14 AA Grade Companies Are Expected To Benefit From The Pilot Of Non-Standard Asset Management Products Of Head Futures Company

The establishment of non-standard products by futures asset management is expected to break the ice.

China Securities Regulatory Commission (CSRC) intends to revise the measures for the administration of private equity asset management business of securities and futures business institutions and the provisions on the operation and management of private equity management plan of securities and futures business institutions (hereinafter referred to as the "asset management rules") to appropriately relax the relevant investment restrictions of futures business institutions; to allow the futures companies and their subsidiaries which have been classified as class A and AA in the latest two periods to set up investment targets Asset management products of non-standard assets such as quasi warehouse receipts and OTC derivatives.

The "detailed rules for asset management" is currently open for comments, and the deadline for feedback is November 22.

"The new regulation on asset management products to be revised provides futures companies with flexible hedging channels other than on-site derivatives, which helps to improve the ability of futures companies to meet customers' personalized risk hedging needs, so as to expand the asset management business of futures companies. But the new rules also put forward higher requirements for risk control and talents of futures companies. " Said Han Qian, a professor at Xiamen University's School of economics.

The establishment of non-standard products by futures asset management is expected to break the ice. IC photo

Futures asset management and real economy

"The capital management scale of the head futures company should be able to increase by about 40% As for the follow-up effects of liberalizing the asset management business of some futures companies to invest in non-standard assets, a person in charge of asset management business of futures companies in Shanghai said.

All along, the volume of futures asset management is at the bottom of the market. According to the statistics of China Fund Industry Association, by the end of the second quarter of 2020, the total scale of asset management business of fund management companies and their subsidiaries, securities companies, futures companies and private fund management institutions is about 54.75 trillion yuan. Among them, the private asset management business scale of futures companies and their subsidiaries is only about 187.7 billion yuan, accounting for 0.34% of the total scale of the industry.

According to the above-mentioned person in charge of futures asset management, futures asset management started late and chose to borrow channel business to develop management scale in the early stage of development. Therefore, under the influence of "de channelization" of new asset management regulations, the management scale has shrunk seriously. Under the influence of many factors, such as lack of investment and research talents, lack of capital strength and high product risk level, the ability of active management of futures asset management is also very poor. "The asset management business of some futures companies and asset management companies have been virtually nonexistent."

In addition, according to the classification of regulators, OTC options belonging to derivatives are also non-standard assets, and futures asset management can not participate in investment. But for futures companies, derivatives services are their strengths, which also affects the differentiation and characteristics of futures asset management.

"Now the futures asset management can only rely on some derivatives in the market to provide relatively standardized products, and the homogeneous competition is fierce." In the view of the person in charge of futures asset management, the liberalization of the establishment of non-standard asset management products by futures companies will bring growth momentum to the industry. "In particular, over-the-counter derivatives, including yield certificates, over-the-counter indexes or individual stock options, as well as the market value lock-in of new arbitrage, are very beneficial to the asset management of head companies."

The person in charge of asset management business of a domestic securities company also said that from the perspective of the timing of futures asset management investment in non-standard assets, it is relatively mature. Each head company engaged in non-standard warehouse receipt business has the experience of risk management subsidiaries, while the OTC option business will be supported by the parent company of the securities company. "Traditional commodity industry chain futures companies are also very good at making corresponding over-the-counter commodity options Potential ".

"Regulators also hope that futures companies can accumulate experience, increase revenue and train their teams in this process." The person in charge said that the development of asset management is an asymptotic process, and the liberalization of non-standard products is expected to bring distinctive asset management products to futures asset management.

It is worth mentioning that in the industry, the liberalization of non-standard products not only benefits companies, but also helps the development of the real economy.

Zheng Zhenlong, a professor of finance at Xiamen University's School of management, said that many of the real economy's demand for option products is personalized, and personalized products basically need to be traded over the counter. When serving the real economy, futures companies will certainly use various derivatives, including standardized and non-standard products. However, derivatives are highly specialized. If this business scope can be opened up, head futures companies can provide customized and accurate solutions to the problems faced by enterprises in a more refined way.

Prelude to industry reshuffle

According to the contents of the revision of the detailed rules for asset management, futures companies and their subsidiaries that have been classified and evaluated as class A and AA in the latest two periods are allowed to set up asset management products of non-standard assets such as standard warehouse receipts and OTC derivatives, and select head futures companies for pilot projects, so as to give full play to the professional advantages of futures business institutions, improve service ability and professional level, and meet the risks of real enterprises Management needs.

According to the classification evaluation results of futures companies issued by the China Securities Association for the past two years, there are 14 futures companies with Class A and AA grade in two consecutive periods, including Yongan futures, CITIC futures, Galaxy futures, Guotai Junan Futures, Zheshang futures, Shenyin Wanguo futures, Nanhua futures, SDIC Anxin futures, Guangfa futures, Everbright futures, founder medium term futures, COFCO futures, etc Haitong futures, Huatai futures.

These 14 companies may be the first to set up non-standard asset management products. However, some people in the futures industry said that the futures companies that will eventually participate in the pilot project may choose the best.

"After all, the statement of the new rules is to" select head futures companies for pilot projects ". Our slogan is" to raise the background of shareholders and comprehensive service capabilities of futures companies to a new level of magnitude ". In the future, there may be transformation arrangements for proprietary business.". A domestic double-A rating of a futures company personnel said.

In addition to double A-level evaluation, professionals are also the key to the development of futures asset management business.

"The head futures company still has a reserve of asset management talents. Most of the heads of asset management departments have overseas experience, which is greatly improved compared with a few years ago. However, the small-scale futures companies are still lack of talents, and the risks of non-standard products such as off-site options are relatively high, which is also the reason why the supervision chooses to open the head companies first. ". Han Qian said.

On the other hand, the capital strength of futures companies is also the key to restrict the development of asset management business.

After the issuance of the new asset management regulations, the total shares of securities and futures operating institutions and their subsidiaries participating in a single collective asset management plan with their own funds shall not exceed 50% of the total shares of the plan. However, industry insiders say that the ability of asset management of futures companies to raise funds is slightly weak, and they need as much self owned funds as possible to support the asset management plan.

In recent years, futures companies have become the focus of "blood transfusion". On October 23, China Merchants Securities announced that it would increase capital by 2.968 billion yuan to China Merchants futures, a futures subsidiary. Earlier, CITIC futures also received $2 billion from CITIC Securities.

The person in charge of asset management business of Shanghai futures companies said that at present, there are only three head futures companies with asset management scale of more than 10 billion yuan. If the scale of futures asset management has a steady growth after the liberalization of non-standard products, the capital strength of relevant head companies also needs to expand.

"The liberalization of non-standard futures asset management products is the prelude to the reshuffle of the industry. The industry rating can do a wider range of businesses, and if there are enough professionals and capital strength, the asset management business can be expanded. In the future, it will be very difficult for traditional futures companies with brokerage business. " The above double A-A futures company personnel said.

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