Analysis On The Asset Management Of Futures Firms In China

At present China’s financial asset management business has accumulate a large scale. It amounts to 76.76 trillion RMB yuan of banks, trusts, securities and funds assets management in 2013. In addition, with the improvement of the futures market, futures asset management business in China has been flourishing. The amount of futures asset management exceeds 32 billion RMB yuan in the first officially operating year.Base on the statement of feasibility and particularity in which futures firms run asset management business, this article reviewed the development of futures asset management business in China and summarized the current situation firstly. Then based on the research of core elements in financial assets management business of banks, trusts, funds, securities and futures, solutions on developing futures asset management business was worked out via SWOT analysis and main economic characteristics was defined. Thirdly, through a case study of “Guangfa Qirui Quantification Hedging – Tianhong & Tianfang FOF Classified Special Asset Management Plan”, key elements in structuring a futures asset management product were summarized, and a further discussing was given on the application scope, advantages and disadvantages of differently structured products. At last, suggestions and solutions on how to develop futures asset management business were put forward from the views of both regulatory administrations and futures firms.The research results indicate that compared with other financial institutions, there are five main economic characteristics of futures asset management business as follows: the industry scale is the smallest and the asset management scale is smaller even; the investment scope is of minimum; futures asset management business has the most restrictions; the marketing channel is narrow; homogeneity competitions are serious. Further analyses on key elements structured a futures asset management product indicate that merits of different products which designed differently were relatively. Comparatively speaking, profit-risk structured products are more likely to be accepted by the market and program trading ones will be the mainstream in the future.