Bank Financing Is Difficult To Enter The &Nbsp Market; Overall Positioning Is Not Clear.

Wu Lijun, assistant chairman of the securities and Futures Commission, said last month that "guiding the bank's financial management plan to invest more in the two tier market for long-term investment and value investment" has stirred up waves in the stock market.

Regarding this, Yan Qingmin, assistant chairman of the CPPCC National Committee and the chairman of the CBRC, said during the "two sessions" that the CBRC should make overall research and set the corresponding proportional restrictions and institutional restrictions on the capital to enter the capital market, so as to control the risks.

Officials of the SFC said that the association had recently been in business with commercial banks.

"In the short term, it is difficult to make the case. The key is that the overall positioning of bank financing business is not yet clear. So far, there is no systematic design of banking asset management business."

A CBRC's innovation department confessed to Caixin reporters what he could cast and what he could not vote, and whether the bank's asset management department could act as a trustee, who should be accused as an economic dispute, and these basic issues have not yet been clarified.

The CBRC's innovation department has been leading the development of a framework for the overall institutional framework of bank financial products. Banks have been involved in discussions, including how to regulate the wealth management of banks to private banking clients and legal customers, but have not yet touched on the bank's financial capital investment in the stock market.

Commercial banks have appealed for fair access to the market for many years.

Compared with funds, brokerages, insurance companies, trusts and third party financial management, bank financial products can only be traded in the interbank market. The exchange market does not open to bank financing. Only a small proportion of bank financing funds enter the stock market through "one to many" and existing trust accounts.

"The regulatory authorities should promote the top-level design of the asset management system and set up a uniform national asset management law at the national level, requiring the assets management of funds, insurance, securities and banks to operate in accordance with the law, to achieve a fair competition and to promote fair competition according to the scientific mode of international asset management business, so as to truly promote the healthy and sustainable development of China's asset management industry.

Ma Xutian, deputy general manager of the asset management department of the head office of ICBC, said in an interview with Caixin reporter.

Difficult to enter the stock market

Although the SFC and commercial banks are quite active in financing the stock market, the CBRC officials believe that banks are mainly channels for selling products. For individual investors, funds, trusts and brokerages are all sold through banks. Why is it necessary for banks to enter the stock market?

However, many market participants believe that only financial products can be allocated in many markets such as stocks, bonds, gold and foreign exchange markets. Regulators should not block this path. "Regulators should allow investors to choose which institutions to manage their finances.

The result of administrative restriction is product homogenization.

Ma Xutian believes that the assets management scale of foreign big banks is 1 to 1 of the scale of assets in the table, the scale of the ICBC's business is 13 trillion yuan, and the balance of assets management should reach 13 trillion yuan. However, the scale of assets management is only 1 trillion yuan now, and there is still much room for development.

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He said that there are many new problems, such as whether the asset management business belongs to the category of separate businesses. Is it not possible for banks or other institutions to do asset management under the framework of separate operation supervision? He bluntly said that asset management business should not be a patent of a certain type of organization, and all kinds of eligible financial institutions can carry out asset management business.

Since the 90s of last century, all kinds of asset management participants and investment managers in the European and American markets have gradually carried out the standard mode asset management under the same basic law.

For example, the United States Financial Services Modernization Act 1999.

Ma further recommended that, from the perspective of NPC legislation, we should clearly define the investment position of the main body of financial management and standardize the standard business mode of bank financing.

Unified regulatory standards, information disclosure, risk assessment system and customer rating system are conducive to the safe and effective operation of the market.

A senior official close to the regulatory authorities believes that the management methods of assets management business in Hongkong and overseas are advanced, institutions are authorized to approve and register products, and the products are put into practice. These models are worth learning from the development of domestic asset management business.

Li Yang, vice president of the Chinese Academy of Social Sciences, believes that the significance of developing the banking industry is not only to promote the pformation of China's banking structure and the development of institutional investors, but also to promote the pformation of China's financial system through the development of the financial industry, from the past bank oriented and producer oriented to market-oriented and consumer oriented.

Strong growth

By the end of 2011, the balance of bank financial products has surged to more than 4 billion yuan. At the end of 2009 and the end of 2010, the balance of bank financial products was about 1 trillion and 700 billion yuan and 2 trillion and 800 billion yuan respectively. During the same period, the scale of trust asset management also increased to about 4 trillion and 400 billion yuan, which was close to the total assets of 4 trillion and 600 billion yuan in the securities industry.

Compared to the 2011 public fund industry wide loss, brokerage business information management performance is bleak, the bank financial business relative risk is low, earnings steady.

In 2011, ICBC achieved about 10000000000 yuan in profit and about 30000000000 yuan in profit.

At present, nearly 100 banks are involved in the sale of financial products market, including city commercial banks and agricultural firms.

