Regulatory News
1. The China Securities Regulatory Commission issued 10 fines! 6 securities companies involved, and overseas business violations became the "hardest hit area"
1. The China Securities Regulatory Commission issued 10 fines! 6 securities companies involved, and overseas business violations became the "hardest hit area"
On June 10, the China Securities Regulatory Commission announced 10 fines in one go, involving 6 securities companies including CICC, Everbright Securities, CITIC Securities, Cinda Securities, Haitong Securities and Guorong Securities. Another 8 securities practitioners were taken administrative supervision measures.
This is a routine summary of regular fines for securities companies, especially investment banking business by the China Securities Regulatory Commission. Since the beginning of last year, the China Securities Regulatory Commission has regularly summarized the administrative supervision measures and self-discipline punishment measures taken by relevant departments, dispatched agencies, self-discipline organizations, etc. on securities companies' investment banking business business in accordance with the law. It will be announced quarterly on the disclosure platform for violation penalty for investment banking business. Previously, hundreds of regulatory information have been released in a concentrated manner. Relevant personnel from the China Securities Regulatory Commission said that they will increase supervision and law enforcement efforts, focus on improving the system and rules system, strengthen market reputation constraints, and promote investment banks to take the initiative to return to their positions and fulfill their responsibilities.
The CSRC has taken administrative supervision measures to issue a warning letter to CICC. The China Securities Regulatory Commission found that CICC had a return subsidiary Tianjin Jiacheng Investment Management Co., Ltd. was engaged in CICC's own real estate investment and development projects. At the same time, 46 redundant special purpose entities (SPVs) failed to complete the cleaning within the specified time limit, and 22 SPVs did not complete the level up within the specified time limit.
Everbright Securities is because the immigration services engaged in by its overseas subsidiary China Sunshine Fuzun Immigration Services Co., Ltd. do not fall into the scope of financial-related business, and the existing business has not been cleaned up. The overseas subsidiaries have not been urged to complete the liquidation of their equity (partnership shares) of OP EBS Fintech Investment Limited, Northeast Special Steel Group Co., Ltd., and Qiqihar Guohong Investment Center (Limited Partnership). The cancellation of at least one subsidiary and one special purpose entity (SPV) was not completed on schedule, and the hierarchical adjustments of 11 subsidiaries and three SPVs were not effectively compressed.
In addition, CITIC Securities, Cinda Securities and Haitong Securities were all issued administrative supervision measures for violations of overseas business.
Guorong Securities was mainly because when serving as the financial advisor for the major asset restructuring of Shanghai Zhongji Pile Industry Co., Ltd., it did not conduct prudent verification of the revenue of the target assets, related transactions and external guarantees of listed companies during the sale of Shanghai Fukong Interactive Entertainment Co., Ltd.
In this regard, the CSRC stated that it always attaches great importance to the quality of investment banking business, and takes multiple measures to urge sponsors to return to their posts and fulfill their responsibilities, and keep a good "entry gate" of the capital market. Establishing and improving the information disclosure mechanism for the violation of investment banking business and strengthening market reputation constraints is one of the important measures.
2. China Securities Investment Association issued guidance on performance appraisal and salary management of fund companies: fund managers have deferred payment of performance pay for no less than 30% of them, and at least 30% follow-up investment
On the evening of June 10, the China Securities Investment Fund Association (hereinafter referred to as the "China Securities Investment Association") issued the "Guidelines for Performance Appraisal and Salary Management of Fund Management Companies" (hereinafter referred to as the "Guidelines"), implementing the provisions of the "Regulations on Supervision and Management of Public Securities Investment Fund Managers" and the "Opinions on Accelerating the High-Quality Development of the Public Fund Industry", and putting forward specific requirements on salary structure, salary payment, performance appraisal, and internal salary control management.
"Guidelines" propose that the performance appraisal and salary management of fund management companies should follow four basic principles: First, it is guided by the priority of the interests of fund shareholders and the long-term sustainable development of the company. Second, it can not only effectively motivate practitioners and establish a high-quality talent team, but also help prevent risks and improve compliance levels. The third is to balance the interests of employees, managers, shareholders and other stakeholders, which will help the company fulfill its social responsibilities and improve its ability to serve the real economy and national strategic. Fourth, it is in line with my country's national conditions, policy orientation and actual fund industry development.
Specifically, the "Guidelines" do not directly interfere with the salary level of fund management companies, but require fund management companies to reasonably determine and timely adjust the basic salary standards and salary structures of different positions. It will come into effect on the date of its release. Fund companies should adjust and improve the existing performance appraisal and salary management work before December 20, 2022.According to the Guidelines, the deferred payment period for performance compensation is no less than 3 years, and the deferred payment speed should not be faster than equal proportions. In principle, the amount of deferred payment of senior management personnel, fund managers and other key positions shall not be less than 40%, and the performance evaluation indicators shall reflect the long-term assessment status of more than 3 years.
