Economic Observer Network reporter Huang Lei “Today’s implementation of the new regulations, the main impact after evaluation may be to guide customers to deploy long-term products. “A bank related business person told reporters.
On December 17, the China Banking and Insurance Regulatory Commission issued the “Measures for the Liquidity Risk Management of Wealth Management Companies’ Wealth Management Products” (hereinafter referred to as the “Measures”), which clarified and regulated the key points of wealth management products’ liquidity management and control, and issued an opinion draft on September 8 this year. After soliciting opinions, researching feedback, and improving the terms, it was able to land.
The “Measures” contains seven chapters and 45 articles, including general rules, governance structure and management measures, investment transaction management, subscription and redemption management, cooperative institution management, supervision and management, and supplementary regulations, which will be implemented five months after the date of issuance.
Influence
The above-mentioned business person told reporters that the main impact of the new regulations implemented today may be to guide customers to deploy long-term products. It may be more difficult for short-term products to maintain higher returns. Affected by short-term bond market volatility, there may be situations where the performance benchmark may not be met or the performance may be at a loss. In addition, the original needs of major customers to customize short-term products may not be easy to meet the requirements of Article 20 of the “Measures”.
Article 20 of the Measures stipulates that if a single financial product allows a single investor to hold more than 50% of the total share, it shall adopt a closed or regular open operation method, and the regular open period shall not be less than 90 days (cash management financial products except). The sales documents of the wealth management product shall be fully disclosed and clearly marked, and shall not be publicly sold to individual investors.
With regard to other wealth management products, if it is not due to the subjective factors of the wealth management company that breaks through the ratio limit specified in the preceding paragraph, the wealth management company shall not accept the investor’s subscription application for the wealth management product until the holding ratio of a single investor drops below 50%.
Dong Ximiao, chief researcher of China Merchants Union Finance, said that liquidity is one of the “three characteristics” of commercial banks, and liquidity risk is an important part of financial risk. For non-bank financial institutions such as wealth management companies, liquidity risk management is also crucial. In recent years, with the acceleration of the transformation of wealth management products to the net value, the association of wealth management products with the financial market and other asset management products has increased, and higher requirements have been placed on product liquidity management. With the lowering of the threshold of wealth management products, the number of investors in wealth management products has increased substantially. The investor structure based on individual retail accounts has brought new challenges to the liquidity management of wealth management products. Therefore, it is imperative to strengthen the liquidity risk management of financial products.
Improve the four clauses
The China Banking Regulatory Commission stated that the “Measures” fully absorb and adopt reasonable suggestions, follow the principle of consistent supervision of similar asset management products, consider the particularities of some wealth management products, and further refine relevant regulations in some clauses, while further clarifying specific operational requirements.
With reference to the previously issued opinion draft, after comparison, the “Measures” mainly revised and improved the following clauses:
1. Amend Article 18 on “Liquidity Restricted Assets” to clarify that private equity financial products issued to a single investor may not be subject to restrictions on the ratio of liquidity restricted assets.
2. Amend Article 19 on “Highly Liquid Assets” to clarify that publicly offered wealth management products with a regular open period of not less than 90 days should meet the requirements for the proportion of highly liquid assets within 7 working days of the opening day and the opening day.
3. Amend Article 25 of the “Daily Net Redemption” to clarify that private equity financial products issued to a single investor are not subject to the 7 working day realizable asset management requirements.
4. Amend Article 26 on “Huge Redemption” to clarify that the time base for calculating the total share of wealth management products in the Huge Redemption Regulation is the end of the previous day.Return to Sohu to see more
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