The scale of private equity management by securities firms has reached 5.75 trillion yuan, and the layout of "private equity+public equity" is accelerating
2024-10-16
Currently, securities asset management is continuously optimizing its structure, enhancing its proactive management capabilities, and actively establishing a "asset management+public fund" layout to enrich its asset management product portfolio and achieve complementary product advantages. Recently, the transformation process of securities firms' large collective products has also been accelerating, such as Guoyuan Securities choosing to change the manager of its large collective reference public fund transformation products. Meanwhile, the latest data shows that as of the end of August, the total scale of securities firms' private equity asset management was 5.75 trillion yuan (including asset management companies, excluding private equity subsidiaries, the same below), an increase of 442.985 billion yuan or 8.35% from the end of last year. At the same time, the scale of private equity asset management products established by securities firms in August reached a new high in the past year, demonstrating the vigorous development of securities firms' asset management business. The newly established scale in August reached a new high in nearly a year. Recently, the latest data released by the China Securities Investment Fund Industry Association showed that as of the end of August, the total scale of private equity asset management of securities firms was 5.75 trillion yuan, a decrease of 101.213 billion yuan or 1.73% from the end of July. Among them, the scale of securities firms' collective asset management plans, represented by active management, was 3116.598 billion yuan, a decrease of 39.153 billion yuan or 1.24% from the end of July. The proportion of securities firms' private equity asset management business scale increased from 53.96% at the end of July to 54.22%; The scale of a single asset management plan was 2.630973 trillion yuan, a decrease of 62.059 billion yuan or 2.3% from the end of July. Its proportion in the scale of securities firms' private equity asset management business decreased from 46.04% to 45.78%. From the perspective of product structure, fixed income products are still the absolute dominant products in securities private equity management, and their proportion has further increased, while the proportion of the other three types of products has decreased. As of the end of August, the scale of fixed income private equity asset management products of securities firms reached 4807.42 billion yuan, accounting for 83.64% of the total scale of securities firms' private equity asset management products, up from 83.38% at the end of July. The scale decreased by 69.401 billion yuan from the end of July, a decrease of 1.42%. During the same period, the scale of equity products was RMB 459.634 billion, accounting for 8% of the total scale of securities firms' private equity asset management products. The scale decreased by RMB 17.839 billion compared to the end of July, a decrease of 3.74%; The scale of mixed products is 447.546 billion yuan, accounting for 7.79% of the total scale of securities firms' private equity management products, a decrease of 12.925 billion yuan or 2.81% compared to the end of July; The scale of futures and derivative products was 32.97 billion yuan, and the proportion of the overall scale of securities firms' private equity asset management products was 0.57%, a decrease of 1.045 billion yuan or 3.07% compared to the end of July. From the situation of newly established products in August, securities firms filed 507 private equity asset management products with a scale of 49.558 billion yuan, accounting for 71.74% of the overall scale of securities firms' private equity asset management products. Meanwhile, August was the month with the highest monthly establishment scale of securities firms' private equity management products in the past 12 months, an increase of 19.858 billion yuan or 66.86% compared to July. Among them, 270 new collective asset management plans were established in August, accounting for 53.25% of the total, up from 49.38% in July; The establishment of 237 new single asset management plans has decreased from 50.62% in July to 46.75%, reflecting to some extent the transformation effect of securities firms in continuously improving their proactive management capabilities. From the perspective of industry structure, there are significant differences in the management scale of securities firms' private equity asset management products. As of the end of August, the average size of private equity management products managed by securities firms was 59.871 billion yuan, with a median management size of 23.555 billion yuan. Among them, there are 8 securities firms with a management scale greater than 200 billion yuan, 21 with a management scale between 50 billion yuan and 200 billion yuan, 20 with a scale between 20 billion yuan and 50 billion yuan, 29 with a scale between 3 billion yuan and 20 billion yuan, and 18 with a scale within 3 billion yuan. The transformation of large collection products is accelerating. Currently, securities asset management is actively implementing a dual round development strategy of public and private equity. According to the latest data from the China Securities