"After the launch of the new asset management regulations in 2018, the bank's financial management business is required to transform to corporatization and net worth. The market is valued according to net worth management. Fluctuation may be a trend and a normal." At the performance conference of China Merchants Bank in 2021 on March 21, Wang Liang, executive vice president of the bank, responded to the recent "net breaking" of bank financial products.
After breaking the rigid cashing, the bank financial products moving towards "real asset management" will face many tests in the market. In the face of the first "big test" brought by net worth, how can banks and financial management companies give satisfactory answers? For investors, should bank financial products also be used as a "safe haven" for investment?
Frequent market fluctuations
More than 2000 financial products fell below the net value
Recently, there have been frequent fluctuations in the financial market, and even the bank financial management known for its "stability" has not been spared. There has been a certain net value withdrawal, and the number of "broken net" products is still increasing slightly.
In view of the withdrawal of the net value of financial products, recently, 10 bank financial companies such as ICBC financial management, CCB financial management and bocom financial management issued a "letter to investors" to explain the reasons for the fluctuation of the net value of financial management and other issues of concern to investors.
Industry experts generally believe that the recent net value withdrawal of bank financial products is the result of the joint action of many factors. Among them, there are not only external factors affected by the macro market environment, but also internal reasons such as the adjustment of net worth disclosure method and valuation method after the formal implementation of the new asset management regulations.
"Under the fluctuating environment of the whole financial market, the withdrawal of the net value of bank financial management is a normal response." Dong ximiao, chief researcher of Zhaolian finance, told the financial times, "after the outbreak of the conflict between Russia and Ukraine, the volatility of the global financial market intensified, the domestic stock market and bond market also fell unilaterally, and it is difficult for the bank financial management market to be alone."
The formal implementation of the new regulations on asset management has also had a certain impact on bank financial management. At the end of 2021, with the end of the transition period of new asset management regulations, net worth financial products comprehensively replaced expected income financial products, and the valuation method of products changed. Different from the previous valuation method of amortized cost, net worth financial products use the net worth method to value the products.
"On the one hand, it can more truly and transparently reflect the operation of products; on the other hand, when the market fluctuation increases, the net value method will accurately and unreservedly reflect the market fluctuation and bring about the adjustment of product net value." The person in charge of xingyin financial management told the financial times.
In addition, the increase of equity products in bank financial products also led to the fluctuation of its net value. Relevant data show that by the end of 2021, the scale of equity assets in bank financial management had reached 1.02 trillion yuan, accounting for 3.27%. Among them, fixed income, mixed products and other products have the allocation of equity assets.
