the fourth financial management subsidiary is selling
xingyin wealth management opens 1 billion self purchase
On April 2, xingyin financial announced that it would invest 1 billion yuan of its own funds in the financial products issued by the company this is the fourth financial subsidiary of self purchased financial products and also the bank financial subsidiary with the highest amount of self purchased products announced recently.
recently, the income of bank financial management market fluctuated, which made it difficult for many investors to accept the decline of net worth, the withdrawal of income and the increase of bank complaints, resulting in some panic
According to the data of Nancai CAITONG, as of April 2, among the 15703 financial products issued by financial companies, in addition to the 7160 products that did not announce the latest net value, 1127 had a net value less than 1, which was significantly reduced compared with nearly 2000 that broke the net peak in March.
In order to appease investors’ sentiment and show their determination to advance and retreat with investors, since March, many financial management companies have begun to buy financial products.
Previously, China Post Financial Management, Everbright financial management and Bank of South financial management have issued announcements of self purchase financial products, with self purchase amounts of 650 million yuan, 200 million yuan and 500 million yuan respectively.
In terms of the types of self purchased products, China post financial management plan chooses the opportunity to apply for the mixed and fixed income financial products under its management; Everbright wealth management’s own funds mainly invest in fixed income and cash assets, supplemented by other types of asset allocation. Its own funds have been invested in fixed income products such as sunshine Jinri Tianli and sunshine Jintian purchase, as well as cash management products such as Guangyin cash and sunshine Bi institutional profit;
It is reported that the self owned funds of xingyin financial management plan to invest in two types of products this time: one is a mixed financial product , including Xingrui all star, Xingrui preferred enterprise, Ruiying preferred balance series and ESG Xingdong series. Most of these products are invested through fof strategy or special account for outsourcing, and the bottom layer is invested in some stable growth and growth sectors.
the other is fixed income products with a broad customer base , including Yuedong series, Ruiying rising series, etc.
“We have selected some representative products managed by xingyin wealth management office to carry out the self owned investment of the wealth management company and practice the long-term investment concept with investors.” The person in charge of xingyin financial management said.
By the end of 2021, the scale of financial products managed by xingyin financial management had exceeded 1.78 trillion yuan, of which the scale of new products in line with the new regulations of asset management accounted for 94%.
Xingyin wealth management related person said, “As an asset management product with the widest customer coverage at present, the mainstream product form of financial products is still fixed income financial products. The investment strategy is mainly fixed income strategy and fixed income enhancement strategy. The fluctuation of the net value of its products is less than that of equity or partial equity mixed asset management products. Under the background of wide finance and wide credit, based on the in-depth research on bond issuers by the investment and research team of the banking department, bank financial subsidiaries can often pass through Through sufficient credit mining and flexible coupon strategy and duration strategy, we can obtain higher income. At the same time, the recent equity market correction has highlighted the allocation value. With the help of channel advantages, the bank’s financial management subsidiary selects the head fund company to carry out cooperation and layout equity products, which can continue to share the long-term dividends of the development of the capital market. “
bank financial management enters the era of true net worth
According to the 21st Century Business Herald reporter previously reported that in the past month, the number of bank financial products has increased significantly.
as of March 15, 2352 of all financial products in operation in recent six months had fallen below the net value, of which 1868 were issued in recent January, accounting for 79.42% of all net breaking products
Specifically, which kind of bank financial products fell more, and what are the reasons for the decline?
bank and wealth management companies have the largest number of net broken products and the largest proportion
According to the data, from the perspective of issuing institutions, 1708 financial products that have broken the net in recent months have been issued by financial companies, accounting for 11.68% of the net value financial products issued by financial companies; The rest are financial products issued by urban commercial banks, joint-stock banks, rural cooperative financial institutions, foreign banks and large state-owned commercial banks. The number of broken net products is 90, 38, 26, 4 and 2 respectively.
From the perspective of net worth financial products in the whole market, the number of net worth financial products issued by large state-owned banks, joint-stock banks, urban commercial banks, foreign-funded banks and rural cooperative financial institutions are 2748, 9929, 22879, 1853 and 4842 respectively, and the number of products issued by financial companies is 14629, accounting for 26.09% of the total.
There are three reasons for the large number and proportion of net breaking products of wealth management companies:
first, the number of financial products issued by financial companies has increased rapidly, and the degree of net worth is high .