Association, as of the end of the first half of 2024, the total scale of industry asset management business was 9.27 trillion yuan, a year-on-year increase of 1.17%. The proportion of collective asset management plans represented by active management and net asset value conversion, as well as the scale of public products, continued to increase. Among them, the scale of public funds (including large collections) was 1.06 trillion yuan, a year-on-year increase of 9.74%, and the proportion of scale reached 11.41%. The structure of asset management business continued to be optimized. However, in the securities industry, currently only 14 securities firms or their asset management companies have successfully obtained public fund licenses. Those securities firms that have not yet obtained licenses are facing an urgent issue, namely the expiration pressure of the large collective reference public fund transformation products (hereinafter referred to as "large collective reference public fund transformation products"). These large-scale public transformation products are designed based on the operation mode of public funds, and their contract period is usually limited to less than 3 years. Once the product expires, if the securities firm has not yet obtained a public fund license, they will have to choose between extending the product's lifespan, liquidating, or changing the product manager. According to Wind Information data, as of October 15th, the total scale of securities firms' large collective products reached 352.094 billion yuan. Recently, another securities firm has made a "decision" to change the management personnel of its large collective public participation transformation products. On the evening of October 14th, Guoyuan Securities announced that, taking into account the needs of shareholders and the long-term development of the collective plan, in order to fully protect the interests of shareholders, it has decided to convene a general meeting of collective plan holders through communication to review the proposal to change the manager of Guoyuan Yuanying's four month regular open bond type collective asset management plan to Guoyuan Securities' public subsidiary Changsheng Fund, and at the same time transform the product accordingly to "Changsheng Yuanying four month regular open bond type securities investment fund". This product was originally scheduled to expire on October 27, 2024. The above situation is not the first in the industry. In 2023, Fangzheng Securities also changed the management of its large collection products. In addition to changing the product manager, there are also securities firms that choose to extend the product's lifespan. On July 8th, CITIC Securities Asset Management announced that the "CITIC Securities Quality Life Hybrid Collective Asset Management Plan" and "CITIC Securities Wealth Preferred One Year Holding Hybrid Fund Fund (FOF) Collective Asset Management Plan" will be extended to January 15th, 2025 and January 21st, 2025, respectively. With the increasingly fierce market competition, securities firms have accelerated the establishment of asset management companies and the application for public offering licenses. Under the guidance of the "one participation, one control, one license" policy, they continue to improve their public offering business layout. On June 28th, Shouchuang Securities and Xinda Securities received feedback from the China Securities Regulatory Commission regarding their application to establish asset management companies. At the same time, Guangfa Asset Management, Guangzheng Asset Management, Anxin Asset Management, and Guojin Asset Management are applying for qualifications for public fund management business. Securities firms that have obtained public offering licenses are accelerating the transformation of large collective products. For example, China Merchants Securities Asset Management stated that the company was officially approved to carry out public fund management business in April this year. In the future, it will orderly promote the registration of existing large collective products as public funds, and promote the steady development of public fund business. Regarding the trend of accelerating the layout of securities asset management in the public offering track, Liu Jiawei, Chief Analyst of Non bank Finance at Dongxing Securities, said: "Controlling and participating in public funds provides a powerful lever for the transformation of securities wealth management and contributes considerable performance. Under the requirements of the new asset management regulations, various types of asset management institutions in the market compete on the same stage, requiring securities asset management to continuously and rapidly improve their proactive management capabilities. Expanding the scope of fundraising, vigorously developing collective products, promoting the public offering transformation of large collective products in accordance with regulatory trends, deeply participating in the public offering market, and actively applying for public offering licenses are necessary measures to cope with business transformation, and are also important levers for the construction of securities wealth management transformation product lines
Edit：Yao Jue Responsible editor：Xie Tunan
Source：Securities Daily
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