"Guidelines" emphasize that fund management companies should formulate scientific compensation systems and assessment mechanisms in accordance with the requirements of corporate governance and compliance management, reasonably determine the compensation structure and level, standardize compensation payment behavior, and performance evaluation should be linked to compliance and risk management, strictly prohibit short-term assessment and excessive incentives, and establish a mechanism for binding the interests of fund practitioners and fund share holders.
In addition, fund management company employees shall implement the company's performance appraisal and salary management requirements in accordance with the company's system and labor contracts, and cooperate with the company to carry out related work.
At the same time, the China Fund Association stated that fund management companies are encouraged to base themselves on the long-term and healthy development of the industry and the company, strengthen capital accumulation, and take into account labor costs and shareholder profit distribution under the premise of strengthening investments such as investor education, risk response, information technology and charitable donations.
3. The symposium of the local association of the China Securities Investment Fund Industry Association was successfully held
Official news from the China Securities Investment Fund Industry Association said that recently, the China Securities Investment Fund Industry Association (hereinafter referred to as the China Securities Investment Fund Industry Association) held a symposium of local associations through video based on the previous written research to further listen to the opinions and suggestions of local associations on the development of the industry and the work of the China Securities Investment Fund Association. Representatives from thirteen local associations from twelve jurisdictions including Shanghai, Shenzhen, Guangdong and relevant responsible persons from the China Finance Association attended the meeting.
China Fund Association reported on the key tasks recently carried out in light of previous research. The local associations participating in the meeting exchanged views on the work situation in the region, party building leadership, epidemic prevention and control, and resumption of production and work, and put forward opinions and suggestions on the self-discipline and service work of the China Fund Association. All relevant business departments of the China Securities Association responded and answered questions on the spot. The symposium achieved good communication results.
Relevant responsible persons of the China Fund Association expressed their gratitude to the local associations for their continued support and help, and expressed their respect for the positive contributions made by local associations and their member units in fighting the epidemic, ensuring stable operation and supporting the resumption of production and work. They also expressed that the China Fund Association will further actively build a long-term communication and cooperation mechanism to provide more support for local associations to effectively serve the industry. At the same time, we hope that local associations will take advantage of their geographical advantages to continue to effectively play their role in self-discipline and supervision, strengthen the leadership of industry party building, promote industry exchanges, and promote industry cultural construction. Together with the China Financial Association, we will strive to purify the market ecology, improve the level of industry self-discipline and service, and jointly promote the high-quality development of the industry to a new level.
4. China Banking and Insurance Regulatory Commission: Increase financial support for the elderly care industry and reasonably meet the financing needs of elderly care service institutions
On June 10, the General Office of the China Banking and Insurance Regulatory Commission issued a notice on the strengthening of financial services for new citizens in the banking and insurance industry. Banking and insurance institutions should carry out product and service innovation according to local conditions, strengthen financial services for new citizens, and the Banking and Insurance Regulatory Commission actively promotes the implementation of policies and measures. The following is the specific content of the notice:
(I) Innovate products and services, strengthen financial support for new citizens' entrepreneurship and employment, first, optimize and adjust existing credit products and expand the supply of financial services for new citizens.
is the second to launch exclusive credit products to support new citizens in entrepreneurship and employment.
The third is to continuously optimize insurance services and strengthen insurance protection for new citizens' entrepreneurship and employment.
(II) Strengthen housing financial services to meet the housing needs of new citizens
First, increase financial support for the construction of affordable housing.
The second is to support the healthy development of the housing rental market.
Third, it provides credit support for the reasonable housing purchase needs of new citizens.
(III) Improve health and pension financial services, and enhance the basic protection of new citizens in the field of people's livelihood
First, actively play the role of health insurance protection.China Life Insurance, Ping An Pension, Taibao Life Insurance, PICC Property and Casualty Insurance and others actively participate in Guangzhou's "Suisuikang" urban customized commercial medical insurance project, including non-Guangzhou household registration and holder residence permits for more than 2 years in the insured group, and promote the effective coverage of medical insurance to the new citizen group, with the cumulative number of insured people reaching 93,000. Ping An Pension Insurance has launched the "Bamin Insurance" for urban customized inclusive medical insurance with low premiums in Fujian. It is aimed at the people of the province and is not linked to household registration. At present, new citizens have accumulated 30,600 insurance coverage, with a total of 26 compensations, with a compensation amount of more than 350,000 yuan.