On February 26, according to the annual report of Bank Of China Limited(601988) financial management market (2021) released by the banking financial management registration and custody center, in 2021, financial management companies issued 8596 new financial products, raising 440824 billion yuan, a year-on-year increase of 191.13%, accounting for 36.08% of the total amount raised in the whole market. By the end of 2021, all products of wealth management companies were net worth products.
second, urban commercial banks and rural commercial banks mainly focus on fixed income products, and some banks do not even have mixed products. Some products were established earlier, and accumulated profits in the early stage, leaving some room for the subsequent net worth correction
For example, there are only 157 equity products issued by Caicheng, of which there are only 157 fixed income products.
third, it is not ruled out that some products still have “false net worth”. Some old products of the parent bank package themselves as net worth products during the transformation, but in fact still operate in a non net worth way
Under the net breaking tide, the net breaking ratio of Hangyin, Huaxia, Agricultural Bank of China, Ping An and ningyin is less than 5%
from the perspective of the number of net breaking products of wealth management companies, the top five bank wealth management companies are ICBC wealth management, BOC wealth management, CCB wealth management, CMB wealth management and Xinyin wealth management, with 504, 149, 121, 71 and 64 products respectively
The number of net breaking products is related to the number of products issued to a certain extent. From the proportion of net breaking products in the total products, the proportion of net breaking products of the above five banks is 36.84%, 19.48%, 15.26%, 13.84% and 11.85% respectively.
Overall, the proportion of CMB financial management and Xinyin financial management is not high.
It is worth noting that under the background of the general decline in the net value of financial products, the proportion of net breaking products of some financial companies remains relatively low. The proportion of net breaking products of five financial products is less than 5%, which are 2.41% of Bank of Hangzhou financial management, 4.33% of Huaxia financial management, 4.39% of Agricultural Bank of China financial management, 4.73% of Ping An financial management and 4.81% of Bank of Nanjing financial management.
In addition, Bank of Qingdao financial management 6.06%, Bank of communications financial management 8.33% and Chongqing rural commercial financial management 9.68% have a net breaking ratio of less than 10%.
It should be noted that the total number of products of BlackRock CCB and Guangyin financial management is 2 and 1 respectively, both breaking the net, so the proportion is 100%. The two financial products of BlackRock CCB are equity products with risk grade of R5; The investment nature of one product of Guangyin wealth management is mixed, and the risk level is R4.
Due to the difference between the samples collected and the statistical caliber, there is a possibility of small error in the above data.
mixed class 1310, with negative earnings in recent March
more than half of R3 in broken net products
In terms of product types, the net breaking financial products are mainly fixed income products, with a total of 1147, accounting for 61.40% of the total. There are 692, 18 and 2 mixed, equity, commodity and financial derivatives respectively.
Fixed income products themselves account for a relatively high proportion, and the net breaking proportion is naturally high.
According to the data of China wealth management network, there are 32145 bank wealth management products on the market, including 27323 fixed income products, accounting for 85.00%; There are 230 equity classes and 2315 mixed classes.
Insiders said that the decline in the net value of fixed income products was mainly due to the adjustment of the bond market, but if they were held for a long time, most of them could still obtain coupon income.
It is worth noting that according to the data of nancaicaicaitong, 1310 hybrid products had negative earnings in recent March.
from the perspective of risk level, the risk level of broken net products is concentrated in R3, 1090, accounting for 58.35%. Then, from high to low, the proportion is R2, R4, R1 and R5, respectively 727, 27, 15 and 8, accounting for 38.92%, 1.45%, 0.80% and 0.43%
broken net cause disassembly
China Securities Co.Ltd(601066) Securities believes that there are four main reasons for the net breaking of financial products : first, the yield of bond investment is declining
In 2021, the proportion of bond assets in bank financial management was 68.39%. After a month of shock adjustment, the yield of the bond market is at a low level, both absolute yield and relative interest rate spread.
second, the equity market fluctuates greatly
At the end of the year, the equity ratio of fof and wealth management products accounted for 27.02% of the total assets of 2021 trillion, including the equity ratio of fof and wealth management products.
It is estimated that equity assets account for 0-3% of fixed income products; Among mixed products, equity assets account for 12% – 37%. Since the beginning of this year, the volatility of the equity market has increased, resulting in sharp fluctuations in the return on assets.
Third, the proportion of non-standard is lower
As the valuation method of bank financial management changes from cost method to market value method, non-standard assets can only be accounted by cost method. Bank financial management reduces the allocation of non-standard assets in the allocation of assets. At the end of 2021, the proportion of non-standard assets was only 8.4%, a decrease of 4.6% compared with the first half of the year, and the proportion of non-standard assets of big bank financial companies was only about 6%. Non standard assets, as assets with relatively high rate of return, have a decline in the efficiency of income stabilizer after the decline in the proportion.
fourth, structural reasons
Non standard assets have the effect of stabilizing the rate of return on investment and are not affected by the fluctuation of the stock and bond market. However, the proportion of non-standard assets is relatively small and can not offset the decline in the rate of return on stocks and bonds, which also leads to the increase in the number of net breaking financial products. Especially in the context of sharp fluctuations in the yields of bonds and equity assets, the function of non-standard asset stabilizer is declining.
According to Liao Zhiming, chief analyst of China Merchants Securities Co.Ltd(600999) banking industry, bank financial management presents the characteristics of public fund and enters the era of true net worth in the future, bank financial management should abandon the performance comparison benchmark of specific value or interval value, turn to the performance comparison benchmark system based on index, establish a perfect information disclosure mechanism, disclose information timely and correctly, and completely break the rigid cashing.
