Home » New Asset Management Regulations Come to an End, Banks’ Wealth Management Earning Nearly Trillion in 2021 | New Asset Management Regulations

New Asset Management Regulations Come to an End, Banks’ Wealth Management Earning Nearly Trillion in 2021 | New Asset Management Regulations

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New Asset Management Regulations Come to an End, Banks’ Wealth Management Earning Nearly Trillion in 2021 | New Asset Management Regulations


Original title: New regulations on asset management come to an end, and bank wealth management will earn nearly trillion in 2021

Introduction:The 2021 bank financial report card will be released, and the industry will usher in a new era of development.

  Text / Institutional Investor Zhang Jing

With the promulgation of the “New Regulations for Asset Management” in 2018, “breaking the just exchange, removing the channel, and removing the non-standard” has become the most urgent rectification requirement for the asset management industry. For bank wealth management products, the transformation of net worth and the clearing of non-standard assets have quickly become the top priority. “Institutional Investor” statistics found that since 2018, 6 major state-owned banks, 12 major commercial joint-stock banks and city commercial banks have successively established 23 wealth management subsidiaries, undertaking bank wealth management products with a scale of over 28 trillion.

2021 is the final year of the transition period for new asset management regulations. At this point, the development of my country’s bank wealth management products has also reached a new level, and large asset management has officially entered a new era.

On February 26, the Banking Financial Management Registration and Custody Center issued theBank of ChinaAccording to the Annual Report on the Industrial Financial Management Market (2021) (hereinafter referred to as the “Report”), by the end of 2021, the scale of my country’s bank financial management market will reach 29 trillion yuan, a year-on-year increase of 12.14%; The funds raised were 122.19 trillion yuan.

Regarding the effect of the transformation and reform of bank wealth management during the transition period, the “Report” stated that: under the supervision guidance of initiative and net worth established by the new asset management regulations, the rectification tasks of the bank wealth management business during the transition period were basically completed, and the overall performance was in line with expectations.

In fact, in terms of the purpose of rectification or “reform” in recent years, the core is to return asset management to its origins, to clear risks, and to prevent risk accumulation in the context of just exchange. On the product side, this problem is concentrated in the behavior of “guaranteing principal and income, and rigid payment”. Therefore, from the perspective of ordinary investors, the most intuitive feeling brought about by the change is that the product will no longer guarantee the principal and interest, and the income will no longer be determined.

  Capital-guaranteed wealth management exits, and net worth wealth management exceeds 90%

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Starting from the purpose of the reform, the “zeroing of capital-guaranteed products” is one of the most important results.

The “Report” shows that by the end of 2021, the rectification tasks for the transition period of bank wealth management business have been basically completed. The scale of capital-guaranteed wealth management products has been reduced from 4 trillion yuan when the new asset management regulations were released to zero. The proportion of net worth products has increased significantly. By the end of 2021, the balance of net worth wealth management products will be 26.96 trillion yuan, accounting for 92.97%, an increase of 23.89 trillion yuan compared with before the release of the new asset management regulations. Therefore, some people say that big asset management has officially entered a “new era of net worth”.

At the same time, “Institutional Investor” found that interbank financial management has decreased significantly. As of the end of 2021, interbank wealth management has dropped to 54.1 billion yuan, down 97.52% from before the release of the new asset management regulations.

With the completion of the rectification of existing businesses, the regulatory framework has been increasingly improved, and the construction of wealth management subsidiaries has been steadily advanced. The “Report” pointed out that by the end of 2021, the product surviving scale of “clean start” wealth management companies accounted for nearly 60% of the total market.

From the perspective of investment in wealth management products, bonds are still the main allocation assets of wealth management products. Specifically, by the end of 2021, the proportion of bond assets held by wealth management products increased by 4.13 percentage points compared with the same period last year, and an increase of 19.43 percentage points compared with the release of the new asset management regulations; the proportion of non-standardized debt assets held by wealth management products decreased by 6.58 percentage points compared with the same period last year. percentage points, a decrease of 14.80 percentage points compared with the release of the new asset management regulations; the proportion of equity assets held decreased by 1.48 percentage points compared with the same period last year, and a decrease of 9.03 percentage points compared with the issuance of the new asset management regulations.

In terms of the types of bonds allocated, wealth management products held 815.17 trillion yuan of credit bonds, accounting for 48.13% of the total investment assets, an increase of 0.38 percentage points over the same period last year.

