Cao Yu, vice chairman of the Banking and Insurance Regulatory Commission: Rules such as the Interim Measures for the Administration of Fund Trusts are being drafted

The Paper's reporter Jiang Mengying

On September 26, Cao Yu, Vice Chairman of the China Banking and Insurance Regulatory Commission and member of the Party Committee, was held at the Shanghai Summit of the Global Wealth Management Forum.

Cao Yu, vice chairman of the China Banking and Insurance Regulatory Commission and member of the Party Committee, pointed out at the Shanghai Summit of the Global Wealth Management Forum (GMAF) on September 26 that the transformation and development of banking, insurance and asset management businesses have achieved initial results, and since the release of the new asset management regulations, the CBIRC has resolutely implemented the decision-making and deployment of the Party Central Committee and the State Council, and the asset management reform of the banking and insurance industries has been promoted in an orderly manner.

From the perspective of industry development, the total amount of asset management business remained stable, the structure was continuously optimized, there was no major ups and downs, as of the end of the second quarter of this year, the balance of banking and insurance asset management products was 45.6 trillion yuan, an increase of 1.6% over the beginning of the year, accounting for 55% of the total scale of the asset management market. Among them, the balance of bank wealth management is 24.5 trillion yuan, the balance of capital trust plans is 17.7 trillion yuan, the insurance asset management products are 3.4 trillion yuan, and 21 banks have been approved to set up bank wealth management companies. From the perspective of serving the real economy, the asset balance of asset management products directly allocated by banking and insurance institutions to the real economy is 34 trillion yuan, equivalent to about 13% of the scale of social financing.

Secondly, the asset management business system system continues to improve, after the release of the new asset management regulations, the Banking and Insurance Regulatory Commission has issued more than ten asset management supervision rules, basically building a more systematic asset management system framework, bank wealth management, issued the new rules for wealth management, wealth management subsidiaries management measures, wealth management subsidiaries net capital management measures and other supporting rules, we are formulating sales management rules and liquidity management rules, with bank wealth management companies as the focus of the system system is accelerating the formation.

In terms of insurance asset management, the CBRC has issued interim measures for the management of insurance asset management product business, and simultaneously formulated three supporting rules such as portfolio asset management products, bonds and equity investment plans, and built a 1+3 product supervision system framework; the CBRC has also actively promoted the revision of the interim regulations on the management of insurance asset management companies and the formulation of corporate supervision and rating measures, consolidating the foundation of the institutional supervision system and optimizing the regulatory mechanism.

In terms of trust business, the CBRC is drafting rules such as the Interim Measures for the Management of Fund Trusts, forming a risk prevention and control system with regulatory authorities as the main body, industry association self-discipline functions, trust registration companies, market constraint functions, trust guarantee funds, and guarantee mechanisms as the supplement.

The following is the full text of the speech:

Cao Yu: Distinguished guests, ladies and gentlemen, good morning! I am very pleased to participate in the Shanghai Summit of the Global Wealth Management Forum, and on behalf of the China Banking and Insurance Regulatory Commission, I would like to express my warm congratulations on the success of this conference! We would like to thank the Shanghai Municipal Party Committee and Municipal Government for their long-term strong support to the banking, insurance and regulatory work.

In February this year, the central financial management department and the Shanghai Municipal Government jointly issued opinions on further accelerating the integrated development of Shanghai's international financial center and financial support for the Yangtze River Delta, and put forward 30 specific measures, and the BANKING AND INSURANCE REGULATORY will conscientiously promote the implementation of the work.

I would like to take this opportunity to share a few views with you on the supervision of asset management business.

First, asset management has become an important part of the financial industry.

In recent years, the asset management business of China's financial institutions has developed rapidly, and has played an active role in enriching the supply of financial products, promoting the deepening of the financial market, and meeting the diversified needs of investors.

Looking back, the first batch of public securities investment funds were officially issued in 1998, the first wealth management products were launched by commercial banks in 2002, and insurance asset management companies were established in 2003. Over the past 20 years, the asset management business of the securities, banking and insurance industries has shown the characteristics of strong development momentum, active innovation and high degree of market-oriented specialization, and has achieved rapid development.

As of the first half of this year, the balance of asset management products of China's financial institutions was nearly 82.9 trillion yuan. The scale is about a quarter of the total assets of financial institutions, and a market pattern of division of labor, complementary advantages and benign competition in various asset management businesses such as banking, insurance, trust, securities and funds has gradually formed.

