According to the latest data, the total asset management scale of public and private funds exceeded 44 trillion yuan, a record high. Among them, the scale of public funds exceeded 25 trillion yuan, ranking fourth in the world; The scale of private equity funds exceeds 19 trillion yuan, and the number of products established this year has exceeded 30000.
China’s fund industry is ushering in the best era. In the structural market over the past three years, China’s fund industry has developed rapidly. According to the latest data, the total asset management scale of public and private funds exceeded 44 trillion yuan, a record high. Among them, the scale of public funds exceeded 25 trillion yuan, ranking fourth in the world; The scale of private equity funds exceeds 19 trillion yuan, and the number of products established this year has exceeded 30000.
the scale of public and private placement has exceeded 44 trillion yuan
According to the data, by the end of November 2021, the asset management scale of public funds had reached 25.32 trillion yuan, a net increase of 5.43 trillion yuan compared with 19.89 trillion yuan at the end of last year, once again reaching a record high. At the end of 2019, this figure was 14.8 trillion yuan. This also means that in less than two years, the asset management scale of public funds has increased by more than 10 trillion yuan.
From the global ranking, China’s public funds have also stepped onto a new level. According to the data of American Association of investment companies (ICI), by the end of the third quarter of 2021, the scale of public funds in China was the fourth in the world after the United States, Ireland and Luxembourg, and ranked the first in the Asia Pacific region.
With the explosive growth of public funds, the development of private placement is no less impressive. 2021 is the year with the most rapid development of private placement. By the end of November, the overall scale had reached 19.73 trillion yuan, a significant increase of 3.76 trillion yuan over the end of last year. From the perspective of private equity fund companies, there are more than 100 private equity funds with an asset management scale of more than 10 billion yuan. From the number of private equity fund products filed, more than 32000 have been filed this year, breaking through 30000 in a single year.
According to the latest data of China Securities Investment Fund Industry Association, the total asset management scale of public and private funds has exceeded 44 trillion yuan.
In the view of fan Yonghong, a veteran of the public fund industry, the key to the development and growth of public funds lies in performance. Statistics show that since the beginning of 2019, among more than 2800 partial equity hybrid funds established for more than three years, more than 1600 funds have doubled their net value, and nearly 500 funds have a total return of more than 200%. For investors, the profit-making effect of public funds is particularly eye-catching among various types of assets.
Correspondingly, in the significant structural market in the past few years, only some high-quality companies’ share prices repeatedly hit new highs. Many investors found that it was better to buy funds than to speculate in stocks, so they took advantage of funds to enter the market.
innovation fund products emerge one after another
In the fund industry in 2021, not only the management scale increased rapidly, but also various innovative products were launched, including public REITs, interbank certificate of deposit index fund, fof-lof fund, etc. As an instrumental product, index funds have also ushered in a concentrated outbreak.
In May this year, the first batch of publicly raised REITs was officially put on sale. The first batch of products attracted many institutional investors such as banks, insurance and private placement, and the placement proportion of many products was less than 10%. In November, the second batch of 2 public offering REITs products were issued, which also attracted many investors. In the view of insiders, as an alternative investment tool, public REITs have the characteristics of both shares and bonds, filling the gap in China’s capital market and providing investors with more choices.
In order to comply with the trend of net worth management in the asset management industry, interbank certificate of deposit index funds with both liquidity and security are favored by fund companies. Due to the large scale of the current monetary fund, the amortized cost method adopted by it has the hidden danger of mismatch between income and risk time, and the interbank certificate of deposit fund is valued by the market value method, which can better comply with the net value management reform of the cash management market. Therefore, fund companies have launched interbank certificate of deposit index fund products.
It is worth noting that the index fund, as an instrumental product, has also ushered in a big outbreak. With the rapid growth of the number of listed companies, it is more difficult to select stocks. Index funds are welcomed by more investors, and fund companies also take advantage of the situation to issue new products. The latest statistics show that among the more than 9000 public fund products in the whole market, there are more than 1200 index funds, with a total asset management scale of about 1.46 trillion yuan. Although the absolute value has been considerable, it still accounts for a small proportion compared with the public funds with a total scale of more than 25 trillion yuan. According to the data of the American Association of investment companies, American equity index funds account for as much as 30% of the scale of equity funds. In contrast, China’s index funds still have broad development space.
Since this year, the innovative products of the fund industry include MSCI China A50 interconnection ETF, Beijing stock exchange theme fund, fof-lof fund, etc. Among them, fof-lof fund has the advantages of both fof and lof products. It can not only provide fund allocation schemes for holders, but also be listed and traded like lof, bringing a better liquidity experience.
Pentium forward fund leads the era of large asset management
In many ways, China’s fund industry is ushering in the best era.
From the perspective of macroeconomic policies, in the past few years, the decline of risk-free yield and the breaking of just exchange have greatly reduced the yield of bank financial management and trust products; The state’s regulation of illegal Internet finance has eliminated many P2P platforms; The policy of “housing without speculation” has been continuously strengthened, which makes the investment attribute of real estate tend to weaken, and residents’ wealth has begun to transfer from the real estate market to the capital market, which has ushered in a source of fresh water.
From the perspective of the development environment of the capital market, the regulators have issued a series of fundamental policies, and the development environment of the capital market has undergone significant changes. A-Shares are interconnected with the international market, followed by the evolution of investment philosophy. A series of measures such as fully implementing the stock issuance registration system, strengthening the information disclosure system of listed companies and promoting the reform of delisting system have made the past popular bad behaviors such as speculation in small, new and news abandoned by the mainstream market. The concept of value investment has brought development opportunities to the fund industry with strong research force.
From the development trend of the asset management industry, the transition period of the new asset management regulations will end at the end of this year. With the formal implementation of the new asset management regulations next year, the asset management industry will usher in a new stage of development. The public and private equity fund industry can provide highly net worth and standardized products. Relying on its own investment management advantages, it will lead the future development wave of the asset management industry. In particular, public funds, with the advantages of openness and transparency, mandatory disclosure, independent custody and decentralized investment, will become the best choice for ordinary investors to maintain and increase their wealth.
Specific to the public fund industry, the regulatory authorities have also made new policies one after another. Optimizing the public offering license system, promoting the pilot of fund investment advisers, strengthening the requirements for fund sales and increasing the innovation of fund varieties will help the public offering fund industry to achieve stability and development.
The sea is wide and the fish jump. The new voyage of China’s asset management industry has been opened. From the development of the past few years, the fund has become the fastest-growing segment industry, and will continue to lead the era of large asset management in the future.
(Shanghai Securities News)
