The withdrawal frequency of performance compensation exceeds once every six months, the valuation of defaulted bonds of individual products is not adjusted in time, and the behavior monitoring of reverse trading of the same bonds of different products is not in place… Recently, Beijing Securities Bureau disclosed a number of problems of Dongxing Securities Corporation Limited(601198) in private asset management business at one go.
According to the 2021 semi annual report previously disclosed by Dongxing Securities Corporation Limited(601198) , by the end of June 2021, Dongxing Securities Corporation Limited(601198) asset management entrusted scale was 48.334 billion yuan, and the net income of asset management business was 75.4667 million yuan.
Dongxing Securities Corporation Limited(601198) received the supervision warning letter from the securities regulatory bureau
Various non-standard problems existing in the private asset management business of securities companies have not escaped the “vision” of supervision.
On February 15, the Beijing Securities Regulatory Bureau issued the decision on the regulatory measures of issuing warning letters to Dongxing Securities Corporation Limited(601198)
The decision said that after investigation, Dongxing Securities Corporation Limited(601198) has the following problems in the process of carrying out private asset management business: first, the implementation of the new asset management regulations is not in place, and the performance remuneration of individual products is withdrawn more than once every six months; Second, the investment management is not standardized, the valuation of defaulted bonds of individual products is not adjusted in time, the management of related party transactions is not perfect, the investment decision-making independence of investment managers is insufficient, and the behavior monitoring of reverse trading of the same bonds of different products is not in place; Third, there are deficiencies in the risk management and control system, there is no standard for the warehousing of bond Treasury, and there is no clear requirement to regularly evaluate the implementation effect of the valuation policies and procedures of the collective plan.
The Beijing Securities Bureau said that the above situation violated the provisions of paragraph 2 of Article 37 of the provisions on the operation and management of private asset management plans of securities and futures operating institutions and articles 43, 58, paragraph 2 of Article 60 and 64 of the measures for the administration of private asset management business of securities and futures operating institutions. According to Article 78 of the measures for the administration of private placement asset management business of securities and futures institutions, Beijing Securities Regulatory Bureau decided to take the regulatory measures of issuing warning letters for Dongxing Securities Corporation Limited(601198) . Dongxing Securities Corporation Limited(601198) we should effectively improve the compliance and risk control level of private asset management business and put an end to such matters.
in the first half of 2021, the scale of asset management was close to 50 billion yuan
In the past few years, affected by the new regulations on asset management, securities companies have been compressing the “channel” business, and the growth rate of asset management scale has been slow.
According to the 2021 semi annual report previously disclosed by Dongxing Securities Corporation Limited(601198) , the asset management business segment of Dongxing Securities Corporation Limited(601198) mainly includes asset management business of securities companies and public fund management business. In the first half of 2021, Dongxing Securities Corporation Limited(601198) realized an asset management business revenue of 100 million yuan, a year-on-year decrease of 56.49%, accounting for 3.90 percentage points of operating revenue.
In the first half of 2021, the overall scale of asset management business of securities companies further decreased, and the industry competition became more intense. According to the statistical data of the Securities Industry Association, as of June 30, 2021, the total principal of the entrusted funds of the securities industry was 10.45 trillion yuan, a year-on-year decrease of 11.67%; In the first half of 2021, the industry realized a net income of 14.468 billion yuan from asset management business, with a year-on-year increase of 1.24%.
During the reporting period, Dongxing Securities Corporation Limited(601198) asset management business made great efforts to overcome the policy restrictions on the successive termination of the operation of large collections, and made great efforts to “de channel” and improve the active management ability, so as to improve the structure of asset management business. In the first half of 2021, the company realized a net income of 75.4667 million yuan from asset management business; At the end of the reporting period, the entrusted scale of asset management was 48.334 billion yuan, including 25.203 billion yuan of asset securitization business, 11.981 billion yuan of collective asset management business and 11.15 billion yuan of single asset management business.
Dongxing Securities Corporation Limited(601198) said that in the future, the company’s asset management business will continue to unswervingly strengthen the ability of active investment management and risk control, create “investment bank asset management” and “brand wealth management asset management”, carry out corresponding product layout and design through large asset allocation, and realize fine management on the liability side based on customer characteristics and stratification, Cultivate various asset allocation and risk pricing capabilities in combination with different economic cycles, conduct product positioning differently, carefully build systematic asset management products, and continuously improve the brand’s market influence and industry status.
it is proposed to invest 500 million yuan to establish a wholly-owned management company
Although the group has the public fund license of Dongxing fund, Dongxing Securities Corporation Limited(601198) recently decided to establish a separate asset management company.
At the end of October last year, Dongxing Securities Corporation Limited(601198) issued a foreign investment announcement, which said that in order to grasp the current development opportunities of the asset management industry and support the needs of strategic development such as wealth management transformation, Dongxing Securities Corporation Limited(601198) plans to invest 500 million yuan to establish a wholly-owned asset management subsidiary to engage in securities asset management related businesses, so as to promote the better development of the company’s asset management business.
Dongxing Securities Corporation Limited(601198) said that the company’s asset management business through the establishment of asset management companies is in line with the guidance of regulators to encourage professional development and strengthen risk isolation, which is conducive to the company to grasp the development opportunities of the current asset management industry and support the development needs of the company’s wealth management transformation strategy. After its establishment, the asset management company will focus on customers, focus on “brand wealth management asset management” and “investment bank asset management”, strengthen fine management, establish characteristic business brands, improve the comprehensive financial service ability of asset management, and continuously improve the brand market influence and industry status, which plays a positive role in improving the overall profitability of the company.
Since then, Dongxing Securities Corporation Limited(601198) held the 16th meeting of the Fifth Board of directors on October 29, 2021, and agreed that the company should consider the risk control indicators of the proposed wholly-owned asset management subsidiary (hereinafter referred to as asset management company) Dongxing Securities Corporation Limited(601198) Asset Management Co., Ltd. (finally subject to the contents approved by the regulatory authority and registration authority, hereinafter referred to as Dongxing asset management) in accordance with the regulatory requirements, Provide it with a net capital guarantee commitment with an accumulated amount of no more than RMB 1 billion (inclusive). The commitment is valid from the date of establishment of the asset management company to the time when its capital status can continue to meet the requirements of the regulatory authority.
