The new regulation of "one participation, one control and one card" will accelerate the transformation of asset management and public offering of local securities companies
2022-05-25
Recently, the CSRC officially issued the measures for the supervision and administration of managers of publicly offered securities investment funds and its supporting rules (hereinafter referred to as the measures). The introduction of the management measures marks the official landing of the long-awaited "one participation, one control and one license" in the industry, that is, the same subject can apply for another public offering license on the basis of participating in and holding a fund. Previously, many securities companies have made preparations for applying for public offering licenses. Zhou Yingjie of Tianfeng Securities said that the application for public offering license by asset management of securities companies will be further accelerated, and the expansion of public offering license will bring new business increment to securities companies. Under the guidance of differentiated development, the profitability of head fund companies will continue to improve, and the securities companies participating in and holding large public funds will benefit the most. Long awaited new regulations Finally landed Insiders told the securities times that the new regulations mainly relaxed the "one license" and "one participation and one control" before. Now the requirements for applying for public offering license have been adjusted appropriately. The reporter noted that the drafting notes of the administrative measures indicated that the restrictions on the number of public offering licenses held by the same subject should be moderately relaxed. Specifically, on the premise of continuing to adhere to the policy of "one participation and one control" of fund management companies, moderately relax the restrictions on the number of public offering licenses, and allow professional asset management institutions such as securities asset management companies, insurance asset management companies and bank financial management subsidiaries under the same group to apply for public offering licenses. For securities companies, even if they have "one participation and one control", they can still continue to apply for public offering licenses. In fact, as early as July 2020, when soliciting opinions, the administrative measures said that the restriction of "one participation and one control" should be appropriately relaxed to allow the same subject to control a fund company and a public offering Licensee at the same time. At that time, the market looked forward to the early implementation of the new regulations. Western Securities believes that the promulgation of the "management measures" constitutes a major positive impact on the asset management of securities companies. In the past two years, asset management of securities companies have set up subsidiaries, and the public fund business has become the direction of transformation. Capital Securities said that under the new regulations, the asset management companies of securities companies that have held fund companies, such as CITIC Securities, Haitong Securities and GF Securities, can apply for public offering licenses, which is conducive to the conversion of stock large aggregate products into public offering funds and improve the active management scale of securities companies. Moreover, allowing more securities companies to join the public offering market will intensify the competition in the public offering fund market and help improve the overall service quality of the industry. Asset management of some securities companies Preparation for public offering transformation According to the website data of the fund industry association, the total number of fund managers is 154, including 138 fund companies, 8 securities companies, 6 securities companies and 2 insurance companies. The above 14 securities companies are licensed institutions, including Dongxing securities, Guodu securities, Shanxi securities, BOC securities, Huarong securities, Beijing Gaohua securities, Bohai Huijin asset management, CAITONG asset management, Huatai asset management, Dongfang asset management, Changjiang asset management, Zheshang asset management, Zhongtai asset management and Guotai Junan asset management. Previously, subject to the requirements of "one participation and one control", head securities companies such as CITIC Securities, China Merchants Securities, Haitong Securities, Galaxy Securities and China CITIC construction investment and their asset management companies did not have public offering licenses. Now, some of the above-mentioned securities companies are ready to apply for public offering licenses and start the transformation of public offering. At present, CITIC Securities has controlled Huaxia Fund and is qualified to apply for public offering license under the new regulations. CITIC Securities has also made preparations in this regard. In August 2021, the extraordinary general meeting of shareholders of CITIC Securities passed the proposal to establish an asset management subsidiary. The business scope of CITIC Securities Asset Management subsidiary includes public offering business. Among them, the public offering business can only be applied after the promulgation of relevant laws and regulations. The situation of CSC is similar. CSC securities holds 100% of the shares of CSC fund, and can also apply for a public offering license in accordance with the provisions of "one participation, one control and one license". In April last year, CSC announced that in order to comply with the development trend of the industry and expand and strengthen the asset management business, it planned to invest no more than 2.5 billion yuan to establish a wholly-owned subsidiary asset management company. The business scope of asset management company includes public offering business. Among them, the public offering business will be applied after the promulgation of relevant laws and regulations. In addition, the reporter noted that Guosen Securities and Guolian securities also threw out plans to establish an asset management company. According to the CSRC website, the establishment of asset management companies by six securities companies, including CITIC Securities, CICC, CSC, Guojin securities, Huachuang securities and Shenwan Hongyuan, is under examination and approval. One of the purposes for some securities companies to set up asset management companies is to win the public offering license. It is understood that the public offering business contributes significantly to the profits of some securities companies. According to the annual report data of 2021, in 2021, huitianfu fund and asset management of China Eastern securities accounted for 48.8% of the net profit of its holding broker Dongfang securities, Jingshun Great Wall Fund contributed 43.3% to its holding broker Great Wall Securities, and ChuangJin Hexin fund contributed 42.7% to the first venture of its holding broker. Public offering transformation faces challenges Asset management of securities companies has been engaged in private placement business for a long time. Now, although the application for public offering license has been liberalized, the operation of public offering is completely different from private placement. For the asset management of some securities companies, this is an opportunity, but there are also many challenges. Some asset managers said that for the asset management of most securities companies, the so-called difficulties are actually "late developing disadvantages". Some large public funds have developed for a long time, are more mature in investment and research accumulation, and have more accumulation in brand construction, which are all places that need to be caught up. From the perspective of challenges, the asset management of most securities companies lacks the accumulation of investment and research culture of relative income, and the accumulation of public offering customers and channels is insufficient. These are the shortcomings that need to be made up. An asset manager of a securities firm in South China told reporters that in the process of public offering transformation, investment research will be the starting point to create an investment research capability and strategy system that meets the requirements of public offering business. In the process of developing private placement business in the past, the company's asset management has accumulated rich experience in customized services. It will promote product innovation in public offering business and meet the needs of customers for various investment and research services. However, on the other hand, the public offering transformation of asset management of securities companies also has certain advantages. "From the perspective of resource endowment, there are no insurmountable difficulties and obstacles for the asset management of securities companies to carry out public offering business. Compared with the asset management business of banks, insurance, trust and other institutions, the asset management of securities companies is closest to the public offering fund from the shareholder background to the corporate culture, and the implementation of incentive mechanism will not have substantive obstacles, or even have more advantages." A medium-sized securities firm asset manager said. (Xinhua News Agency)
Edit：He Chuanning Responsible editor：Su Suiyue
Source：Xinhua
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