The China Securities Regulatory Commission will further improve the regulatory rules system for public funds, accelerate the revision of the “Measures for the Supervision and Management of Publicly Offered Securities Investment Fund Managers”, promote the improvement of fund company governance, highlight the strengthening of long-term incentive and restraint mechanisms, and strengthen the construction of industry culture. At the same time, we will further optimize the classification and registration mechanism for the conventional products of public offerings to create a good regulatory environment for the sustained and healthy development of the public offerings industry.
The Third Member Representative Conference of the China Securities Investment Fund Industry Association was held in Beijing on the 30th. The Chairman of the China Securities Regulatory Commission Yi Huiman delivered a speech at the meeting, and for the first time specifically and systematically elaborated on the high-quality development of the fund industry. Senior experts and practitioners in the industry believe that in recent years, my country’s fund industry has played an important role in serving the real economy and residents’ wealth management. Public funds have shown a good development trend, especially in terms of scale, structure, and investment income.
A reporter from the Shanghai Securities News learned from authoritative channels that the China Securities Regulatory Commission is speeding up the revision of the regulatory measures for public fund managers, and the regular product classification registration mechanism for public funds will also be further optimized on the original basis.
Public funds show a good development trend
Yi Huiman pointed out in a speech at the General Assembly of the Fund Industry Association that my country’s public offering fund industry started from pilot projects and developed rapidly. As an important institutional investor, it is playing an increasingly important role in the reform, development and stability of the capital market.
Authoritative statistics show that in recent years, my country’s public offering fund industry has shown a good development trend, which is mainly reflected in the following four aspects:
First, the scale of public funds and equity funds has increased rapidly. As of the end of July this year, the scale of assets under management of public funds reached 23.5 trillion yuan, an increase of 1.6 times from the end of 2016. Among them, the number of equity fund products and the scale of management reached 5,140 and 7.7 trillion yuan respectively, an increase of 1.2 times and 1.8 times respectively, both hitting historical highs.
Second, public funds continue to increase their investment in the stock market. As of the end of June this year, the value of the stock market held by public funds reached 6.1 trillion yuan, an increase of 314.7% from the beginning of 2019. As of the end of June, the market value of A shares held by public funds was 5.5 trillion yuan, accounting for 7.8% of the total market value of A shares.
Third, the scale of equity fund raising and the number of individual investor accounts reached new highs. In the first half of this year, the total scale of initial equity fundraising reached 1.3 trillion yuan, a year-on-year increase of 78.9%, setting a record high in the scale of fundraising in half a year. Among them, the total scale of products raised during regular opening or holding period was 700.6 billion yuan, a year-on-year increase of 103%. As of the end of June, the number of individual investors with equity funds holding balances was approximately 160 million, an increase of 38.6% over the same period last year.
Fourth, the overall return rate of equity funds outperformed the major stock indexes. Statistics show that the average annualized rate of return of equity funds in the past three years is about 21.2%, which is 11 percentage points higher than the increase of the Shanghai Composite Index over the same period.
The reform of the access system of public funds has achieved remarkable results
In order to vigorously promote the streamlining of administration and decentralization, the China Securities Regulatory Commission made a major reform of the registration mechanism for public fund products in October 2019, and decided to implement a classified registration mechanism for the conventional products of public funds.
In the past two years, the scope of fund managers applicable to the rapid mechanism has been gradually expanded, fund application materials have been further streamlined, and the efficiency of fund product registration has been continuously improved. On this basis, the supply of fund products has increased substantially, and the development vitality of the industry has been greatly released.
The reporter learned from the relevant departments of the China Securities Regulatory Commission that, under the arrangement of the regular product classification registration mechanism for public funds, the current registration period for fast-registration of conventional equity, hybrid, and bond products is in principle no more than 10 days, 20 days, and 20 days. Days; in principle, the registration periods for non-rapid-registered equity, hybrid, and bond conventional products are no more than 30 days, 45 days, and 45 days, respectively. These are far below the 6-month statutory audit cycle.
Statistics show that in the past two years, nearly 3,000 mutual fund products have been registered in the industry. In 2020 alone, the total raised scale of public funds will reach 3.16 trillion yuan, of which equity funds raised 1.55 trillion yuan, an increase of 64% and 300% year-on-year respectively.
Further improve the regulatory system of public funds
In his speech on the 30th, Yi Huiming stated that in order to promote the high-quality development of the fund industry, the China Securities Regulatory Commission will adhere to the main responsibility of supervision, continue to improve the fund supervision system, promote the development of various institutional investors, and continue to strengthen the long-term investment power of the capital market. Further improve supervision services, resolutely maintain an open, fair and just market order, and effectively protect the legitimate rights and interests of investors.
The reporter was informed that in the next step, in order to continue to enhance the public fund industry’s ability to serve the real economy and support the high-quality development of the industry, the China Securities Regulatory Commission will further improve the public fund regulatory rules system and accelerate the revision of the “Regulations for the Supervision and Management of Publicly Offered Securities Investment Fund Managers” Work, promote the improvement of fund company governance, highlight the strengthening of long-term incentive and restraint mechanisms, and strengthen the construction of industry culture.
At the same time, the China Securities Regulatory Commission will further optimize the classification and registration mechanism for conventional products of public offerings, and create a good regulatory environment for the sustained and healthy development of the public offerings industry.