Nuggets Asset Management: The Old Love Of Banks

Sitting on huge deposits and massive customer resources.

Fund, trust, PE...

No one can be less.

China's banking industry in the field of asset management "

Banking Fund: tends to be dull.

The emergence of banking fund companies was a major event in the industry in 2005.

In April 6, 2005, approved by the State Council, the people's Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission identified ICBC, China Construction Bank and Bank of communications as the first pilot banks to set up fund management companies for direct investment.

ICBC Credit Suisse, Jianxin fund, Bank of communications Schroder quickly established.

This is seen by the industry as a landmark event for banks to move towards comprehensive operation.

"This is the need to comply with the trend of comprehensive management and improve asset management business by banks themselves."

Guo Tianyong, director of the banking research center of Central University of Finance and Economics, said that the huge profit of the fund industry was also an important reason for the bank to accelerate the development of the business.

Due to its strong shareholders and unmatched advantages, the birth of the banking fund has also caused pressure on other fund companies.

In the first batch of collection, ICBC Credit Suisse fund raised 4 billion 300 million yuan, the Bank of communications Schroder fund raised 4 billion 800 million yuan, and the construction fund was raised to 6 billion 200 million yuan.

The above advantages explode in the gloomy market in 2008.

In the big bear market of the year, the overall scale of ICBC Credit Suisse, Bank of communications Schroder and Jianxin fund rose sharply, of which the ICBC Credit Suisse scale rose to sixth, ranking among the second group army of the fund industry.

"Channels and customers are the biggest advantages of the bank fund."

Many fund industry people admit that this is also the most unscary part of non banking fund. In the bad bear market, it is difficult for non bank funds to compete with the banking fund in sales.

However, after more than 5 years of development, the banking sector fund has not been "industry shuffling" as expected by the industry, but gradually tends to be dull.

At present, the position of the AXA fund and the people's livelihood plus silver fund in the industry is almost at the bottom. ICBC's Credit Suisse, Bank of communications Schroder and Jianxin fund decline gradually, while the rest of the companies are hovering in the middle reaches.

Taking several state-owned banks' funds as an example, the malpractice of their state-owned banks' management system and poor marketization has been repeatedly criticized by the industry.

It is also argued that the steady and traditional business philosophy of the banking industry is not compatible with the rapid development of the capital market.

"For banks, the benefits of comprehensive operation are self-evident, which can increase the profit growth point, but how to do it well remains to be tested by time."

One bank believes.

In the view of the fund industry, bank funds are no longer detonating the "shells" of the industrial earthquake, and the market is ultimately the best touchstone.

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Banking Trust: obscurity

Similarly, the banking trust industry has been placed high hopes in the industry.

In June 2007, with the approval of the CBRC, the Bank of communications announced the reorganization of Hubei International Trust and Investment Co., Ltd., and established the Bank International Trust Co., Ltd. (hereinafter referred to as the "bank trust").

This is the first time that a state-owned bank has acquired trust companies since the implementation of separate operation in 1993. Therefore, it is not only regarded as a pilot project for the comprehensive operation of China's "bank credit cooperation", but also regarded as an important signal for the pformation of trust industry in China.

However, after three and a half years, the rumors of banks' trust in the trust companies are complicated, but most of them only hear the stairs and do not see people down.

In March 2009, the Construction Bank announced that the bank's investment in Hefei Xingtai Trust Co., Ltd. has been approved by the China Banking Regulatory Commission.

The bank announced that it invested 3 billion 400 million yuan to hold 67% of Xingtai trust and renamed it as Jianxin trust.

Subsequently, the four banks of China Merchants Bank, Everbright Bank, Xingye Bank and Minsheng Bank respectively discussed acquisitions with Tibet trust, Yunnan trust, Lianhua trust and Shaanxi Province.

But the effect is not satisfactory.

Media reports said that the Tibet trust, which was invested by China Merchants Bank, has not yet completed its restructuring after more than two years of acquisition.

"Trust company system is very flexible. It is the only financial institution that can cross the capital market, money market and industrial investment field at present, and the tentacles of trust companies can extend to every corner of the economy."

Chen Pengzhen, Institute of trust and financial management, Southwestern University of Finance and Economics, said.

In the industry view, this is the biggest attraction of attracting banks.

"In fact, the main purpose of banks to acquire trust companies is not to expand the scale, but to acquire the intangible assets of trust licences.

With the trust licence, the investment scope and business scope of banks have expanded a lot.

Chen Pengzhen believes that, especially in developing private banking business, banks can conduct portfolio investment in various fields and various ways, thereby minimizing the non systematic risks of investment. This also provides a very favorable opportunity for banks to expand high net worth customers.

However, due to the "historical reputation" of the trust industry is not good, and the relationship with the local government is intertwined, banks' bargaining and acquisition are more frustrations, "to a certain extent affect the emergence and development of the trust of the banking department."

A trust industry source said.

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Banking Department PE: thrive and thrive.

Compared with the "big thunder" of bank funds and banking trust, the emergence of PE in the banking sector is quite low-key, but with the rapid development of private equity funds in recent years, the business has been thrived.

According to the provisions of the commercial bank law, the mainland banks do not have the qualification of direct investment. Therefore, the state-owned commercial banks have adopted the operation mode of bypass overseas, that is, through the establishment of the investment bank subsidiaries in Hongkong, they will return to the mainland to invest in the shares and private equity funds of the unlisted companies, thus giving play to the bank's capital advantage and channel advantage, playing the role of managing the funds of the big clients of banks.

"PE is the top business in the investment banking industry, and the ambition of banks in this field is understandable."

PE industry believes.

At present, the banking sector PE is becoming the focus of attention in the industry.

PE, including BOC, ICBC, Jiayin international, Nong Yin international and state finance, has been launched in many fields. The total amount of PE raised is over 100 billion yuan.

For banks, cross selling between PE and loan department is the necessity of business integration.

The bank introduced the loan financing needs of loan customers to its PE, making the bank PE have high quality project resources.

At the same time, PE customers will also be asked to become clients of their parent banks, opening up the bank's customer resources.

However, the other side of the coin is cross selling which may cause cross infection.

The industry is concerned that such a comprehensive operation may bring cross risk and bring new challenges to regulation.