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The Public Offering Fund Will Soon Enter The Warring States Era.

2014/7/14 17:58:00 17

Public Offering Fund Registration System System

from the approval system to the registration system, China's public offering fund has finally taken a key step in the market operation. In the industry view, registration system will greatly enrich the public offering fund market product supply, and increase the competition level of the fund market. However, the further marketization of the fund market still needs a series of supporting measures, including sales and equity incentives. 
 change public fund is about to enter the era of registration 
 "operation method" is clear. The SFC's registration examination for fund raising is based on the complete requirements and content compliance. It takes the full disclosure of information and the appropriateness of investors as the core, and aims at strengthening the protection of investors' interests and preventing systemic risks. The CSRC does not make substantive judgments or guarantees on the investment value and market prospects of the fund. Investors should carefully read the information disclosure documents such as prospectus and fund contracts, independently judge the investment value of the fund, make investment decisions on their own, and bear the risk of investment on their own. 
 China Securities Regulatory Commission spokesman Deng Ge said that the formulation of the "operation method" mainly follows the guiding ideology of "strengthening supervision and deregulation": insisting on the institutional superiority of "joint investment, mandatory trusteeship, public disclosure, independent operation and strict supervision" of the public offering fund, strengthening supervision afterwards, increasing the investigation and handling of illegal activities, earnestly protecting the legitimate rights and interests of small investors, clarifying the relationship between the government and the market, implementing the product registration system of the fund, and fully stimulating the innovative vitality of market organizations. The CSRC will carry out the fund registration system mainly from the following aspects: adjusting the regulatory concept, reducing the intervention of micro activities, optimizing the licensing process and strengthening post event supervision. 
 up to now, the SFC will turn from product review to protection of investors and focus on information disclosure. Registration review is based on contractual compliance and risk disclosure, ensuring investors' right to know, highlighting the disclosure of effective information, and emphasizing the responsibility of market participants. It supports the market participants to independently design public offering funds around the needs of customers, and supports the rate structure of the binding between managers and investors, does not restrict the number of products issued, does not regulate the pace of examination, and does not interfere with the time of issue of products. 
 in the view of the industry, the publication of < a href= "//www.sjfzxm.com/news/index_c.asp > > operation method < /a > will greatly speed up the issuance of fund products and enrich the supply of the market. 
 Wang Qunhang, deputy general manager of Jinan letter Co., Ltd., Beijing, said that in the past, when issuing a fund product, it would take half a year from design, approval and approval to the issuance. If the registration system was implemented, the examination and approval time would be greatly reduced. Li Daxiao, director of the British Securities Institute, said that the registration of public fund products has opened the door to free distribution of products. The products supplied by the market will be richer and diversified, and the product line will be more perfect, which will increase the choice of investors. 
 has effect on 499 Mini fund tests: a href= "//www.sjfzxm.com/news/index_c.asp" > exit mechanism < /a > /strong > /p >
 data from the fund industry association show that as of the end of May 2014, there were 91 fund management companies in China, including 48 joint ventures, 43 domestic companies, 3 securities companies qualified for public fund management, and 5 trillion and 427 billion 403 million assets in management. The number of public offering funds is 1689, with a net value of 3 trillion and 924 billion 100 million yuan. From the perspective of fund type, there are 1548 open-end funds, of which 643 are stock funds, mixed funds, bond funds, monetary funds and QDII funds, and the number of open-ended funds is 643, 332, 368, 120 and 85 respectively. 
Less than P data showed that as of the end of June 2014, the total net value of the 1712 funds was 3 trillion and 610 billion yuan, with an average size of 2 billion 108 million yuan. Among them, the scale of net worth is less than 200 million yuan, that is, 499 of the threshold set up by the general fund, accounting for nearly 30%; up to 133 of the 50 million yuan warning line has nearly doubled compared with 69 at the end of last year. Among the "mini funds", the smallest 10 funds in the year net value is less than 10 million yuan, the smallest is only 2 million 440 thousand yuan. 
