When the market is poor, the practice of self purchase of products by fund companies has also been followed by bank financial management companies recently, and the hand is bigger. Since late March this year, Everbright financial started the “first shot of self purchase” of financial companies, four financial companies have announced to buy their products out of their own pocket within two weeks, with an estimated total of about 1.85 billion yuan.
One recently announced is China Merchants Bank financial management. The company said on April 2 that it would invest 500 million yuan of its own funds to subscribe / subscribe for its financial products. As of March 25, the total amount of the company’s senior management and department heads holding the company’s financial products had exceeded their total salary last year.
Based on the announcements of several financial management companies and the analysis of insiders, the background of self purchased products of financial management companies is the recent double killing of stocks and bonds, and a large area of net value withdrawal of financial products. The purpose of self purchased products is to enhance investor confidence and the final income of the products.
within two weeks, four wealth management companies have announced to buy products out of their own pocket
In April 2nd, the official account of the Bank of China was issued in a cartoon long map, which shows that “we believe that the national economy will be better in the long run. We will invest about 500 million yuan in our own funds to subscribe for the financial products of our company. The above products are covered by the daily rolling, Fenghe, sunflower, Jinding, FOF and equity products, of which R3 and above products account for more than 70%.”
The long chart also shows that as of March 25 this year, the total amount of corporate financial products owned by the senior management and heads of departments of CMB financial management has exceeded their total salary last year.
Previously, from March 23 to March 26, Everbright financial management, Bank of China financial management and China Post Financial Management successively announced that they invested about 200 million yuan, 500 million yuan and 650 million yuan of their own funds in the company’s financial products. So far, the total self purchase amount of the four companies will reach about 1.85 billion yuan.
Compared with the self purchase of funds, bank financial management companies are more generous. Compared with the recent announcement of the fund company, for example, on March 16, Ruiyuan Fund announced that it would use its own funds to purchase its funds again for no less than 150 million yuan; On March 17, e fund announced that it had recently invested 200 million yuan of its own funds in its equity funds and fof funds; Bank of communications Schroeder fund and Tianhong fund also announced to purchase their public offering products with an inherent capital of 50 million yuan and 100 million yuan respectively.
self purchase aims to boost market confidence and appease investors by reducing product rates
Cui Shengyue, a researcher at Puyi standards, said that the main reason for the recent large-scale net worth withdrawal was the recent sharp adjustment of the stock and bond markets. Public information shows that under the influence of geographical conflicts and the Federal Reserve’s interest rate hike, A-Shares have continued to fall since late February, once falling below 3100 points, and rebounded after the financial Commission released a positive signal on March 16. However, the Shanghai index fell 6.07% and the gem index fell 7.7% in the whole March.
On April 2, the shell finance reporter of the Beijing News learned from the search of “China wealth management network”, a financial product information query website designated by the China Banking and Insurance Regulatory Commission, that at present, there are about 8400 existing financial products whose registered subject is a financial subsidiary, and there are still about 1200 products with a net value of less than 1, accounting for 14.3%. Among the net breaking products, the risk level is mostly above level 3 (medium), and the investment types are mostly mixed, including assets such as bonds or stocks.
To boost the confidence of many financial companies. For example, China Post Financial said in the announcement that it paid out of its own pocket because it was “based on confidence in the long-term, healthy and stable development of China’s capital market”; Zhang Xuyang, chairman of Everbright wealth management, responded to the decision of self purchase at the 2021 annual performance meeting, saying that the first is the confidence in China’s financial market, the second is the confidence in Everbright wealth management’s investment and research ability, and the third is to convey confidence, hoping that investors can tolerate short-term fluctuations after the net worth transformation of wealth management products, so as to obtain a longer-term return on investment.
Cui Shengyue said that at present, the market has stabilized and rebounded, and the net value of financial products will recover to a certain extent. Other subsequent financial subsidiaries do not rule out the possibility of continuing to follow up.
In addition to self purchase, bank financial management companies have recently comforted investors by adjusting product structure, reducing product rates and increasing investor education. For example, in late February, Xinyin wealth management announced that it had decided to give phased preferential treatment to the fixed management fee, sales service fee and custody fee of Xinyin wealth management’s full profit image, solid income and stable annual opening No. 8 wealth management product China Merchants Bank Co.Ltd(600036) executive vice president Wang Liang said at the performance meeting that CMB financial management is studying measures to increase the investment in fixed income products such as bonds in combination with the low-risk allocation of bank customers; Allocate equity products, increase investment and research capacity, and extend the closure period of financial products.
many wealth management companies have a management scale of more than one trillion, and the most profitable is China Merchants Bank Wealth Management
From the recent financial reports of 2021 disclosed by banks, at present, financial companies have generally taken over the important task of operating financial products from the parent bank.
For example, by the end of 2021, the balance of ICBC’s financial products was 2.59 trillion yuan, and the balance of ICBC’s financial products was 2.02 trillion yuan, an increase of 951731 billion yuan over the end of the previous year, accounting for 77.99% of the bank’s financial scale; Among the 2.07 trillion financial balance of ABC, the financial balance of ABC was 18200 yuan, accounting for 87.9% China Everbright Bank Company Limited Co.Ltd(601818) consolidated non breakeven financial products have a balance of 1.07 trillion yuan, which is the same as the total scale of Everbright financial management assets.
There are also many other financial management companies that managed financial products with a balance of more than trillion yuan at the end of last year. For example, the balance of CMB’s financial management products is 2.78 trillion yuan, the scale of CCB’s financial products is 2.19 trillion yuan, and the scale of BOC’s financial entrusted management has exceeded 1.71 trillion yuan.
In terms of profitability, among the 14 financial management companies with comparable data, the most profitable is CMB financial management. In 2021, the net profit of CMB financial management reached 3.203 billion yuan; Last year’s net profit exceeded 20 trillion, including xingyin financial management, BOC financial management and CCB financial management. Among the wealth management companies that announced self purchase, Everbright wealth management achieved a net profit of 1.586 billion yuan last year, China Post wealth management achieved a net profit of 1.225 billion yuan last year, and the parent Bank Of Nanjing Co.Ltd(601009) of Bank of China wealth management has not disclosed the financial report of 2021.
