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beijing business news (reporter song yitong) increasing the participation of medium and long-term funds in the capital market will not only help broaden direct financing channels, but also provide more support for the real economy. on september 26, information from the official website of the china securities regulatory commission. recently, with the consent of the central financial commission, the central financial office and the china securities regulatory commission jointly issued the "guiding opinions on promoting medium and long-term funds to enter the market" to encourage bank financial management and trust funds to actively participate in capital market, optimize the incentive and assessment mechanism, unblock market entry channels, and increase the scale of equity investment. according to analysts, encouraging bank financial management to participate in the capital market will bring more incremental funds to the capital market and further boost investor confidence.

in fact, this is not the first time that encouraging banks and other medium- and long-term funds to participate in the capital market has been mentioned. in april this year, the state council issued the "several opinions on strengthening supervision and preventing risks to promote the high-quality development of the capital market" which clearly pointed out that banks are encouraged to manage financial services and trust funds actively participate in the capital market and increase the scale of equity investment.

dong ximiao, chief researcher of china merchants union, said that encouraging bank financial management to participate in the capital market will bring more incremental funds to the capital market, further boost investor confidence, and promote the healthy and sustainable development of the capital market.

the scale of bank wealth management funds is huge. according to the "china banking industry wealth management market semi-annual report (first of 2024)" released by the banking wealth management registration and custody center, as of the end of june 2024, the bank's wealth management market continued to be 28.52 trillion yuan. recently, monitoring data from multiple institutions showed that the scale of bank wealth management exceeded the 30 trillion yuan mark in the third quarter.

there are some practical foundations for bank financial management funds to participate in the capital market. one type is fixed income investment, the other is equity direct investment, and the other is outsourcing investment. the more common method is "fixed income +" products. these products mainly add the allocation of equity and other assets to fixed income products. the products are more flexible and can diversify risks by increasing the variety of asset allocations. at the same time, they can also play a role in the role of improving product returns, for example, "fixed income +" products include "fixed income + stocks", "fixed income + convertible bonds", "fixed income + preferred stocks", etc.

however, in the field of equity investment, bank financial management still accounts for a small proportion. according to data from china financial management network, there are currently a total of 940 equity financial management products issued by various banks and financial management companies. in comparison, there are a total of 43,900 fixed-income financial management products. only. the reason is that after experiencing the "net-breaking" wave of financial management in 2022, banks and financial management companies have become more cautious in investment, the proportion of equity asset allocation has declined, and the number of equity financial management products issued has also been smaller.

regarding how bank wealth management products can actively participate in the capital market, industry analysts bluntly stated that in terms of optimizing product structure, wealth management companies need to provide diversified and flexible products to meet the needs of customers with different risk preferences, improve and enrich product shelves, and strengthen investment and risk management helps investors achieve their goals of maintaining and increasing value. specifically, financial management companies should seize the development opportunities of various products and actively deploy thematic product markets such as fixed income +, fof, pension financial management, esg, etc., while meeting the increasingly diversified customer needs, and effectively embed financial management products into in the allocation of long-term funds.

dong ximiao further pointed out, "although the risk appetite of bank financial management investors is not high, public financial management products investing in stock funds face constraints such as concentration requirements. but in the long term, the scale and depth of financial management funds participating in the capital market are expected to steadily increase."

previously, many relevant people from financial management companies also revealed in interviews with reporters from beijing business daily that they will continue to seize market opportunities, launch high-yield bonds, equity fof, quantitative and other products, and explore high-yield investment opportunities under the premise of controllable risks. , fully meeting the configuration needs of medium- and high-risk customers.