China Securities News · China Securities Taurus reporter learned on January 10 that some bank financial management companies have specially set up "cash management department", which is the exclusive department of cash management products to make investment decisions and management separately, and the department level is equal to the fixed income department.
Cash management financial products are similar to monetary funds. They have the advantages of high liquidity, low risk and stable income. They are the ballast of investors' financial asset allocation. According to the data of banking financial management registration and custody center, as of March 2021, the scale of such products exceeded 7 trillion yuan.
The industry has different views on the establishment of a separate cash management department, and the product strategy is also different. A financial subsidiary of a joint-stock bank told reporters that due to the importance of cash management financial products, the company has no intention of establishing a separate department for the time being.
set up a cash management department
According to the information released by xingyin financial management recently, on December 2, 2021, the company added a cash management department and a multi asset investment department, and the organizational structure was further optimized. It is understood that this is mainly to improve the professional investment and research level of subdivided fields and the R & D ability of characteristic products.
The reporter learned from a number of financial management companies that cash management products are generally managed by a franchise team under the fixed income department. It is rare to set up a separate department for cash management business in bank financial companies.
Public information shows that xingyin's financial management has strong "gold absorption" ability. By October 2021, the scale of xingyin's financial management products had exceeded 1.8 trillion yuan, a record high, ranking the second in the financial management subsidiary of the joint-stock bank and the fifth in the whole market. In the first half of 2021, among the joint-stock financial companies, xingyin financial net profit ranked first, with 1.983 billion yuan.
However, some companies have set up a separate cash management department earlier. The reporter learned from the industry that a market head financial subsidiary separated the cash management department from the fixed income department in the first half of 2021. However, the main purpose is to facilitate personnel and business management and make investment decisions independently.
rectification pressure still exists
Cash management products refer to the financial products of commercial banks or financial companies that only invest in money market instruments and can handle the subscription and redemption of product shares every trading day. The product name usually uses words such as "currency", "cash" and "flow".
According to the first quarter report of China's financial management market in 2021 released by the banking financial management registration and custody center, by the end of March 2021, the scale of the bank financial management market had reached 25.03 trillion yuan, of which the scale of cash management products was 7.34 trillion yuan, accounting for nearly 30%.
On May 27, 2021, the China Banking and Insurance Regulatory Commission and the people's Bank of China jointly issued the notice on regulating the management of cash management financial products, specifying that the transition period is from the date of implementation of the notice to the end of 2022. The rectification of cash management products began, and their advantages over the monetary fund began to decline.
Industry insiders said that due to the large scale of such products, there was rectification pressure in the industry in 2022. The proportion of such products of its China owned bank financial subsidiary was higher, and the rectification pressure was also greater. The main difficulty of rectification lies in balancing regulatory requirements and operating performance. Once the pressure drops rapidly, some customers may turn to monetary funds, "fixed income +" funds and other products, which will affect the company's management scale and management fee income.
Some banks have begun to implement adjustment measures: first, change the redemption arrival time of cash management financial products from "t + 0" to "t + 1", and adjust the valuation method; The second is to successively launch "cash like financial management" products with relatively high liquidity as substitutes.
(source: China Securities Journal)