The monthly sale of financial products is at least 1500 or more. In 2011, the size of the fund raised has been about 16 trillion yuan. The number of offering and raising funds is far more than the sum of other similar products.

The continued macroeconomic regulation, credit crunch and commercial banks' deposit and loan ratio in 2011 are also one of the reasons for the expansion of demand for financial products.

The industry challenged its trust products to "shadow banks".

In response, the CBRC officials analyzed CFA new reporter that China's financial market products and foreign "shadow banks" are fundamentally different.

The latter has such problems as lack of supervision, high leverage, huge volume, systematic risk, complex products, and arbitrage of supervision. However, China's financial products, whether bank financing or trust products, are in the regulatory domain, and the structure is relatively simple, pparent, and low leverage.

With the rapid development of the financial market, there are also many controversies, such as the existence of a large number of ultra short term financial products, such as illegal interest collection, non real investment, and pfer of bank internal income.

According to data provided by Puyi wealth, the number and scale of issuance of bank financial products in 2011 increased by 71% and 134% respectively compared with 2010. The magnitude of such a large increase is related to the short term products issued by high-frequency products throughout the year.

Initially, this product was launched by a large bank with the advantages of large financial management funds. It collects and collects funds from multiple financial products centrally and uniformly, and banks can get interest spreads through mismatch of asset maturity to form capital scale efficiency and reduce costs.

But this kind of "capital pool" financial management is multiple financial products with multiple assets at the same time, can not achieve one-to-one correspondence, resulting in a single financial planning cost calculation difficulty, risk is not controllable and other issues; some banks with rolling issue, dynamic management and low pparency of information characteristics, to do this kind of high financial products revenue.

Under the pressure of regulatory policy, despite the significant reduction in credit management products in 2011, more than 90% of the credit products did not provide explicit risk control measures, and less than 10% of the products in the form of guarantee guarantee, asset repurchase and other forms of control of the risks in the operation of products; the financial assets business mode fluctuated relatively large, and the profit mode was extensive. At the same time, the financial management mode between banks was homogenized. For example, commercial banks still had no clear and differentiated positioning for private banking business. The services provided were overlapped with the VIP financial services of banks, and did not highlight the function of "wealth steward", and still remain in the stage of selling products.

Cleaning up "asset pool"

The "asset pool" mode is currently the mainstream asset management mode of Chinese commercial banks, but the practice of large banks and small and medium-sized banks is quite different, and there are differences between big banks.

The "asset pool" mode was initially established by big banks. With the credit crunch in the second half of 2010, banks started a savings war. The price war between banks and financial products became more and more intense. Many small and medium banks failed to launch some competitive high liquidity and high yield financial products in a timely manner.

In order to retain customers and increase intermediary business income, they also began to follow the big bank to build "asset pool".

In the case of limited asset growth and increased liquidity demand, commercial banks often pack bonds, loans and bills into financial products. By compressing the assets in the table to obtain business development space and liquidity support, they will arrange their issuance and expiration date at the end of the month when the loan to deposit ratio is assessed. The "asset pool" financial products will be pformed into the deposit taking tools and assets and liabilities adjustment tools of commercial banks; and the operation mode of "one pot porridge" of the "pool of assets pool" is opaque, and insiders pointed out that there may be conflicts of interest between products, and it is also not conducive to risk control.

In October 2011, the CBRC asked banks to clear up the "asset pool" and push banks to move from the "pool of assets pool" mode to the standardized net value portfolio, turning multiple financial products to multiple assets to a single financial product corresponding to a single asset, so as to achieve the sole accounting of a single financial product.

This requirement has the biggest impact on small and medium-sized banks.

A joint-stock bank personage said that small and medium-sized banks have just followed the "asset pool" model in the past two years, and the first big banks that launched the capital pool mode are stronger than the small and medium banks in terms of innovation capability, talent reserve and IT system, and the pformation mode is relatively easy.

ICBC has abandoned the "asset pool" mode five years ago, so that each product is managed separately and independently, so as to realize the pformation of international portfolio management mode.

At present, there are few commercial banks that can initially set up this model.

Ma Xutian believes that from 2007 to 2008, new shares were popular. In 2008 and 2009, bank financing products were mainly bonds and trusts, and the cooperation between banks and letters was limited, mainly bonds and project investment.

However, the fluctuation of business mode of bank financial products is too great for sustainable development.

From the international experience, the portfolio management mode of net value and dividend should be the main development direction of asset management business, that is, a product is managed like a fund separately, combined investment, fair pricing, and a set of liquidity indicators, duration indicators and credit risk indicators are used to regulate investment.

Talking about how to avoid the "pool of assets" mode, Ma hsutian believes that some banks are unable to keep up with the development of business systems and risk management systems, but this is not sustainable and requires the development of a professional management system, including the separation of the former, the middle and the backstage.

