Research On Financial Products Asset Allocation Business Of China's Commercial Banks Under The New Regulations On Asset Management

With the continuous financial awareness of Chinese residents and the increasing demand for asset management,financial products have developed rapidly in recent years and become an essential development area of commercial Banks.On one hand,it makes a great contribution to the preservation and appreciation of residents' wealth;on the other hand,it broadens the financing channels of the entity economy and promotes economic development.However,with the rapid development,there are also problems such as capital pool operation,rigid payment and maturity misallocation,which are divorced from the source of asset management.In order to regulate the asset management market,in April 2018,the People's Bank of China,the China Banking and Insurance Regulatory Commission,the China Securities Regulatory Commission and the State Administration of Foreign Exchange jointly issued the guiding opinions on regulating the asset management business of financial institutions,referred to as the new regulations on asset management.According to the new regulation,commercial Banks are required to prohibit term mismatches and standardize capital pool products,prohibit the rigid payment of financial management in statements,and establish wealth management subsidiaries to carry out asset management services.Moreover,commercial Banks are required to gradually complete the transformation during the transition period at the end of 2020.The asset allocation business of financial products will face major challenges in transformation and development for a period of time.This paper studies the transformation and development of financial products asset allocation business under the new regulations.Firstly,the development status and challenges of financial products asset allocation business under the new regulation are described.Then,the performance comparison benchmark of financial products that can represent the asset allocation ability is selected as the index for quantitative analysis,and the model to test the asset allocation ability is constructed.The empirical conclusion is drawn through the vector autoregression analysis method.On this basis,the successful foreign asset allocation model is qualitatively analyzed,and the experience of developing financial products asset allocation business in China is obtained.Finally,the results of comprehensive quantitative analysis and qualitative analysis put forward Suggestions for the financial products asset allocation business of commercial Banks in China.According to this paper,commercial Banks should take measures for transformation and development according to their own conditions.The core of financial products asset allocation business is to improve the ability to manage assets,especially the ability to manage standardized assets.In addition,we also need to cooperate with wealth management subsidiaries,and explore the configuration mode of FOF and MOM with external organizations.There are two innovations in this paper: The first one is the research perspective.According to the new regulations issued by the regulatory authorities recently,this paper studies the transformation and development of financial products asset allocation business of commercial Banks,and puts forward the allocation models of FOF and MOM.These studies have strong guiding significance for the financial products asset allocation business.The other one is research method.This paper apply the vector autoregression analysis method to conduct empirical research,and according to the results of empirical analysis,it concludes the specific strategies for the transformation and development of commercial Banks' financial products.There is some breakthrough due to the theoretical research is the main focus at the present stage.