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Pi Haizhou: How likely is the 22 trillion bank wealth management products to enter the stock market?

October 08, 2018 08:57
Author:Pi Haizhou
source: Chongqing Morning News
edit:Eastern Fortune Network

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Following the publication of the consultation draft on July 20, "CommercialbankThe official draft of the Measures for the Supervision and Administration of Financial Management (hereinafter referred to as the “Administrative Measures”) was promulgated on September 28 and officially implemented from the date of publication. This means that bank wealth management products with a scale of more than 22 trillion yuan have their own new regulations.

This is a matter of excitement for many A-share market investors and industry insiders. Because the "management method" opened a hole for bank wealth management products to enter the stock market. Not only allows banks to privately finance products to conduct stock investment in accordance with the contract, but also allows banks to publicly raise wealth management products for indirect or direct stock investment. Among the investment scopes of commercial bank wealth management products as stipulated in Article 35 of the “Administrative Measures”, “public equity investment funds” and “equity assets” are included. The former is indirect stock investment, while the latter is direct stock investment.

According to the arrangement of the China Insurance Regulatory Commission, in the next step, after the bank conducts wealth management business through its subsidiaries, it allows the publicly-funded wealth management products issued by the subsidiaries to directly invest or indirectly invest in stocks through other means. The relevant requirements are in the “Administrative Measures for Commercial Banking Financial Subsidiaries”. Specific provisions. In short, with the introduction of the “Management Measures”, bank wealth management products can enter the stock market. This is obviously a major positive for the A-share market.

As a result, many investors and market participants will be imagining the 22 trillion yuan of bank wealth management products. After all, the 22 trillion yuan of bank wealth management products are not a small amount. If these 22 trillion bank wealth management products can be fully Flowing to the stock market is enough to make the A-share market usher in a big bull market. This is also the reason for the introduction of the “Management Measures”, which are very exciting for some investors and industry insiders.

Then, will 22 trillion yuan of bank wealth management products enter the stock market? Personally, the current 22 trillion yuan of bank wealth management products are unlikely to enter the stock market. Although from September 28th, the “Management Measures” allowed bank wealth management products to enter the stock market, there are still obstacles to entering the stock market for stock banking products. Because before this, bank wealth management products could not enter the stock market investment, so the 22 trillion yuan of stock wealth management products, the contract apparently did not carry out the content of stock investment. Therefore, according to the contract, the 22 trillion yuan of bank wealth management products cannot be invested in stocks.

Some people may say that the relevant contracts corresponding to the 22 trillion yuan of bank wealth management products can be revised, but it is very difficult to modify the contract after all. After all, investors originally purchased bank wealth management products and pursued a sound investment income from bank wealth management products. If you want to modify the contract for stock investment, this is probably not acceptable to many investors. Because investors want to invest in stocks, they would not have chosen bank wealth management products at the beginning. They can choose investment funds, especially stock investment funds. In fact, stock-based investment funds are the most widely used fund varieties in the market. Therefore, for existing bank wealth management products, it is very difficult to modify the contract for stock investment.

Moreover, from the perspective of banks, there is also a lack of enthusiasm for modifying contracts. On the one hand, the lack of money-making effect in the stock market, the lack of enthusiasm for bank wealth management products to enter the stock market. On the other hand, as a professional investment, the managers of bank wealth management products have their own strengths. If you want to invest in stocks, you must have a corresponding investment manager. And a good investment manager can't find it casually, let alone a large number of investment managers. Therefore, if there is a good stock investment manager, from the perspective of bank wealth management, it is more appropriate to set up new wealth management products instead of turning into the original bank wealth management products.

For this reason, although the “Management Measures” has opened the door for bank wealth management products to enter the stock market, the existing 22 trillion yuan of bank wealth management products are unlikely to enter the stock market. Those who can enter the stock market will be new bank wealth management products. Because in the contract of the new bank wealth management products, the stock investment matters can be clarified. Investors can also decide to deny the purchase of the corresponding wealth management products.

Not only that, although the “management method” allows bank wealth management products to invest in stocks, even the newly issued bank wealth management products are not all capable of stock investment. The main factors that can invest in stocks are equity wealth management products and mixed wealth management products. Fixed-income wealth management products and commodity and financial derivatives wealth management products cannot be invested in stocks. And based on the issuance status of investment funds,Equity fundIt is the fund that is most neglected by the market. Then, corresponding to this, bank wealth management products that can invest in stocks will likely become the slowest development of bank wealth management products. Therefore, although the “management approach” has been introduced, the market does not have to be too optimistic about the bank’s wealth management products entering the stock market.

 

                (Editor: DF386)

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