Why Does The New Regulation Of Asset Management Not Give "Margin Cycle"?

On the evening of July 31, the central bank announced that in order to steadily promote the implementation of the new asset management regulations and the transformation of asset management business norms, the transition period of the new asset management regulations was extended to the end of 2021.

However, a spokesman for the CSRC said that according to the actual regulatory progress and risk situation, there will be no delay in the regulatory rectification of public placement classified funds. Public placement funds will continue to be standardized by the end of 2020.

From the perspective of the progress of the rectification of classified funds, the statistics of 21st century economic report reporters show that, as of August 6, 2020, the number of listed classified funds has decreased from 134 in April 2018 when the new regulations on asset management was issued to 104, a decrease of 30, with a decrease rate of 22%.

According to the statistics of 21st century economic report, there are 104 graded funds in total, 38 billion shares of sub class A and B need to be rectified, and the total scale of sub category A and B in the exchange exceeds 40 billion yuan.

Speed up the transformation

On August 7, Boshi fund officially completed the transformation of two hierarchical funds. This is the latest news about the transformation of graded funds.

It is not easy to complete the rectification of classified funds. As early as May 25, Boshi China Securities 800 securities insurance index grading and Boshi China Securities bank index grading funds both issued an announcement, saying that they would hold a meeting of fund share holders by means of communication to discuss matters related to fund transformation.

One of the most difficult tasks for graded funds is to hold a general meeting of shareholders and communicate with each other. Boshi fund's two graded funds set the transition voting time window for more than a month. According to the announcement, the voting time of the meeting is from May 25, 2020 to June 29, 2020.

"In view of the need for such industry indices for the company's product layout, the company chose to transform into a lof fund." Introduction to Boshi fund.

Finally, the sub units of Boshi's two graded funds were terminated from listing, and the hierarchical operation was cancelled. At the same time, the investment scope and investment restrictions were modified.

Boshi Fund said that for large-scale funds, it is suitable to transform or merge shares into master fund shares to lof. On the one hand, the public offering can lead to more instability in the distribution of products; on the other hand, it can also lead to instability in the industry.

As for the smaller "mini fund", Boshi Fund believes that it is more suitable for direct liquidation, because the high costs such as management fee and index usage fee are not suitable for continuous operation.

Boshi's two graded fund master shares account for as much as 80%, which can be seen that the investment demand of sub shares in recent two years is not too strong.

Zhang Ting, a senior Macro Analyst at GESHANG wealth, said that since the stock market crash in 2015, regulation has gradually reduced the size of graded funds and raised the investment threshold. Many graded funds have been wound up or transformed into ordinary index funds.

From the policy point of view, in the second half of 2015, the regulatory authorities stopped the approval of classified funds, and in June 2018, the regulatory authorities gave a timetable for the withdrawal of graded funds: on June 30, 2019, the rectification of less than 300 million classified funds will be completed, and the rectification of other classified funds will need to be completed before 2020.

However, some people in the industry said that so far, the rectification work of less than 300 million classified funds has not been completed.

At present, many fund companies are vigorously promoting the rectification of hierarchical funds.

"The disposal of our stock classified funds is proceeding in accordance with the original plan, and the products involved will be transformed into lof. At present, it has been approved by the general meeting of shareholders and announced to the public." A large fund company said.

"We are ready to transform into an ordinary index fund. The difficulty of transformation is to hold a general meeting of shareholders to vote. There has been no new progress in the last two months." A small and medium-sized fund company said.

And two large fund companies in South China said that they are doing the work of hierarchical fund transformation and plan to transform into lof products. However, due to the large scale of hierarchical funds, the work is difficult.

Although the rectification of hierarchical funds is very difficult, all fund companies have said that they will actively implement the relevant work.

"We support the regulatory approach. When investors participate in the trading of sub fund shares, especially when the market fluctuates violently, the aggressive shares with leverage are prone to relatively extreme risks. We have been strengthening investor education, risk warning, etc Penghua Fund Manager Chen Long said.

"We are in favor of the exit of the tiered funds." A fund company said.

