The Regulation And Development Of Securities Companies' Asset Management In China

The asset management business is a new financial business. In 2000, the total amount of global private asset management business has added up to ＄10,000,000 million. If adding the asset under management from public offering, it is close to ＄30,000,000 million. Nowadays, in China , the total asset which is accepted by securities companies is less than ¥6,000 million, compared to the total stock market capitalization in China, the scale is very small, not mention to the international ones. For the example, the profit of the asset management business in Morganstanley(one of the biggest securities companies in foreign countries)has occupied 21. 37‰ of its total profit. Now, the asset management business has become an important one of the three profit pillars in Morganstanley. In China, the asset management business of the inland securities companies, originated from the traditional brokerage business and investment business, is not only for the need of competition, but also a tackling means after decline of profit ratio in traditional business. Especially after May 1st in 2002, "The floating commission " becoming effective, the development and innovation of the new business has been attached more and more importance. In one aspect, excepting brokerage business and investment business in the primary and secondary market, it has a new梑right prospect, on the other hand, it can mutually combine well with thetraditional businesses. Thus, the securities companies can offer an all梐round and individualizational financial service to their clients.Because that the asset management business is a novelty, there are many questions as following: regulation deficiency, supervision chaos, competition disorder, etc. Especially in China, unsymmetric information, credit deficiency still exist. Much problem such as illegal private banking, private placement fund, phenomena of fund management irregularity, immense risks in securities companies' asset management business has become much more seriously. Therefore strengthening the study of this novelty to reach standardization and development has become an urgent task to the banking industry.In this article, there are four parts as following:â…  Analyzing on the core conception: the running system and theory of the securities companies' asset management, including the cause of formation, features, main present running pattern, etc.â…¡ Elaborating the current situation and theoretical front line about asset business management of securities companies(by the ways of some mature European markets and famous securities companies, esp. Millian lynch and Morganstanley) , and illustrating the international usual practice , rules and means of this novelty(especially emphasized its focalization and practice).â…¢ Reviewing the process of asset management business in China, expounding its current conditions and main questions: eg. Policy deficiency, variety deficiency, bad environments, regulation deficiencyin reward and inner risk梒ontrolling , etc.â…£ Stressing the importance of speeding up the asset management businessof securities companies (especially stated its function to promotingthe whole economic)and discussing the strategy for its standarddevelopment.â‘ Constructions of law and regulations (including definition of the mainbody , regulation of trade system, self梔iscipline of industry,supervision of the information, institutional investors' development,etc ).â‘¡Standardization and development of the asset management market inChina(introduction of the international usual practice)â‘¢Speeding up the innovation of the business, attempting to use allsorts of patterns(including fund promoting, supplementary option,management equilibrium, etc ).Main point of view in this article:â…  The asset management business takes an important function in reasonable allocations of resources. In addition, we should promote its development by regulating the novelty.â…¡ Compared with the developed countries, the asset manage...