Bonus No Longer How Baby Products Survive In The Future

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Xiaobian net to introduce to you is the bonus of baby products no longer, how to survive?

The abolition of dividends is not enough to cause a fatal blow to money market funds, but it will have a great restriction on the target and duration of the current money market fund investment. The management may wish to warn the potential liquidity risk in the development of the IMF, and maintain a delicate balance between the interests of the banking industry and the interests of the fund company.

Baby products dividend no longer, how to survive?

Prior to that, the central bank told Xinhua News Agency reporters that "when the financial business is moved online, we must obey the existing laws and regulations. We must abide by capital constraints."

There are no unreasonable terms of contract, such as the withdrawal of deposits in advance or the termination of services in advance, and the interest rate or the standard fee charged according to the original agreed period. "

This means that the money market funds currently invested in various kinds of online financial services will largely lose the original bonus of goods based products: early withdrawal without penalty.

For money market funds, it will face a lot of restrictions on investment targets and investment flexibility.

Crazy growth of IMF

Money market funds themselves do not have such a large market influence. Instead, they use the Internet channel to carry out the pformation of downstream sales terminals, and provide convenient and secure trading and redemption services before detonating the enthusiasm of investment and financing in the market.

The financial platform represented by the balance treasure has guided the online business and social traffic to the money market fund, which has created a very fast snowball effect in the short term.

According to the latest data released by the China Association of fund industries, the size of the IMF was 1 trillion and 423 billion 352 million yuan at the end of February, of which the size of the mono fund increased by 470 billion 100 million yuan in February.

Among them, the balance of the number of accounts opened has exceeded 80 million people, the scale of more than 500 billion yuan.

Nearly crazy growth rate, not only let the regulatory agencies at a loss, the desire of the big banks to limit the balance of treasure is also ultimately unable to bear, and in recent years, the central bank regulatory trend is becoming tighter. The central bank has revealed the cancellation of the "advance payment without penalty" preferential, and before that, the four major companies respectively lowered the maximum payment amount of Alipay single day and single month payment.

Why does the IMF become a target of public criticism?

The IMF has become the hot pet of market investors, and at the same time, the counterattack and restriction of traditional finance are also increasing.

From the source point, it is mainly the following two points:

First, the growth rate of money market funds is too fast, and the trend of capital diversion of banks is constantly highlighting. The cost of interest payments from the money market has increased and unstable, and the liquidity is relatively large. This has affected the bank's own asset liability management capabilities and the level of capital pfer pricing.

The essence of interbank business is to make up for the management needs of short-term fund positions, rather than to carry out large-scale capital pactions and flows, which is contrary to the nature of the business.

Of course, this problem is a systemic problem that the banking industry has been forming for a long time. The balance of treasure has led to the Monetary Fund.

Second, money market funds do exist some special policy dividends. This is also the premise that most monetary funds can achieve T+0 while guaranteeing high returns.

Early withdrawal of non penalty is a long term privilege of money market funds. When the interbank market was tight, the interbank market and fund companies gradually formed this unwritten agreement in the interest compromise and game.

However, for example, the insurance company's funds do not have such a discount, which is not only included in the general deposit management of the banking industry, but also affected by the interest rate control of the deposit, and the yield is matched to the time deposits of the banks.

In October 1999, the people's Bank of China approved Chinese commercial bank legal persons to conduct large scale time deposits on Chinese funded insurance companies, and the interest rates were determined through consultation between the two sides.

Therefore, the investment market of insurance products is generally regular, and there is no money market fund so flexible in terms of yield.

Besides, in terms of financial principles, money market funds are neither bank deposits nor under the jurisdiction of the Banking Regulatory Commission. However, on the objective effect, hundreds of billions of dollars have been inflow into the bank agreement deposits, forming the effect of bank deposits. At the same time, the interest rate of banks has been greatly improved, and money market funds have played a role as a financing intermediary.

Therefore, for the banking industry, the money market fund also enjoys the advantage of paying no penalty in advance in the case of deposits.