 in large and medium-sized fund companies, there are 18 funds in Huaan and Taibei, which are below 200 million yuan. Huitianfu, Dacheng and GF have 17, 15 and 13 funds below 200 million yuan respectively. Haitong, Jiashi, Xincheng, Yinhua and merchants all have 12 Mini funds, while Peng Hua, Changsheng, Bo Shi, Jianxin and Shanghai Morgan fund have 10 Mini funds respectively. Schroder and fidelity funds respectively have 7 and 6 funds under the scale of 50 million yuan, Cathay Pacific, Shanghai Morgan and Chang Sheng each have 5, and new money Mellon west 4 funds have 3 net worth less than 50 million yuan. 
< < operation > > it is clear that in addition to the launching fund, the fund managers should disclose the number of fund holders less than 200 or the net asset value of the fund below 50 million yuan for 20 consecutive working days. The fund managers should disclose them in the periodic reports. The fund managers should report to the CSRC and propose solutions, such as changing the mode of operation, merging with other funds or terminating the fund contracts, etc., and convene the general meeting of the fund holders to vote. 
 in accordance with the above provisions, the net assets of 50 million yuan will become a red line of the fund's liquidation. However, in the field of public fund, there is still no precedent for liquidation. In the industry view, this is not normal. 
Dai Hongkun, chief analyst of Shanghai securities fund research center, said that the annual open-ended fund in the United States is about 5%. In 2011, there were 580 newly established mutual funds in the United States, 292 of which were merged, and 194 funds were liquidated. In his view, fund merger or liquidation, in general, has a positive impact. For fund companies, the strategy of expanding the scale through multiple funds is not sustainable. Avoiding trap of innovation is very important to the competition strategy and market position of the fund company. Meanwhile, when the production line becomes bloated, it needs to be properly cleaned up. 
 "if you send it out, you can send it." Yang Delong, chief strategist of the southern fund, told the economic reference daily that after the implementation of the registration system, the number of public offering funds will continue to increase in the future, and the scale of issuance will continue to shrink. Over the past two years, there has been a lot of "mini funds". Many products have to go through the help of funds to make up the scale of 200 million yuan. Now, many fund products are busy with "saving themselves". He expects that the first "winding up" fund will be possible in the near future. 
 expectation < a href= > //www.sjfzxm.com/news/index_c.asp > fund market < /a > operation still need supporting measures /p >
 in addition to the need to improve the exit mechanism, in the view of the industry, there are still many obstacles, such as sales channels and equity incentives, in the market-oriented operation of public funds. 
 data show that as of the end of 2013, the scale of public fund management in China ranks tenth in the world, accounting for only 1.6% of the world's total, and the ratio of assets to GDP of the fund company is only 7.4%, far below the level of the mature market and major emerging markets. At the same time, China's public fund holders accounted for no more than 5% of the total population. The market capitalization of fund shares accounted for only 5.5% of the total market capitalization of A shares, and the scale of fund assets accounted for only 1.5% of the total assets of financial assets. 
 in Yang Delong's view, in addition to the marketization of the issuing market, another urgent problem to be solved in the marketization operation of public funds is sales channels. At present, the sales of fund products are still mainly dependent on banks, and the proportion of brokerage channels, third party sales and online direct selling is relatively small. In the future, fund sales may also be gradually liberalized, such as allowing insurance companies to sell funds, or set up special fund sales companies to issue sales funds, so as to achieve diversification of distribution channels. Data show that 72 fund companies, a total of 1731 public offering products in 2013, the overall profit of 168 billion 693 million yuan, the 1321 funds included in the statistics in 2013, a total of 4 billion 856 million yuan to the sales agency to pay customer maintenance costs (that is, follow up Commission), accounting for 18.97% of management costs. 
 in the internal governance of fund companies, equity incentive is also gradually mature. Earlier, the Fund Industry Association issued the "outline of the development plan for the asset management industry (Draft)", proposed that we should constantly improve corporate governance, enhance the professional ethics of employees, advocate diversified governance models, and establish long-term incentive and restraint mechanisms such as employee stock ownership. Zhuang Xin, vice chairman of the China Securities Regulatory Commission, said that the incentive and restraint mechanism of the fund industry will be improved in the future to fully stimulate the vitality of intellectual capital. 
 Yang Delong said, so far, there are few public fund companies that really realize equity incentive. "Now the brain drain of public offering funds is particularly serious, and equity incentive is the most important way to retain talents in the industry." He said that the equity incentive of fund companies is still lacking enough definite and operable institutional arrangements. The implementation of fund companies is bound to be constrained and difficult.