On April 26, 2022, the CSRC issued the opinions on accelerating the high-quality development of the public fund industry. Among them, relaxing the relevant provisions of the fund license is conducive to the expansion of the wealth business territory of the banking industry, expanding the bank’s wealth management ability and improving the scale of bank asset management, especially the large state-owned banks, China Merchants Bank, Shanghai Pudong Development Bank, Ningbo and other banks with good fund development. Second, encourage long-term assessment and absolute return, weaken relative ranking, and favor the subject matter of banks such as undervalued and high dividend state-owned banks. Reiterate the view that steady growth and steady real estate should be strengthened, and continue to be optimistic about the bank market. High quality city commercial banks are preferred, and individual stocks continue to recommend high-quality regional banks: Bank Of Chengdu Co.Ltd(601838) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Hangzhou Co.Ltd(600926) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Bank Of Nanjing Co.Ltd(601009) , etc., and pay attention to the value of large state-owned banks such as Postal Savings Bank Of China Co.Ltd(601658) .
Relax the public offering licenses of banks and financial management subsidiaries to benefit banks
The opinions on accelerating the high-quality development of the public fund industry are clear: “We will actively promote the establishment of fund management companies by high-quality financial institutions such as commercial banks, insurance institutions and securities companies according to law. We will adjust and optimize the public fund license system, moderately relax the restrictions on the number of public offering licenses under the same entity, and support professional asset management institutions such as securities asset management companies, insurance asset management companies and bank financial management subsidiaries to apply for public fund licenses according to law and engage in public fund management business.”
Previously, the control of banking fund licenses was relatively strict, and the licenses were basically stable. At present, among the listed banks, there are five major banks, China Merchants Bank, Shanghai Pudong Development Bank, Societe Generale, Minsheng, Beijing, Shanghai, Ningbo and Nanjing. 13 banks have 14 public fund companies, among which Shanghai Pudong Development Bank has two public fund companies: Shanghai Pudong Bank AXA and Shanghai Investment Bank. In addition, Boc International (China) Co.Ltd(601696) also has a public offering license. Among the 149 fund companies announced by Wande, the scale ranks 10-57, which is above the middle on average. More banks can apply for public offering licenses, and banks with licenses can also obtain incremental licenses, which will help banks expand the territory of wealth management, expand the scale of asset management, increase the income of commission sales and management fees, and may weaken the restrictions of scale on investment management.
Encourage long-term assessment, weaken relative ranking, and benefit the subject matter such as undervalued and high dividend state-owned banks
Lengthening the assessment cycle, emphasizing absolute return and weakening relative ranking are conducive to increasing long-term anti volatility funds in the market. First, lengthen the assessment cycle of investors, emphasize absolute return, and “guide fund managers to adhere to the concept of long-term investment and value investment” “Urge fund managers to establish and improve the long-term assessment mechanism covering core employees such as operation management and fund managers, bring compliance risk control level, long-term investment performance of more than three years and actual profits of investors into the scope of performance assessment, and weaken the assessment proportion of scale ranking, short-term performance, income and profit and other indicators.”. Second, weaken the short-term incentive of sales and emphasize the sales assessment guidance of long-term income of investors. “Strengthen investor suitability management, practice” reverse sales “, actively expand continuous marketing, innovate investor companionship, and strengthen investor protection. Urge sales organizations to continuously improve the internal assessment and incentive mechanism, effectively change the phenomenon of “emphasizing the initial offering and neglecting the operation”, prohibit short-term incentive behavior, increase incentive arrangements for long-term investment behavior such as fixed investment of funds, and incorporate the sales retention scale and long-term income of investors into the assessment index system. “. Third, increase the proportion of medium and long-term funds such as pension. “We will continue to promote insurance, financial management, trust and other asset management institutions to increase the actual proportion of equity investment through direct investment, entrusted investment, public funds and other forms, and implement long-term assessment.”
Risk tips:
The epidemic situation has been repeated, the export demand has weakened, and the economy has fallen more than expected; Financial regulation exceeded expectations.