At present, the asset management business of China's financial institutions is entering a critical period of reform and transformation, improving quality and efficiency, first of all, the new regulations on asset management have clarified the direction for the development of industry norms, delineated the basic rules, and in asset management, asset management, and asset management have become the consensus and starting point in the industry.

Second, the steady accumulation of wealth of Chinese residents has provided a broad space for the asset management market. Gdp, in 2019 reached 99 trillion yuan, the national per capita disposable income of residents reached 15,700 yuan, the market predicts that in 2021, China's personal investable assets will reach 200 trillion yuan.

Third, deepening the reform of the financial industry has put forward higher requirements for the asset management industry, and the construction of a direct financing system, the continuous promotion of interest rate marketization, the enrichment of financial instruments, and the more flexible price of funds require the asset management business to take the initiative to give play to the advantages of high efficiency and transparency in the allocation of financial resources.

Banking, insurance, asset management business transformation and development of the initial results, since the release of the new regulations on asset management, the Banking and Insurance Regulatory Commission resolutely implement the decision-making and deployment of the Party Central Committee and the State Council, the banking and insurance industry asset management reform in an orderly manner, first of all, the asset management reform and transformation is progressing smoothly, the banking and insurance institutions and regulatory departments cooperate closely, while significantly reducing non-compliant products, and strive to achieve the pattern of serving the real economy without reducing, serving the role of the financial market unchanged, from the perspective of industry development, the total amount of asset management business remains stable, and the structure is continuously optimized. As of the end of the second quarter of this year, the balance of bank insurance asset management products was 45.6 trillion yuan, an increase of 1.6% over the beginning of the year, accounting for 55% of the total size of the asset management market. Among them, the balance of bank wealth management is 24.5 trillion yuan, the balance of capital trust plans is 17.7 trillion yuan, the insurance asset management products are 3.4 trillion yuan, and 21 banks have been approved to set up bank wealth management companies.

From the perspective of serving the real economy, the asset balance of asset management products directly allocated by banking and insurance institutions to the real economy is 34 trillion yuan, equivalent to about 13% of the scale of social financing.

Secondly, the asset management business system system continues to improve, after the release of the new asset management regulations, the Banking and Insurance Regulatory Commission has issued more than ten asset management supervision rules, basically building a more systematic asset management system framework, bank wealth management, issued the new rules for wealth management, wealth management subsidiaries management measures, wealth management subsidiaries net capital management measures and other supporting rules, we are formulating sales management rules and liquidity management rules, with bank wealth management companies as the focus of the system system is accelerating the formation.

In terms of insurance asset management, the Interim Measures for the Management of Insurance Asset Management Product Business have been promulgated, and three supporting rules such as portfolio asset management products, bonds and equity investment plans have been formulated simultaneously, and a 1+3 product regulatory system framework has been constructed.

In addition, we actively promote the revision of the interim regulations on the management of insurance asset management companies and the formulation of corporate regulatory rating measures, consolidate the foundation of the institutional supervision system, and optimize the regulatory mechanism.

In terms of trust business, rules such as the Interim Measures for the Management of Fund Trusts are being drafted to form a risk prevention and control system with regulatory authorities as the main body and industry association self-discipline functions, trust registration companies, market constraint functions, trust guarantee funds, and guarantee mechanisms as supplements.

The banking and insurance industries should firmly follow the road of professionalization, specialization and international asset management transformation.

The New Rules clearly stipulate that financial institutions whose main business does not include asset management business should set up independent subsidiaries to carry out asset management business and make institutional arrangements for the professional operation of asset management business.

At present, the banking and insurance industry asset management in the business philosophy, management system, capacity building and other aspects in the transformation stage, some institutions of the traditional business inertia thinking is still relatively heavy, suitable for asset management business management mechanism and investment and research capabilities to be improved, limited external exchanges, these problems in the development, the need for practitioners to be more proactive to do a good job in specialization, specialization, international construction.

We encourage the asset management business of the banking and insurance industries to adhere to the direction of professional development, asset management institutions are entrusted by others, manage wealth on behalf of others, strengthen investment and research capacity building, cultivate talent teams, improve special systems, strictly control internal control and compliance, and develop and grow into professional institutional investors.

We encourage the banking and insurance industry asset management institutions business, firmly take the characteristic development path, from the perspective of the entire financial industry, different asset management institutions in the management system, business philosophy, incentive and constraint mechanism, investment operations and talent reserves and other aspects of their own advantages and expertise, both detailed division of labor and cooperation, but also mutual competition to promote.

