The Transition Period Of The New Asset Management Regulation Is Extended, And Financial Institutions Get "Breathing Space" And The Pressure Of Rectification Remains

On August 3, affected by the favorable news that the transition period of the new asset management regulations was extended to the end of 2021, a shares rebounded greatly.

Shanghai index rose 1.75% to 3367.97 points, Shenzhen composite index to 13964.56 points, up 2.4% to 2868.88 points, up 2.63%.

"The main reason is that the new regulation on asset management issued by the central bank in April 2018 is regarded as a relatively strong deleveraging policy. Many investors are worried that this may lead to the shortage of funds in the market. The extension of the transitional period of the new asset management regulations for one year will loosen the bond on the capital side of the market and be conducive to the recovery of the A-share market. " Yang Delong, chief economist of Qianhai open source fund, said.

Good for banking sector

On July 31, the central bank announced that, in view of the impact of the new pneumonia epidemic on the economy and finance in 2020, the transformation of asset management business norms of financial institutions is facing greater pressure, and the transition period of new asset management regulations will be extended to the end of 2021. In addition, it also proposed to deal with individual financial institutions that could not be fully rectified before the end of 2021.

Mingming bond research team believes that extending the transition period for one year will allow more long-term old assets to mature naturally, which helps to avoid capital pressure on financial institutions caused by centralized disposal of existing assets and credit contraction pressure on financing entities such as enterprises and urban investment platforms, so as to reduce the impact on the financial market.

The new asset management regulations affect the 100 trillion asset management. According to the new asset management regulations launched in April 2018, the transition period of the new rules will be completed by the end of 2020. After that, some products will be withdrawn from the market, including a large number of bank principal guaranteed financial management.

According to the calculation of Puyi standard, by the end of the second quarter, the net value transformation progress of financial products of banking institutions in the whole market was 53.82%. According to previous regulations, a large number of financial products need to be transformed by the end of this year.

Tianfeng Securities pointed out that the balance of non breakeven financial management at the end of 2019 was 23.4 trillion yuan, an increase of 6.15% year-on-year. In the past three years, the balance of bank financial management has remained stable at around 23 trillion yuan. After the extension of the transition period, all institutions will adjust the previous delay expectations, adjust the pressure drop rate of old products, and the scale of off balance sheet financing may fluctuate in 2020.

YueKai Securities believes that the extension of the new asset management regulations has given financial institutions more time for transformation. "Many banks are slow in rectification and have long-term stock assets, which can not be properly handled by the end of 2020."

"The one-year extension of the transition period of the new asset management regulations provides institutions with a breathing space." Zhao Lu, a researcher at Puyi standards, said.

The first to benefit are banks. Zhao Lu said that the transition period of the new asset management regulations has been extended, and more time has been reserved for banks to make efforts to promote the transformation simultaneously.

On the asset side, it is beneficial for commercial banks to steadily push forward the pressure drop of stock assets, and carry out the renewal and conversion of the mature stock assets in a longer time; on the liability side, the extension of the transition period will reserve more time for the banks to carry out investor education. In terms of talent distribution, the extension of the transition period has reserved a long time for the creation of professional bank teams.

"At present, about 14 banks have set up financial management subsidiaries. The extension of the transition period of the new asset management regulations is conducive to the maturity and development of the financial management subsidiaries and the smooth transition from the parent bank to the financial management subsidiary." Zhao Lu said.

"The extension of the transition period of the new asset management regulations does not involve the changes and adjustments of regulatory standards related to the new asset management regulations," said a director of public fund product department. The new asset management regulations have a great impact on the stock financial products of commercial banks, because the new regulations have a profound impact on traditional bank financial products by prohibiting the operation of capital pool, restricting non-standard items and requiring valuation by market price method, and require non-conforming bank financial products to be rectified within a time limit. The essence of the new asset management regulations is financial deleveraging. The extension of the transition period of the new regulations will help to alleviate the pressure on banks to clean up the stock of non-conforming financial products, and also help to reduce the impact of forced deleveraging on market liquidity. "

The extension of the transition period of the new asset management regulations is a good thing for the capital market.

"The extension of the transition period reflects the trend of marginal easing of supervision, which is conducive to the improvement of the overall risk preference of A-share market. Specifically, first of all, it eases the pressure of financial transformation of banks to a certain extent, bringing benefits to the banking sector; in the long run, orderly promotion of capital market reform will promote the valuation of securities companies. " Dong Haibo, a researcher at GESHANG wealth, said.

Rectification pressure still exists

However, the extension of the new regulation is not aimed at all asset management businesses.

According to the actual regulatory progress and risk status, the regulatory rectification of public offering financial bond funds and public offering graded funds will not be postponed. Public placement funds will continue to be standardized by the end of 2020.

A spokesman for the CSRC said that the regulation of public offering financial bond funds mainly involves contract change arrangements. At present, most of them have completed the standard rectification, and the remaining part will continue to complete the specification by the end of 2020 in accordance with the requirements of the notice on regulating the business of financial bond funds. Public placement funds will continue to be standardized by the end of 2020.

"For mutual funds, the transition period of the new asset management regulations has been extended, and the rectification time of public offering products to be rectified has not been extended." Or, for a large public offering company, the director of the liquidation of a large-scale fund means that. As for the short-term financial bond base, it is to adjust the investment scope and transform it into a common bond fund. "

A person from a fund company said, "affected by the new rules on asset management, the situation of each company is different. Our company mainly focuses on special accounts and graded products. There is no delay in grading, so it has little impact on us. Special accounts are mainly for some products with leverage, which need to modify the terms of the contract, but some need to hold a general meeting of the holders, so it will be more complicated. "

Another large fund company said that the products of its base gold company were greatly affected by the new asset management regulations, while the classified fund products were still being disposed of according to the schedule.

A Shenzhen fund company, on the other hand, said that the company had disposed of classified funds and the new asset management regulations did not involve other products of the company.

However, for some institutions, even if the transition period of the new regulation is extended for one year to the end of 2021, it will still be difficult.

Wu Xiaoling, former vice governor of the people's Bank of China, previously proposed to extend it for two years to the end of 2022. "It will be difficult to complete the transformation of the remaining 50% of the old products by the end of this year," she said. In 2020, 2021 and 2022, it is more practical and realistic to digest at an average rate of about 20% per year. "

Dong Haibo, a researcher at GESHANG wealth, believes that the extension of the transitional period for one year can, on the one hand, allow more long-term stock products to mature naturally and reduce the pressure on financial institutions. On the other hand, the one-year period is not long, which can encourage financial institutions to rectify and transform early, and "jump up to pick peaches". It also reflects the reform direction of resolving financial risks and regulating the financial market There has been a change.

"The strong regulatory situation of the regulatory authorities has not relaxed. In particular, it is expected that there will be more challenges for the non standardized banks in the future, especially in the aspect of net value management One trust industry person said.

However, it is not expected that the stock of new standard asset management will be delayed by one year, but the stock of non standard asset management will be delayed for one year, but the stock of non standard asset management will be prolonged.

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