CBRC Promotes Deleveraging Of Financial Products

A photocopy of the document entitled "supervision and management of commercial banks' financial services (Draft)" circulated on the Internet.

It is mentioned in the document that "allowing direct investment in securities accounts independently in the name of financial products" has been interpreted by some market participants as a financial product to invest in the stock market.

The Securities Times reporter learned from a person from the regulatory department that this understanding is purely misreading. The CBRC encourages direct investment to "go channelization", thereby reducing the cost of financing. Compared with the previous regulations, the investment scope of financial products has not been adjusted.

In the name of financial products, the "method" refers to independently opening relevant accounts such as capital accounts and securities accounts, and encouraging financial products to carry out direct investment.

Zhang Xuyang, general manager of Everbright Bank's financial management division, told the Securities Times reporter that the main purpose of the regulation is "de channelization", that is, bank financing products no longer need to use trust channels to open accounts for investment in securities designated products, but can directly open accounts and improve the independent status of bank financial services.

The direct opening of accounts to invest in securities designated products is not to allow more bank financial products to enter the stock market.

According to Zhang Xuyang, the "measures" did not change the investment scope of bank financial products. Previous project financing, equity investment and alternative investment and financing products can be sold for high net assets, private banks and institutional customers. This is also the same requirement.

In the "measures", it is emphasized that in addition to the financial products that are facing three groups of people with strong risk tolerance, the funds of other financial products shall not be invested in stocks or other related securities investment funds that are publicly traded in the domestic two tier market, nor shall they invest in shares of unlisted companies and non-public offering or trading of listed companies.

Since the "measures" did not modify the scope of investment that could be made before financial products, what is the meaning of "direct investment" in this regulation? Zhang Xuyang explained that direct investment means that bank financing funds can no longer invest in real economy projects through trust and other channels, but can directly invest in projects, so as to directly serve the real economy and reduce the financing cost of the real economy.

It is clear that the investment and utilization of financial capital should be based on the form of direct investment, and the nesting of layers should be avoided. With the goal of "deleveraging, going through the channels and going to the chain", banks should be encouraged to set up project financing products that do not have time mismatch, and allow eligible banks to set up a bank financial management plan and a direct financing tool.

Direct docking with enterprises' real financing projects helps enterprises to reduce financing costs.

In order to truly implement the risk bearing body,

"Requirements, in essence, the risk taking by the bank, such as capital preservation products, should be accounted for in the bank statement. Risk assets should be calculated according to the principle of" substance over form ", and risk preparation should be made. For banks, some non-standard assets that customers can not really bear credit risk require banks to have corresponding risk mitigation mechanisms.

According to the CBRC estimates, the open type

The three types of products, such as project financing products with no maturity mismatch, and the realization of "non-standard" conversion to standardized assets through financial direct financing tools and financial management plans, can undertake 2 trillion and 770 billion yuan "non-standard" assets. This means that assets that must be returned to the table are only 30 billion yuan left and right. In addition, after the formal implementation of the measures, there will be a grace period for the "non standard" return table, so it has little impact on bank financing business.