In recent years, the public fund business has become one of the important driving points of the asset management business of securities companies, insurance, banks and other institutions. Relevant institutions continue to actively layout through increasing holdings, holding shares and applying for public fund licenses. However, the approval of the public fund license is not easy.
On April 26, the opinions on accelerating the high-quality development of the public fund industry (hereinafter referred to as the opinions) issued by the CSRC proposed to actively cultivate professional asset management institutions, expand the team of public fund managers, and adjust and optimize the public fund license system.
In this regard, the chief brokers interviewed believed that the relevant arrangements of the opinions would promote the high-quality development of the public fund industry. In the long run, the pattern of the public offering market will change and the competition will become more and more fierce.
institutions have their own advantages in competition
The above opinions propose to adjust and optimize the public fund license system, moderately relax the number of public offering licenses under the same subject, 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 and engage in public fund management business according to law.
Previously, subject to the “one participation and one control” policy, many securities companies were unable to apply for public fund licenses. On July 31, 2020, the CSRC issued the measures for the supervision and administration of managers of publicly offered securities investment funds (Draft for comments), which allows the same subject to control a fund company and a public offering Licensee at the same time.
Subsequently, securities companies began to accelerate the business layout of public funds Huaxi Securities Co.Ltd(002926) newly established West China fund, China Securities Co.Ltd(601066) increasing the equity of China Securities Co.Ltd(601066) fund to 100%, Guotai Junan Securities Co.Ltd(601211) asset management successfully applied for the license of public fund, Guotai Junan Securities Co.Ltd(601211) continuously increasing the equity of Hua’an fund and other cases continue to emerge.
“As can be seen from the opinions, the whole trend is favorable for securities companies and other institutions to enter the public fund management business.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said in an interview with Securities Daily, “in the short term, it will take some time to compete with ‘old’ public offering institutions. Because for some institutions, it takes time to make overall arrangements and promote from successful license application, professional team formation, and specific on-line customer service.”
Boc International (China) Co.Ltd(601696) asset management director Zhao Qingwei said in an interview with Securities Daily, “At present, securities asset management has the strongest willingness to win the license. There are many licensed institutions in insurance asset management. Under the guidance of the opinions, the bank’s financial management subsidiary may consider the layout of public fund business. The company will continue to optimize the strategic layout of asset management business development, strengthen corporate governance and talent echelon construction, constantly consolidate the company’s product design and give full play to the professional value of asset management institutions.”
At present, from the perspective of the structure of public fund managers, the data show that there are 67 fund managers in the Department of securities companies, 14 fund managers in the Department of banking and 5 fund managers in the Department of insurance. For a long time, fund managers of securities companies have occupied a leading position in terms of the number of fund management institutions and the scale of assets under management.
Under the background of further liberalization of public fund license business, securities companies and other institutions also have their own competitive advantages. Chen Li said, “first of all, the traditional commission thinking of securities companies has laid a good foundation for their business transformation. On the basis of their ability to divert customers, they only need to increase the closeness of the interests of customers and institutions to produce good results; secondly, securities companies and other institutions can make full use of the first mover advantage of the rich class customer base and make the fund a customer asset allocation choice by changing their investment structure.”
Compared with the previous strict control of bank fund licenses, Boc International (China) Co.Ltd(601696) analyst Lin Yuanyuan said, “after the implementation of the opinions, more banks can apply for public fund licenses, and banks with existing licenses can also obtain incremental licenses, which will help them expand the territory of wealth management, expand the scale of asset management, increase the income of commission sales and management fees, and may reduce the restrictions of scale on investment management.”
asset management scale can grow significantly
According to the data of China Foundation Association, there are 150 approved public fund management institutions in China. Among them, there are 13 securities companies or securities asset management companies that have obtained the qualification of public fund management; There are two insurance asset management companies.
Specifically, a total of 20 securities companies have set up asset management companies, and 8 securities companies have obtained public fund licenses, including Dongzheng asset management, Zheshang asset management, Bohai Huijin, CAITONG asset management, Changjiang asset management, Huatai asset management, Zhongtai asset management, Guotai Junan Securities Co.Ltd(601211) asset management Shanxi Securities Co.Ltd(002500) , Guodu securities, Dongxing Securities Corporation Limited(601198) , Beijing Gaohua securities, Boc International (China) Co.Ltd(601696) and other five securities companies have public fund licenses. Among insurance institutions, Taikang assets and PICC assets have obtained public fund licenses.
In addition, the establishment of asset management companies by six securities companies, including China International Capital Corporation Limited(601995) , China Securities Co.Ltd(601066) , 60030 , Sinolink Securities Co.Ltd(600109) , Huachuang securities, Shenwan Hongyuan Group Co.Ltd(000166) , is still under examination and approval. The number of securities companies that have begun to prepare or are willing to apply for public fund licenses is increasing, including Minmetals securities and Huajin securities.
As financial institutions compete for admission, they will face new competition and challenges in the public fund market.
Chen Li said, “First of all, institutions need to fully understand and grasp the needs of customers and consider their investment objectives and risk tolerance in many aspects. Therefore, how to help ordinary customers change their mentality of investing in the stock market in the past is the part that securities companies need to focus on. Second, the investment and research part of institutions needs to have more detailed deployment and planning for customers in making decisions on investment varieties, quantities and trading opportunities, so that fund customers can enjoy better product revenue Benefit, which in turn increases customer loyalty. If the institution can well achieve the above points, the scale of asset management will increase significantly, and the future can be expected. “
Guotai Junan Securities Co.Ltd(601211) non bank financial industry chief analyst Liu Xinqi said, “the release of the opinions will promote the high-quality development of the public fund industry, so as to effectively meet the wealth management needs of residents, and the securities companies with a higher proportion of public fund business will benefit relatively.”
