migration: first, the non-standard products have a longer period of fund-raising, which is relatively difficult to raise. The second is the customers acceptance of the net value of new products. In the case of increasing market volatility, how to stabilize the net worth and prevent the net value from withdrawing substantially. The third is whether the original customer base can accept the old products after they are transferred to the new products conforming to the new regulations of asset management.
Dong ximiao further said that there are two main factors affecting the progress of product migration: one is the problem of understanding. Due to the extension of the transition period, the time elasticity of rectification and migration of stock products has increased. Due to different understanding of different banks, the arrangement of relocation work is also greatly different. Second, personnel issues. Some bank financial management subsidiaries and asset management departments are actually two brands and a set of personnel, and some bank financing subsidiaries and asset management departments are two sets of people. Compared with the two, the former will move faster.
Source of this article: Yang Qian, editor in charge of Securities Daily_ NF4425