According to Ma Xutian, ICBC started managing its more than 2000 products from 2007. Each product has a set of risk parameters, which are controlled by different indicators, such as liquidity index, duration index, interest rate risk control, credit risk control, and single investment product cap.

The system has been upgraded to the fifth generation and requires a large amount of capital investment. Up to now, ICBC has invested hundreds of millions of yuan into the system every year.

Now some banks are still in the early stage of development of the first generation system. Some small banks are still manually entering the accounts, because there is no system, no way to separate accounts, and no long-term control can be implemented.

He suggested that, drawing on international experience, bank financing should have business access, and hierarchical licensing and classified management should be implemented.

For example, a large capacity bank can be a fully licensed asset manager, that is, debt, equity and equity products, including some derivative products, which can be invested. It requires that these banks' operation mode, risk control capability, information disclosure, talent team and IT system achieve a good level. This is the highest level of license. Second types of licences allow banks to develop relatively simple financial products, and appropriately relax the standard of management capacity of banks; the third type of licences can only be sold on a commission basis, and they can not develop products independently.

The industry believes that most of the

Configuration concerns

In mid 2011, the CBRC issued a series of targeted preventive policies for the above-mentioned problems.

At the end of June 2011, the CBRC convened a symposium on the supervision of financial services by major commercial banks in China, and issued detailed prohibitions for banks to issue short-term products, such as high interest storage, multiple asset's "asset pool" operation mode, financial funds issuing entrusted loans, bypass trusts to develop trust income rights financial business, intending to narrow the scope of credit asset pfer business, and commercial banks to purchase financial products such as his bank or bank.

Under such circumstances, the investment scope of financial capital has been greatly reduced. Bond and money market products have become the main issue with the characteristics of their investment safety and low risk. The number of annual issuance accounts for over 50%.

An industry insider said that the investment process of money market products is relatively simple, the risk control is clear and pparent, the counterparty's credit risk is relatively small, and the internal risk of banks is relatively small. Therefore, bank financing funds invest mostly in bonds and money markets. Under the tight credit environment, the market capital shortage makes the bond and money market returns higher than that of the investment market, so the products are highly sought after in 2011.

An industry insider said that the vast majority of portfolio investment products were non guaranteed floating income type, and their funds were diversified. Some of the funds were invested in a stable market such as bonds and money markets, so as to protect investors' bottom income. Some of the funds invested in high-risk assets such as Yu Jijin, stock, stock rights, credit assets, bills assets, commodities and so on to pursue extra profits.

Some market people believe that if there are signs of monetary policy relaxation in 2012, the rate of return on the issuance of fixed income types, including monetary market and portfolio investment, will be downtrend as a whole; while the ultra short term products, credit and bill assets are contained, the higher yield of these products in fixed income products will also reduce the overall yield of the products.

Wang Boying, a researcher at the financial center of the Chinese Academy of Social Sciences, told finance and finance reporters that the proportion of credit assets allocated to some of the stable commercial banks was about 10%, and some relatively radical commercial banks could reach 60% to 70%.

These credit assets, or new loans or stock loans, are partly related to real estate loans, or even lack of loans from local government financing platforms after the financial crisis in 2008.

He said frankly that the allocation of such credit assets in the "asset pool" did raise the income of asset pool financial products, and it also contained greater risks. Once the default problem occurred in the basic investment field, the whole chain of funds of the "asset pool" financial products would break up and serious payment would be possible.

Aforementioned Oriente Asset Management Co introduced that in Hongkong, the public oriented financial products are mainly standard financial products that invest in structural combinations, including stocks or bonds of real estate companies. Products for high net worth and corporate investors include hedge funds and alternative investments, which cover real estate, commodities and so on.

Regulatory departments have different requirements for information disclosure, and require less products for high net worth people and corporate investors.

"Foreign financial markets are facing two major market risk factors: monetary policy and interest rate change.

China mainly considers the credit risk of individual projects.

Rao G, China Sales Director of Misys financial market, said.

In the early days of the development of the financial industry, the phenomenon of personalized financial products, that is, to go beyond mutual funds, is contrary to other countries.

Wang Zengwu takes the United States as an example, referring to the stage of personal financial management after the great development of the fund industry, such as the development of hedge funds in the past ten years.

The reason why China's financial market has stride across the standardized financial management era has directly entered the stage of individualized financial management, mainly based on banks and trust products. The fundamental reason is that the underdevelopment of the capital market has restricted the development of standardized products, and the arrival of personalized financial products has also brought challenges to the regulatory authorities.

"Most foreign products have no expected yield.

What if the expected earnings can not be paid on time? The information disclosure of bank financial products and the information disclosure of funds are also different according to the net value. For example, the investment target is real estate and can not be published daily. The wealth management of foreign countries is the concept of trust. Does China's Bank financial products have independent property rights and bankruptcy isolation mechanism? Lack of overall positioning and superposition law, and the details above serve the overall positioning.

The CBRC stressed this.