The first reason is that the graded fund is not conducive to creating a healthy and sustainable "slow bull" market: the graded fund was born around 2007 and was sought after by the market in the bull market in 2015. However, when the market drops by a large margin, it also has a huge impact on the market and investors. The classified fund will not only enlarge the leverage, but also have unstable leverage and risk Due to a series of problems such as asymmetry and complicated terms, such products will play an "amplifier" role in the short-term rise and fall of the market, which is not conducive to the healthy and sustainable development of the capital market.

Second, because of the qualitative difference between graded funds and public funds: public funds are regarded as the most suitable investment tool for ordinary investors to conduct financial management, which determines that public funds should meet the actual needs of the vast majority of ordinary investors in product design and investment operation; in fact, compared with professional investors, ordinary investors in our country have the ability to bear risks and to finance In terms of product understanding, there is still a big gap. Therefore, the withdrawal of high leverage and high-risk products such as graded funds is conducive to protecting the interests of these ordinary investors and shaping the social responsibility image of the public fund industry.

Smooth exit path

When the central bank extended the transition period of the new regulation for asset management by one year, the CSRC decided not to delay the normative rectification of the public offering classified funds.

"There are some difficulties in the liquidation of classified funds, but if there is no delay, it needs to be completed according to the prescribed time limit, because the classified funds involve a large number of customers. It is more difficult and complicated to complete the transformation scheme of graded funds through continuous communication." Yang Delong, chief economist of Qianhai open source fund, said.

Yang Delong suggested that fund companies should prepare early, implement plans early, and communicate with customers early, so as to complete the transformation within the time limit and handle the problems of graded funds.

Boshi fund introduces that the main measure of smooth exit of hierarchical transformation lies in effective information communication. There are two main ways of effective information communication: one is full information disclosure: each link in the process of transformation is fully disclosed, and the transformation arrangements and main risks are disclosed to investors in a timely and effective manner; the other is effective disclosure method: information disclosure of fund companies mainly relies on the announcement issued, which can increase the number of SMS, APP platform pop-up window and other channels and styles.

Penghua Fund Chen Long said that the rectification of hierarchical funds should do a few jobs: first, to guide market expectations. "Therefore, there may be a large impact on the market share of B after it exits the exchange. For the varieties with higher premium, risk warning should be carried out in advance. " Chen Long said.

"The second is to try to choose the relatively stable stage of the market for exit work, so as to avoid emotional impact; third, after the completion of the exit work, some investors may not understand the whole procedure or are not satisfied with the results, which requires active follow-up afterwards, timely communication and explanation." It points out.

Can I have a chance?

At present, there are mainly two rectification paths for the current classification: termination of operation or transformation. No matter which rectification scheme is adopted, the graded A / b sub shares will eventually be cashed in accordance with the net value, that is, in the process of rectification, the b-end investors with premium will face the risk of premium convergence, while the a-end investors with discount will enjoy the increased income brought by the discount.

Data show that a large number of graded fund B is in a state of premium recently.

According to the estimated closing data of Huabao securities on August 3, 19 graded B are estimated to have a premium level of more than 20%. The total scale of these high premium B's is 3.2 billion yuan, of which only four graded b-gem B (15015.314 billion yuan), Internet B (15019.5316 billion yuan), securities B (15017.2949 billion yuan) and military B (15018.2475 billion yuan) have a scale of more than 100 million yuan.

Under the high premium, the classified Fund announcement warns the risk.

For example, on August 6, China Merchants Securities biomedical index grading Fund released class B share premium risk tips and suspension and resumption announcement.

According to the announcement, the closing price of biopharmaceutical B20 in the secondary market on August 4, 2020 was 4.480 yuan, which was 235.35% higher than the reference net value of fund shares of 1.3359 yuan on that day. As of August 5, 2020, the closing price of China Merchants Group B biomedical market was 4.032 yuan. The premium between the transaction price of the secondary market and the reference net value of fund units is relatively high. If investors invest blindly, they may suffer heavy losses.

If investors buy the fund at a high premium before the end of 2020, investors may be prompted to complete the investment of the fund by the end of 2020.

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