In terms of rating, the scale of AA+ and above credit bonds held by wealth management products reached 12.75 trillion yuan, accounting for 84.05% of the total scale of credit bonds held, accounting for an increase of 0.69 percentage points compared with the same period last year.

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  Last year, the average annualized rate was the highest at 3.97%, with an income of nearly 1 trillion

As an ordinary investor, the most concern is the income aspect. The “Report” shows that in 2021, wealth management products will generate nearly 1 trillion yuan in income for investors. Among them, the wealth management subsidiaries accumulatively created income for investors increased by 4.22 times year-on-year.

Since December 2018, 29 wealth management companies have been approved for establishment, and 24 have been approved to open.

In each month of 2021, the weighted average annualized rate of return of wealth management products will be the highest at 3.97% and the lowest at 2.29%. In general, products that are relatively sensitive to market fluctuations are mainly long-term and closed-end, while asset allocation strategies are mostly “fixed income +”. Although the net value of products may be affected by market fluctuations in the short term, long-term returns are still stable.

In terms of product risk rating, by the end of 2021, the scale of wealth management products with a risk level of 2 (low-medium) and below was 24.06 trillion yuan, accounting for 82.97%; The product scale is 0.11 trillion yuan, accounting for 0.37%.

In addition, Institutional Investor also noted that the term of wealth management products has been continuously extended, which can provide the market with a long-term and stable source of funds. Last year, the proportion of surviving balances of closed-end products for more than one year continued to rise, and by the end of 2021, the proportion was as high as 62.96%; short-term closed-end wealth management products within 90 days were cleared.

  Joint-stock banks have leading wealth management profitability

In order to facilitate investors’ intuitive experience and clarify the wealth management profitability of each bank, “Institutional Investor” quoted the “2021 Fourth Quarter Bank Financial Management Ability Ranking Report” of the Puyi Standard as a reference and comparison.

The report shows that in the fourth quarter of 2021, the number of non-principal guaranteed wealth management products of commercial banks (excluding foreign banks) in the market in the fourth quarter of 2021 was 51,742, a decrease of 1,910 from the third quarter of 2021, and a month-on-month decrease of 3.56%; The number of non-guaranteed wealth management products in existence was estimated to be 28.56 trillion yuan, up 6.04% from the previous quarter.

Data shows that Bohai Bank ranks first among national banks.HSBC Bank,ChinaEverbright BankPing An BankCITIC BankIndustrial Bankbehind.

In terms of city commercial banks,Bank of NanjingBank of NingboHuishang Bank, Tianjin Bank,Bank of Jiangsuin the top five.

In terms of rural financial institutions, Hangzhou United Rural Commercial Bank, Chongqing Rural Commercial Bank, Chengdu Rural Commercial Bank, Jiangxi Jiangnan Rural Commercial Bank, and Guangzhou Rural Commercial Bank ranked the top five.

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It is worth noting that the profitability performance of rural financial institutions varies greatly, and the differentiation is obvious. With the end of the transition period of the new asset management regulations, many rural financial institutions with small wealth management scale and poor ability to control the fluctuation of net worth products and income may withdraw from the wealth management market one after another, which may also cause a gap in the industry’s profitability in the future. Expand further.

In fact, for small and medium-sized banks that have been difficult to form wealth management business advantages for a long time, they may gradually return to their origins and focus on their main business under the guidance of the market. In the future, small and medium-sized banks are likely to use agency sales of wealth management products as a new choice for the development of wealth management business models, and become an important force in agency sales of wealth management products.

The “Report” also analyzed that under the background of accelerating the construction of a new domestic and international “dual circulation” development pattern and deepening the structural reform of the financial supply side, the banking wealth management industry is entering a new stage of quality improvement and upgrading. Therefore, looking forward to 2022, the banking wealth management industry may face greater development space and opportunities.

In terms of regulatory approval, the China Banking and Insurance Regulatory Commission will continue to steadily promote the approval of wealth management companies, conduct operational evaluations of established institutions, actively explore ways for small and medium-sized banks to participate in the asset management business, implement policies to expand opening up and introduce foreign capital, and build various exhibition venues. An ecosystem with long-term, organic cooperation and coexistence will continue to strengthen professional supervision.

In terms of capital investment, in 2022, the banking wealth management industry will continue to improve the professionalism, efficiency and flexibility of asset allocation, give play to the characteristics of large scale and long term of bank wealth management products, and guide funds into key links and core areas of the national economy.

Massive information, accurate interpretation, all in Sina Finance APP

Responsible editor: Li Linlin

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