From the perspective of the banking and insurance industries, each institution needs to actively explore market positioning and strategic direction based on its own resource endowments, customer characteristics, professional focus and other elements, not blindly seeking to be large and complete, but also to develop medium and specialized, small and beautiful, we encourage the banking and insurance asset management business to unswervingly expand opening up to the outside world and deepen international cooperation.

In July 2019, the Office of the Financial Commission issued eleven measures to further open up the financial industry to the outside world, of which three directly involve asset management business, and the Current Banking and Insurance Regulatory Commission has approved the establishment of two foreign-controlled wealth management companies, both of which are registered in Shanghai, which also fully reflects the positive results and international attractiveness of Shanghai's construction of an international financial center, and we are stepping up to revise the interim regulations on the management of insurance asset management companies and cancel the provision that the total shareholding of domestic insurance companies is not less than 75%. Encourage foreign capital to initiate and participate in the establishment of insurance asset management companies.

Fourth, the Banking and Insurance Regulatory Commission will continue to strengthen the professional supervision of the asset management business of the banking and insurance industries, first of all, the protection of the legitimate rights and interests of investors is placed in a more important position, the mainstream customers of the asset management business of the banking and insurance industry come from bank savings and insurance customers, the risk preference is prudent and extensive, the professional investment and research capabilities are being cultivated, and the asset management institutions should take the appropriate management of investors as the core link of the asset management business to accurately assess the risk preference and actual bearing capacity, and sell the appropriate products to qualified investors. At the same time, more attention is paid to helping investors establish a scientific view of risk and return, reasonably shape investment expectations, and rationally view net worth fluctuations. In the process of international asset management business development, it is also fully demonstrated that the true transmission of product risks and returns to investors and the abandonment of unreasonable rigid payment mode are the essential laws of the sustainable development of asset management business and the only way in the transformation process of China's asset management business.

Secondly, strictly adhere to the bottom line of asset management business supervision risks, the CBRC will maintain policy determination, take the unified standards and reform direction established by the new asset management regulations as the criterion, seriously investigate and deal with violations of laws and regulations, and never allow the name of asset management business to return to the old road of irregular operation of capital pools, asset pools and so on. Coordinate the coordination system of prudent institutions and functional supervision, enhance the ability of specialization, unification, and standardization of supervision, encourage scientific and rational innovation, and whether it is conducive to supporting the real economy, whether it is conducive to preventing financial risks, and whether it is conducive to protecting the legitimate rights and interests of investors, these three are conducive to measuring, and resolutely crack down on deviations from the needs of the real economy, the pursuit of short-term benefits, opaque information disclosure, evasion of financial supervision and other pseudo-innovative and chaotic innovation behaviors.

Actively promote the construction of the third pillar of pension insurance, the current development of China's pension insurance system is not balanced enough, the proportion of the third pillar is low, the development of personal savings pension insurance and commercial pension insurance is not sufficient, at this stage to accelerate the development of the third pillar is very urgent, the financial industry can play a more important role, but the existing types of financial instruments in the market are short-term, do not have the function of old-age security, and there is still a big gap from the needs of the people.

From an international point of view, the third pillar is to expand the scale of pensions, enhance the flexibility of an important part, it is estimated that the United States personal commercial pension accounted for the proportion of domestic pension assets of the scale of 35%, the United Kingdom nearly 20%, Singapore and South Korea are higher than 40%, vigorously develop commercial pension finance for the cultivation of institutional investors, enhance long-term investment, value investment, promote the healthy development of the capital market is also of great practical significance.

We will further promote the accelerated development of pension finance, adhere to the people-centered, follow the laws of the pension financial market, closely focus on the long-term, safe and profitable essential characteristics of pension finance, fully mobilize the enthusiasm and creativity of financial institutions, enhance the collaboration of government departments, and promote the orderly and healthy development of the third pillar.

Ladies and gentlemen, the asset management business of the banking and insurance industry not only carries the pressure of reform and transformation to cope with the challenges, but also shoulders the glorious mission of serving the real economy and undertaking the people's property entrustment, hoping that all sectors of society will pay attention to and care for the growth of the asset management industry, the Banking and Insurance Regulatory Commission will continue to strengthen exchanges and cooperation with professional academic platforms such as the Global Wealth Management Forum, more smooth communication channels between government departments and all sectors of society, gather wisdom, gather consensus, and promote the healthy and sustainable development of asset management business, thank you!

Editor-in-Charge: Zheng Jingxin

Proofreader: Zhang Liangliang