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(Original title: Subscription volume shrunk by nearly half! Trust wealth management of listed companies continues to "cool down")

Since July, severalPublic CompanyDisclosure of subscriptionFinancial productOverall, the listed companies once favored theTrustFinancial management has become much quieter this year. Wind data shows that, based on the subscription date as the statistical standard, in the first half of the year, a total of 24 listed companies issued announcements on the subscription of trust financial products, with a total of 96 subscriptions and an amount of 5.71 billion yuan. Compared with the same period last year, 53 listed companies subscribed a total of 11.08 billion yuan, and the subscription scale has shrunk by 48.5%. Industry experts said that with the increase of market uncertainties and the decline of product yields, listed companies will inevitably strictly control risks and be cautious about corporate financial plans.

Hisense Home Appliances subscribes to trust products worth more than 2.2 billion yuan

Hisense Home Appliances, a giant in the home appliance industry, recently announced that from June 28, 2023 to July 4, 2024, the company and its non-wholly-owned subsidiaries, Air Conditioner Marketing Company and Refrigerator Marketing Company, jointly subscribed forShaanxi State InvestmentThe subscription amount for trust financial products reached RMB 2.23 billion.

In the announcement, Hisense Home Appliances stated that according to the "Proposal on the Company's Entrusted Financial Management with Its Own Idle Funds", the company will, on the premise of controlling investment risks, use no more than RMB 19 billion of its own idle funds to entrust commercial banks, trust companies, securities companies, fund companies, insurance companies, asset management companies and other financial institutions to carry out short-term, medium- and low-risk investment and financial management, so as to improve the efficiency of fund use and increase the return on cash assets.

The reporter noticed that Hisense Home Appliances has been fond of financial management in recent years. Taking this year as an example, according to Wind data, as of press time, Hisense Home Appliances has a total of 47 financial management products with a total amount of 7.545 billion yuan. The types of subscribed products include bank financial management, trust, and investment company financial management products. Among them, there are 13 trust financial management products with a total scale of 2.43 billion yuan.

It is worth mentioning that among the 13 trust products invested by Hisense Home Appliances, 10 are from Shaanxi State Investment Trust and the other three are from COFCO Trust. In fact, Hisense Home Appliances has issued announcements on subscribing to trust financial products more than once. In addition to the financial products of Shaanxi State Investment Trust and COFCO Trust, it has also subscribed to the financial products of Chongqing Trust and Bairui Trust.

On September 18, 2023, Hisense Home Appliances announced that the company and its subsidiaries subscribed to Chongqing Trust’s wealth management products for a total of RMB 1.769 billion from March 28 to September 18, 2023. From the perspective of the investment scope of trust products, the relevant trust funds are mainly invested in cash management and fixed-income assets. One month later, Hisense Home Appliances announced again that from July 17, 2023 to October 17, 2023, the company’s non-wholly-owned subsidiaries, Air Conditioning Marketing Company and Refrigerator Marketing Company (as subscribers), entered into the Bai Rui Trust Wealth Management Agreement to subscribe to Bai Rui Trust’s wealth management products for a subscription amount of RMB 1.66 billion.

"Hisense Home Appliances' large-scale purchase of financial products against the trend has attracted much attention in the industry. As the uncertainty in the financial market increases, it may affect its product selection and timing in the future," said an institutional person who has been paying close attention to Hisense Home Appliances. Recently, when receiving research from 96 institutions including Southern Fund, Yinhua Fund, Chunhou Fund, Chengjin Asset, and Fuguo Fund, Hisense Home Appliances also clearly stated that under the condition of sufficient cash flow, the company will improve the efficiency of capital use in terms of dividends, repurchases, capital expenditures and capital operations.

"Generally speaking, listed companies use idle funds to purchase wealth management products, the main purpose is to improve the efficiency of fund use and increase the company's profits; at the same time, entrusting funds to professional institutions for management will help reduce investment risks." Zhou Maohua, a macro researcher at the Financial Markets Department of Everbright Bank, told the Economic Information Daily reporter that trust products have been favored by some listed companies in recent years. On the one hand, the yields of domestic deposits and wealth management products have declined, and the fluctuations in net value have increased, which has prompted listed companies to seek diversified wealth management investments. On the other hand, in recent years, the country has accelerated the filling of shortcomings and strengthened supervision, and the standardization and specialization of the trust industry have increased rapidly. At the same time, trust wealth management products have the advantages of a wide investment range, rich investment varieties, relatively high returns, and a professional team. Judging from the trend, trust wealth management products still have great development potential, and the high-quality development of the domestic wealth management market will provide diversified choices for various entities such as listed companies.

Short-term financial products are popular

In addition to Hisense Home Appliances, several listed companies have disclosed the redemption status of their wealth management plans or wealth management products this month.

On July 10, the listed company Ludaofeng issued a progress announcement on the use of some idle raised funds and self-owned funds for cash management, agreeing that the company and its subsidiaries can use idle raised funds of no more than RMB 230 million (including principal) and self-owned funds of no more than RMB 600 million (including principal) for cash management, while ensuring that it does not affect the construction of raised funds investment projects and normal operations, and invest in financial products with high security and good liquidity (including but not limited to structured deposits, income-type certificates, etc.). The announcement shows that the types of cash management this time include funds and trust wealth management, including Ping An Trust, Bai Rui Trust and other trust wealth management with a scale of up to RMB 65 million.