The second is to increase financial support for the elderly care industry. China Construction Bank, Bank of China and Bank of Communications have increased credit support for the elderly care industry to reasonably meet the financing needs of elderly care service institutions. At present, Bank of China has 1,974 customers in the elderly care industry, and the credit balance of the elderly care industry is 8.557 billion yuan. The balances of loans supported by the pension industry by China Construction Bank and Bank of Communications reached 3.2 billion yuan and 2.4 billion yuan respectively. China Life Insurance Guangdong Branch actively participates in the pilot project of long-term care insurance projects, providing long-term care management services to 3.83 million insured persons in Guangzhou, achieving seamless connection between medical insurance benefits and long-term care benefits for insured persons.
The third is to help optimize social security and medical insurance services. Agricultural Bank of China has launched an instant card-making and all-in-one machine to support customers to apply for social security cards online throughout the process, shortening the application time for social security cards from at least one month to 5 minutes. Bank of Beijing has launched the "smart medical insurance" service. New citizens can manage medical insurance funds through mobile phones with any debit card of Bank of Beijing. Bank of China has strengthened cooperation with medical insurance bureaus such as Yunnan, Heilongjiang, and Hebei, and opened special accounts for settlement of medical expenses in other places to facilitate direct settlement of medical treatment in other places for new citizens.
(IV) Actively implement policy requirements and strengthen new citizens' training education and financial services
First, support new citizens' vocational skills training.
The second is to strengthen financial support for the education of new citizens’ children.
(V) To address the characteristics of new citizens, improve the availability and convenience of basic financial services
, first, actively optimize basic financial services such as account opening.
is the second to help protect the legitimate rights and interests of new citizens.
"Fixed Income +" new product issuance
1. Minsheng Bank: Join hands with Huaxia Wealth Management to launch the first exclusive customized fixed income debt product
On June 14, 2022, Minsheng Bank will launch the bank's first customized wealth management company product - the "Huaxia Wealth Fixed Income Debt Series" wealth management product. This product is issued and managed by Huaxia Wealth Management Co., Ltd. (hereinafter referred to as Huaxia Wealth Management) and is only sold to individual customers of Minsheng Bank. The funds raised are 100% invested in fixed income assets such as high-quality credit bonds and non-standardized debts. The investment style is stable, the term is moderate, and it has the advantages of low comprehensive fees.
It is understood that as early as April 2021, Minsheng Bank and Huaxia Wealth Management established a product sales relationship and the two parties are the first cooperative institutions outside the bank. They have now sold a number of financial products such as cash management, fixed income pure bonds, fixed income enhancement, etc., and jointly launched the first batch of "cross-border wealth management connectivity---Northbound" financial products such as Huaxia Wealth Management's fixed income enhancement weekly fixed opening on October 20 last year, jointly contributing to supporting the interconnection and interconnection of the financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area. Based on previous good cooperation, Minsheng Bank carefully selected, the two parties once again jointly launched the first customized fixed-acquisition debt series financial products, striving to achieve a perfect combination of strong customer service capabilities and high-quality product investment management capabilities.
The issuing and management party of this product, Huaxia Financial Management, has rich management experience in the field of fixed income. The company's non-standard assets are, first, under the escort of the company's investment and research department, and through the coordinated analysis of the macro economy, meso-industry and micro-targets, the company will improve its asset mining capabilities; second, based on the principle of prudence, a strict evaluation system and project evaluation mechanism will be established and improved to effectively prevent and control the main risks of the financiers; third, a standardized and strict post-investment management system and requirements will be formulated, and the main responsibilities and strict management processes will be implemented to ensure that funds are recovered on time.
2. Guolianan Fund: Guolianan CSI interbank certificate of deposit AAA Index is being issued
. It is understood that Guolianan CSI interbank certificate of deposit AAA Index 7-day holding period fund was officially approved recently (code: 015956). The fund will be led by Wanli, a powerful female regular income player of Guolianan. It will be officially issued on June 8, providing investors with low risk preferences and seeking stable returns with new tools for spare money management.
data shows that the Guolian An CSI Interbank Certificate of Deposit Index Fund is a passive index bond fund. Through passive index investment, the target index can effectively track the investment returns, which can effectively reduce the impact of individual bonds on the entire investment portfolio. The proportion of the fund invested in interbank certificates of deposit is no less than 80% of the fund's assets. The other 20% of the asset allocation will choose financial tools with good liquidity, such as short-term bonds and short-term financing assets, further enriching the source of returns of the product portfolio.
It is worth mentioning that the fund is expected to be a fund manager of the fund. Wanli, a veteran with rich experience in managing cash products. He has been engaged in finance for more than 16 years and securities for more than 14 years. He has experience in trading in the banking and financial market department. He also has a deep understanding of the operation of currency investment tools such as interbank certificates of deposit. He is good at formulating long-term and phased investment strategies based on market conditions, and can make good balances between liquidity and returns. He is currently the general manager of the cash management department of Guolianan Fund.
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