The First Batch Of Financial Sub Companies' Product Competition Speed Up Public Offering Fund Seeks "Balance Of Competition And Cooperation".

Bank financing subsidiaries are relying on the channel advantages of commercial banks to promote the first batch of products.

"Recently, some banks have called to sell their new products from their own financial subsidiaries. The expected rate of return is higher than that of the general monetary fund." An investor in Beijing told the twenty-first Century business news reporter.

In November 21st, the economic report reporters visited many commercial bank outlets in twenty-first Century and learned that many banks were stepping up sales of related products.

The background is that after a number of banks' financial subsidiaries have opened up, the related products have been rushed into the market.

Up to now, the 7 subsidiaries of ICBC, agricultural bank, Bank of China, construction bank, Bank of communications, Everbright Bank and China Merchants Bank have opened their business. In addition, more banks have been approved to prepare financial subsidiaries.

For fund companies, the pressure of competition is also growing. Especially for fixed income products, competition is particularly fierce, and the earnings of bank financial products are higher than that of the public offering monetary fund, which has become one of the selling points.

Bank financing subsidiaries are relying on the channel advantages of commercial banks to promote the first batch of products. - Song Wenhui diagram

Issue competition

According to the twenty-first Century economic report reporter combing, at present, ICBC financial management, agricultural bank financing, Jianxin financial management, Bank of China finance, Bank of Finance and other financial subsidiaries have issued financial products.

For example, at present, a financial product of Nong Yin financial management company is now on sale in the financial supermarket of ABC mobile bank. The product is the first phase RMB financial product of "Nong Yin Xin Xin, an annual open". It is a fixed income product with a starting point of RMB 1 yuan.

The product's benchmark performance is 4%, the subscription period is from November 15th to November 27th, and the proportion of assets such as deposits and bonds is not less than 80%.

In fact, this product is also the first financial product launched by Nong Yin financial management. At the opening ceremony in August, Nong Yin financial management launched a series of 4+2 products, including four conventional products, namely cash management + fixed income + mixed + equity, and two series of products, such as benefit agriculture products and Green Finance (ESG) products.

In November 21st, our reporter visited a Agricultural Bank Network in Beijing. The staff were very familiar with the newly released financial products. They said they could buy it at mobile banking.

Sources told reporters that many commercial banks aimed at product sales of financial sub companies, specializing in financial management training.

Similarly, the Bank of China currently has a product of the Bank of China finance company on sale. According to the twenty-first Century economic report reporter, the product is "Bank of China wealth management (stable) (closed) 201912", its performance benchmark is 4.7%, also a fixed income product, the starting point is 1 yuan.

Before the launch of the Bank of China in July this year, the Bank of China launched five new financial products, namely, "global configuration" foreign currency series, "steady Fu, Lu, Shou, Xi" pension series, "Zhi Fu" equity series, "Ding Fu" equity investment series and index series.

In November 21st, our reporter inquired about the wealth management products of several bank mobile banking companies.

In the subsidiary column of ICBC's mobile banking subsidiary, there are "ICBC finance Hengxin fixed income closed net value products", "ICBC finance global rotation fixed income closed net value products", "ICBC financial management Hengxin 733 day fixed income closed net value products" and so on, and 17 products are on sale, of which 5 products have been sold out.

From the point of view of product type, there are a lot of fixed income products. Besides, there are several mixed products.

"At present, there are many types of investment products issued by bank financing subsidiaries, most of which are closed and long term, and some are regular open products. From the level of earnings, or higher than the traditional bank financial products. An analyst from a well-known third party organization told the twenty-first Century business reporter.

According to the management method, the public offering financial products issued by the financial sub company can directly invest in stocks. With the gradual development of the market, the products of bank financing subsidiaries will have more room to play.

Public offering should be busy.

"Now the products of bank financing subsidiaries are also very hot, and we will still have more or less pressure." A public fund worker in Beijing told the twenty-first Century business reporter.

"The bank financing subsidiary has strong channel advantages, and if the products of financial sub companies form a homogeneous competition with the products of the fund companies, then the banks will give priority to the sale of their subsidiaries, and the fund companies' dependence on the banking channels is relatively high in the past. Therefore, the public sales terminals may be under pressure, and the banks have natural advantages in the fixed income products, so the fixed income products of the public offering funds may be under the pressure of the bank financing subsidiaries." A public fund in Southern China was interviewed.

Faced with the strong competition of bank financing subsidiaries, many public offering funds are also seeking new opportunities.

"When the news came out of the financial sub company, we remained concerned. Before that, the company also analyzed the financial subsidiaries of the relevant banks." The former public fund told the twenty-first Century economic news reporter, "for some small and medium public offering fund companies or most of the public fund companies relying on bank channels, the long-term impact will be relatively large."

Nonetheless, many public offering funds also mentioned opportunities for cooperation with bank financing subsidiaries.

"Basically, public funds and bank financing subsidiaries are both competitive and cooperative. As early as we all predict that the product will be affected, so we are more active in seeking some cooperation, such as bank financing subsidiaries may be relatively weak in the rights and interests of products, this piece can have opportunities for cooperation. A large public offering fund in Beijing said.

According to it, the company in the future may also cooperate with bank financial subsidiaries in more categories of products, such as index products and so on.

From the current market situation, many public funds have reached relevant cooperation with bank financing subsidiaries.

For example, Jianxin finance has worked with many fund companies to set up a number of products, including the "China Europe Fund - Jianxin financial fixed collection No. 1 collective asset management plan", "easy Fonda Fund - building credit management rights and interests 1 collection asset management plan" and so on.

From the perspective of market feedback, similar public funds will take over more and more products from banks' financing subsidiaries.

"The fund company has strong ability to invest and research, and it can export investment and research capabilities to financial subsidiaries. In the future, you may have more cooperation. For example, some small and medium-sized banks' financial subsidiaries may be more actively seeking cooperation with fund companies." The aforementioned public fund people said.