On July 3, Baida Group issued an announcement confirming the repayment of Zhongrong Trust products, successfully recovering 50 million yuan in principal and 3.2953 million yuan in interest. Baida Group will also use 253 million yuan to purchase trust products, structured deposits and wealth management products. It is reported that Baida Group has been quite active in wealth management investment activities in the past 12 months. The company has invested in a total of 22 wealth management products with a total investment of 1.579 billion yuan, and each investment amount is between 15 million yuan and 320 million yuan. So far, the company has recovered 599 million yuan of investment and realized 54.7538 million yuan in income, and nearly 980 million yuan of principal has not yet been recovered.

In addition, West Point Pharmaceuticals also announced that, on the premise of ensuring the normal construction of the investment projects with raised funds and the safety of funds, part of the idle raised funds (including over-raised funds) with an amount not exceeding RMB 200 million will be used for cash management. The company and its wholly-owned subsidiaries will use part of the idle self-owned funds with an amount not exceeding RMB 150 million for cash management and entrusted financial management, on the premise of ensuring that it does not affect the company's daily operations, to purchase short-term investment and financial management products with high security, good liquidity and a term of no more than 12 months. Reporters found that West Point Pharmaceuticals and its wholly-owned subsidiaries have used their own funds for cash management and entrusted financial management, and the balance that has not yet expired is RMB 111 million, including RMB 3 million of the "Zhonghai Trust Haiying Fengyi Collective Open-ended Fund Trust Plan" redeemed on the weekly opening day, and trust products such as Huaxin Trust-Xinyijia No. 303 with a scale of RMB 10 million.

In fact, West Point Pharmaceuticals is only a "representative" of listed companies in short-term trust investment. Among the trust products subscribed by listed companies this year, 25 have short redemption cycles, with redemption available on every trading day or on a fixed date every week. For example, Yongan Pharmaceuticals invested 10 million yuan to subscribe to the Guotou Taikangxin Trust Trust Jiabao Guangfa Zunxiang No. 1 Collective Fund Trust Plan, which can be redeemed every Monday.

Why do some listed companies prefer short-term financial products?Bank of ChinaDu Yang, a researcher at the Institute, analyzed that first, short-term financial products have high liquidity, such as daily or weekly redemption, which enables listed companies to quickly cash in financial products when needed for daily operations, payment of accounts or response to emergencies, thereby maintaining the flexibility of funds. Second, although long-term financial products may provide higher returns, they will also lock funds for a long time, increasing the risk that funds cannot be flexibly allocated during this period. Short-term financial products can effectively avoid this risk and make companies more relaxed when facing funding needs. Third, short-term financial products are less affected by market fluctuations due to their short holding period. By investing in short-term financial products, listed companies can reduce the risks brought about by changes in the market environment during the investment period, thereby maintaining relatively stable returns.

"As the supervision of the trust industry becomes stricter and the quality of trust assets has declined, trust companies are accelerating their business transformation and risk clearance. Against this background, listed companies tend to have short-term redemption cycles for subscribed trust products based on considerations of fund security and liquidity," said Shuai Guorang, a researcher at Yongyi Trust.

Multiple factors cause listed companies to tighten their purse strings

Although listed companies use idle funds to purchase financial products in order to increase their yields, the overall purchase quantity and amount show a cooling trend in listed companies' financial management. Wind data shows that as of press time, a total of 595 listed companies in Shanghai and Shenzhen stock markets purchased financial products this year, a year-on-year decrease of 46.78%; the amount of financial products subscribed to fell from 724.748 billion yuan in the same period last year to 311.338 billion yuan; the number of financial products held fell from 10,415 in the same period last year to 5,327, a decrease of 48.85%.

"The financial management scale of listed companies has shrunk in the past two years, which may be affected by multiple factors, including the decline in the yield of financial products and more companies giving priority to using idle funds for dividends or repurchases. This trend will most likely continue for some time to come. Many listed companies have made it clear that in the future the company will mainly hold on to its purse strings." said the person from the above-mentioned institution.

When asked about the reasons for the decline in the amount of investment in financial products by listed companies, Zhou Maohua believed that, on the one hand, in recent years, deposits, financial products, etc.monetary assetsEarnings have generally declined, and financial asset price volatility has increased; on the other hand, under a complex operating environment, listed companies have moderately increased their cash flow reserves to enhance their ability to resist risks; in addition, it is also related to the listed companies' increase in repurchases and shareholder dividends.

The reporter noticed that although the product choices of listed companies include but are not limited to commercial bank wealth management, securities company wealth management, fund company wealth management, insurance company wealth management and wealth management products issued by asset management companies, some listed companies still prefer trust wealth management. According to the latest data from Wind, as of June 30, this year, a total of 24 listed companies have issued relevant announcements, subscribing to a total of 96 trust wealth management products, with a total subscription amount of 5.71 billion yuan. However, it should be pointed out that in the same period of 2023, a total of 53 listed companies subscribed to related trust wealth management products, with a total subscription amount of 11.08 billion yuan, a year-on-year decline of 48.5%.

"In terms of yield, trusts often have certain advantages over other financial products, so they are still one of the options for listed companies." Yu Zhi, a researcher at Yongyi Trust, said that, relatively speaking, there are relatively few high-quality trust projects that can be invested in at present, and the yield has declined significantly compared with previous years. The competitiveness of trust products has declined compared with previous years.

Zhou Maohua suggested that listed companies need to rationally plan the use of idle funds based on the company's daily operations and development strategies when choosing financial products, and strictly control the selection of investment targets, terms, risk levels, etc. They need to improve the level of professional management of idle funds and rationally diversify investment risks.