Therefore, even in the long run of capital market tension, banking industry can not get away from the needs of interbank business and capital disengagement, but it also expresses a greater dissatisfaction and resistance to the trend of diverting the bank's own savings funds by the monetary fund represented by the balance treasure.

Can the goods base be sustained if dividends are abolished?

Judging from the current source of information, although the central bank has no formal details, the cancellation of cargo based policy dividends will become a probability event. From a series of regulatory steps recently conducted by the central bank, the supervision of the third party payment and the derived Payment Finance will be increased.

For the rapid growth of the scale of money market funds such as balance Bao and the process control of purchase payment, the central bank will intensify the integration efforts, including possible payment limits and the forthcoming cancellation of policy concessions.

Money market funds can detonate the market, except for the fast and convenient front-end purchase process. The more important point is that it is far higher than the interest rate of demand deposits. At present, the 7 day yield of the balance treasure is 4.14%, reaching a maximum of 7%.

For money market funds, the cancellation of the "no penalty for early withdrawal" will largely limit the time limit and subject matter of its investment agreement deposits.

The underlying liquidity is not high and the expiration time is too long. Once a centralized fund is redeemed, the IMF will be hard pressed and can only be terminated in advance. The proceeds will be deducted. The income of the fund will either be replenished by the fund company, or the fund company will admit that its management capability is insufficient and sit idly by the loss of the fund customer.

However, the policy dividend has been abolished. Money market funds do not mean that they can not provide customers with the same return. However, the requirements for asset management and operation capabilities of fund companies and fund managers will be greater and the level of meticulous management will be even higher.

It is necessary to meet the requirements of deposit agreement and return on return negotiated with banks, and also to satisfy customers' T+0 experience and higher income requirements. The only feasible way is to improve their operation ability and liquidity management ability.

Even the balance of treasure, before enjoying the dividend policy, has been improving the ability of liquidity management.

Take the balance treasure as an example, more than 90% of its assets are invested in the agreement deposits, and most of them are short-term.

Wang Dengfeng, the manager of the balance fund, also said that the balance treasure never withdrew the deposit in advance, and its 70% asset investment period was 1 months, which would not have much impact on the liquidity of the balance treasure.

Therefore, once the dividend is abolished, there will be a greater negative impact on the IMF which is not strong in demand and management capability in terms of investment duration and target, while the impact on the IMF which is less paid in advance and the daily liquidity can be covered is relatively small.

The abolition of dividends is not enough to cause a fatal blow to money market funds, but it will have a great restriction on the target and duration of the current money market fund investment. The management may wish to warn the potential liquidity risk in the development of the IMF, and maintain a delicate balance between the interests of the banking industry and the interests of the fund company.

Looking at the marketization process from the perspective of IMF

Money market funds, in fact, are a subtle expression of the marketization of interest rates in China. The funds that are not originally marketed in the banks' liabilities will be introduced into the more interconnected market through Internet platform + fund company's product innovation, so as to carry out market-oriented capital cost pricing.

The result of this pricing is that the depositors raise their bargaining power and obtain greater return on capital, and banks provide relatively more interest cost.

The process of marketization of the interest rate of depositors is actually an integral part of the macro background of the current interest rate liberalization.

In some cases, money market funds are boosting the trend of interest rate liberalization, and the pricing of the banking sector is not yet fully market-oriented.

The long-term trend of the banking industry is also the marketization of interest rates, which is the tone of macroeconomic reform and the need to improve the efficiency of endogenous banking services.

At present, the interest rate of bank loans has been liberalized, and half of them have already stepped into the threshold of marketization. But considering the current development of domestic banking industry, under the deposit insurance system, the adjustment of banking industry has not yet been perfected.

Regulators consider ensuring a smooth pition of the banking industry by setting a certain buffer period.

In the short term, the impact of money market funds on the banking industry will be too great, which may affect the process or speed up, but lack of regulatory adaptation and appropriate follow-up of the industry.

Central banks and regulators recently focused on payment of Finance and this time.

Strict management may also be a regulation of the trend of interest rate liberalization driven by Internet finance.