Measure Research On The Development Of H Bank Financial Services Under The New Regulations Of Asset Management

In the past ten years,China's financial industry has experienced rapid development.Thousands of financial institutions,such as securities companies,funds,banks,insurance companies,trusts appear.Under the system of separate operations,most of the financial institutions choose to develop and grow their asset management businesses in order to become more competitive and achieve higher rankings among other firms.However,restricted ways of capital flow in the system and high financial leverage have caused huge negative impact on the financial industry and economy.In order to regulate the financial market and reduce systematic risks,Chinese regulator issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" in 2018.Since then,the asset management business has entered a major period of transformation.Bank financing products are the major components of the asset management business,and become the symbol of bank asset management business.At present,large state-owned joint-stock banks and leading city commercial banks that own large amount of financing products have already started the process of business transformation,and have successively issued net-value products that would meet the new regulatory requirements.However,many small and medium banks with asset size below 50 billion encountered difficulties during the transformation process.The purpose of this article is to study the advantages and disadvantages of small and medium banks in the development of asset management business,and obstacles that may be encountered during the transformation process by using H Bank as an example.Moreover,from the perspectives of asset,capital,system and talents,the article proposes actionable strategies for small and medium banks to successfully complete the transition process of asset management business transformation during the transition period in 2020.According to our findings in this article,we discovered the following points that small banks such as H Bank that would like to be invincible under the new rules of asset management.Firstly,it is necessary to build their own investment research teams and finding outsourcing agencies as soon as possible.Secondly,banks should strengthen their credit evaluation and risk management capabilities.Thirdly,banks should conduct R&D on net-value products as soon as possible to enrich their product diversity.Lastly,banks should increase their investment in system development,devote more efforts in educating investors,and innovate throughout the business transformation process.For small and medium-sized banks such as bank H,the New Regulations of Asset Management is not only a challenge,but also an opportunity.It has reformulated the rules of asset management business,putting all banks' financial management business on the same running line.If bank H can seize the historical opportunity and seize the first mover advantage,its financial management business is bound to go to a higher level.