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Original title: China Merchants Bank Wealth Management intends to introduce strategic investments, China Merchants United Financial Planning to be made public
Our reporter Zhang Zhiwei and reporter-in-training Yu Junyi
On March 19, China Merchants Bank, known as the “King of Retail”, released its annual report In addition to its outstanding performance in 2020, China Merchants Bank announced two major plans that attracted market attention. The two main issues involve its two subsidiaries respectively, that is, its wealth management subsidiary China Merchants Bank Wealth Management plans to introduce JPMorgan Assets as a strategic investor, and its consumer finance company China Merchants United Finance will launch a listing plan.
CMB Wealth Management plans to introduce foreign shareholders
China Merchants Bank announced that it plans to introduce an external strategic investor, JP Morgan Asset Management, to make a cash increase in its wholly owned subsidiary, China Merchants Bank Wealth Management Co., Ltd. Once the capital increase is completed, JP Morgan Asset Management will own 10% of CMB Wealth Management. If the China Insurance and Banking Regulatory Commission approves the transaction, it will become the first domestic wealth management subsidiary to directly introduce foreign capital at the enterprise level.
The journalist noted that the two sides have already had a good basis for cooperation for many years. CMB Wealth Management stated in an official statement that the two sides have reached a strategic partnership as early as 2019, and are closely cooperating in product development and education investors This strategic investment This cooperation is further deepened. The journalist discovered that in July 2020, the two parties had cooperated to launch the first wealth management product, Zhaozhi Dividends, on the 1st of the month.
Wang Yanxing, a senior fellow at China’s Renmin University Chongyang Institute of Finance, said in an interview with Securities Daily: “The strategic cooperation reached between China Merchants Bank and JPMorgan Asset Management is of great importance. This kind of alliance model solid can become a model for the industry. “
In fact, as early as 2019, the State Council’s Financial Stability and Development Commission Office issued 11 measures to open up the financial industry, including “encouraging foreign financial institutions to engage in the establishment and investment in management subsidiaries assets of commercial banks “. .
The reporter examined and found that so far, a total of three Sino-foreign joint venture wealth management companies have been established. As of 2019, BOC Wealth Management, CCB Wealth Management and Bank of Communications Wealth Management have established, respectively, financial management joint ventures with Oriental Asset Management, BlackRock and Schroder, the company. In contrast, this time China Merchants Bank presented directly to foreign shareholders at the level of its wealth management subsidiary, which is a new development.
Li Guangzi, director of the Bank Research Bureau of the Finance Institute of the Chinese Academy of Social Sciences, told a reporter for the Securities Daily that the introduction of foreign shareholders in wealth management subsidiaries reflects the expansion of the industry openness. financial institution of my country abroad. world. At the same time, the introduction of foreign capital can introduce the advanced experience of advanced asset management companies. Promote the commercial development of wealth management subsidiaries.
“The introduction of foreign capital this time was carried out through a capital increase, which can be seen as an assessment of the value of the wealth management subsidiaries.” Li Guangzi believes that the introduction of foreign shareholders has two benefits for wealth management subsidiaries. On the one hand, domestic wealth management affiliates need advanced foreign business experience in asset management, especially advanced product design and development experience. On the other hand, foreign capital can enter China’s huge wealth management market by buying shares.
In terms of performance, according to China Merchants Bank’s 2020 annual report, at the end of the reporting period, the balance of wealth management products managed by CMB Wealth Management (excluding structured deposits) was 2.45 trillion yuan , an increase of 11.87% compared to the end of the previous year, of which the balance of new products was 1.66 billion yuan, an increase of 141.78% compared to the end of the previous year and an increase in 141.78% compared to the end of the previous year, which represents 67.76% of the balance of wealth management products (excluding structured deposits).
Another consumer finance company wants to go public
At the same time, China Merchants Bank also released another announcement, which is to start investigative work on the listing of China Merchants Union Consumer Finance Co., Ltd. (hereinafter China Merchants Union Finance), and the plan specific quote. It will be submitted to the Board of Directors for deliberation after its expiration. This means that the consumer finance industry, which has never seen a listed company, has entered the listing plan of a leading company.
The reporter noted that as of now, in addition to the China Consumer Finance Merchants Union having a listing plan, Consumer Finance immediately obtained approval in principle from the Chongqing Banking and Insurance Regulatory Office to issue A shares. in September 2020.
According to the annual report of China Merchants Bank, China Merchants United Finance ranks first in the licensed consumer finance industry in terms of loan scale, and its profitability is also second to none in the industry. At the end of 2020, the total assets of China Merchants Union Consumer Finance were 108,881 million yuan and the net assets were 11,023 million yuan. During the reporting period, the net profit was 1.663 billion yuan. Compared with the 2019 net profit of 1.46 billion yuan, a year-on-year increase of 13%.
Consumer finance expert Su Xiaorui told the “Securities Daily” reporter that after the opening period in 2020, the structure of the consumer gold industry will continue to be stable in 2021, and the introduction of gold ratings for the consumer means that the consumer gold business will change development to rapid development In the high-quality development stage, under this backdrop, it will be the general trend for the top platform to seek the list.
According to Su Xiaorui’s analysis, according to the industry life cycle theory, the consumer gold industry has gradually passed from the growth stage to the mature stage. Low market growth rate and industry profit decline will become a trend. On this basis, seeking to go public can be. Obtaining high quality “blood enriching” channels will lay a solid foundation for further expansion of the commercial scale; on the other hand, it can optimize corporate governance and improve brand awareness.
