[Dahe Daily Dahe Finance Cube] (Reporter Pei Rongrong Ding Qianwentu)After 21 years, the fifth national AMC was approved to open.

On the evening of December 17th, official website, a Chinese China Banking and Insurance Regulatory Commission, announced that it agreed to the official opening of china galaxy Asset Management Co., Ltd. (hereinafter referred to as Galaxy Assets). This means that following the establishment of the four AMCs in 1999, China ushered in the fifth national financial asset management company, and the industry formed a development pattern of "5+N+ Banking Department+Foreign Investment Department".

However, although "shocking four", the news of the establishment of the fifth national AMC has long been a clue. Coincidentally, the market has many quite consistent speculations about this "new entrant".

"Relying on the shareholder background different from the four national AMCs, the business positioning of Galaxy Assets should be different, focusing on the bad disposal of the capital market, such as promoting the handling of default bonds, mergers and acquisitions of listed companies, and financial institution custody. In the current context, it is conducive to boosting market confidence. " A person in the management industry said.

Personnel recruitment adopts ultra-high standards.

According to the announcement of China Banking and Insurance Regulatory Commission, the registered capital of Galaxy Assets is 10 billion yuan. Among them, china galaxy Financial Holding Co., Ltd. invested 6.5 billion yuan, with a shareholding ratio of 65%; Central Huijin Investment Co., Ltd. invested 1.33 billion yuan, with a shareholding ratio of 13.3%; Nanjing Zijin Investment Group Co., Ltd. invested 1 billion yuan, with a shareholding ratio of 10%; Beijing Financial Street Capital Operation Center invested 600 million yuan, with a shareholding ratio of 6%; CITIC Securities Co., Ltd. invested 570 million yuan, with a shareholding ratio of 5.7%.

The business scope mainly includes ten aspects: (1) purchasing, entrusted to operate non-performing assets of financial institutions, managing, investing and disposing of non-performing assets; (2) Converting creditor’s rights into equity, and investing, managing and disposing equity assets; (3) Investment in fixed-income securities; (four) the issuance of financial bonds, interbank lending and commercial financing from other financial institutions; (5) Bankruptcy management; (six) financial, investment, legal and risk management consulting and consultancy; (seven) assets and project evaluation; (eight) approved asset securitization business, financial institution custody and liquidation business; (9) Non-performing assets business of non-financial institutions; (10) Other businesses approved by the State Council Banking Regulatory Authority.

Li Mei, secretary and chairman of china galaxy Jinkong Party Committee, is the chairman, and Liu Zhihong, deputy secretary, director and general manager of china galaxy Jinkong Co., Ltd. is the vice chairman.

In fact, as early as March 2018, there was news that the State Council approved the plan to establish the fifth national AMC, but it has not been officially certified; Until December 31, 2019, Li Mei said in her 2020 New Year message that in 2019, the company successfully obtained capital increase from shareholders, and the transformation of China Construction Investment CITIC into the fifth financial asset management company in China was smoothly promoted; In March this year, China Banking and Insurance Regulatory Commission official website officially approved the transformation of CCB CITIC into a financial asset management company and renamed it Galaxy Assets, requiring it to complete the transformation within 6 months from the date of approval. Sky Eye Survey shows that on June 1 this year, the name change was officially completed, and it was changed from CCB CITIC to Galaxy Assets.

According to sources in the asset management industry, the recruitment of Galaxy Assets has quietly started since last year, and the requirements for the comprehensive ability of candidates are very high, exceeding market expectations.

Or it will focus on the bad disposal of the capital market.

Although there is no big difference between Galaxy Assets and the other four national AMCs in terms of business scope, many insiders have given quite consistent guesses: Galaxy Assets will focus on the disposal of bad capital markets, which is different from the other four AMCs in focusing on the disposal of financial assets.

This speculation is not without roots.

The predecessor of Galaxy Assets, CCB CITIC, was jointly established by CITIC Securities and China CCB Investment in 2005. Its purpose is to undertake the non-securities assets of Huaxia Securities and operate according to the standards of asset management companies. At that time, the registered capital was 1.9 billion yuan. Among them, CITIC Securities invested 570 million yuan, holding 30% of the shares; China CCB invested 1.33 billion yuan, holding 70% of the shares.

The other four national AMCs were specific products of the market economy in the last century. At that time, when the macroeconomic environment was overheated, commercial banks took on the task of national macro-control, lending on a large scale, and shouldered serious asset quality burdens. Especially after the Asian financial crisis broke out in 1997, the situation was even more severe.

In this context, China has set up four NPL management companies, namely China Huarong, China Great Wall, China Oriental and China Cinda, to take over NPL loans from four state-owned commercial banks, namely, industry of industry, agriculture, China and China Construction, and China’s NPL management industry was born.

From a completely different background, Galaxy Assets was born from the transferee of securities firm assets, which naturally has the advantages of asset operation and disposal in the securities market. At the same time, among the existing shareholders of Galaxy Assets, there is CITIC Securities, a China head broker. None of the other four state-owned AMCs has a brokerage background.

In addition, the asset management personnel revealed to Dahe Daily and Dahe Finance Cube that the regional structure of Galaxy Assets will also be different from the other four, or they will set up branches in the district to conduct business instead of one in each province.

There is a large room for bad disposal in the securities market.

As a new entrant, will Galaxy Assets stir up a pool of spring water?

"Due to the different business positioning, Galaxy Assets will not have much impact on the existing market. Moreover, the establishment of the current bad scale of the capital market can boost market confidence. " The above-mentioned insiders told Dahebao Dahe Finance Cube reporter.

According to its introduction, after the continuous development of national AMCs and the continuous expansion of local AMCs in previous years, the current market for the disposal of financial non-performing assets has stabilized, which can be seen from the fact that the number of local AMCs has decreased year by year from 2018 to even zero this year. However, with the accelerated transformation of old and new kinetic energy, the high-quality development of the economy and the stricter supervision of the capital market, the effect of good money expelling bad money has gradually emerged, and the bad things in the securities field have started to break out and continue to increase. Bond defaults have occurred frequently, trust and other assets have deteriorated, and many enterprises have fallen into a liquidity crisis. The approval of the establishment of Galaxy assets with brokerage background is also due to the market.

According to China Banking and Insurance Regulatory Commission data, as of the end of the third quarter of this year, the balance of non-performing loans of commercial banks in China was 2.84 trillion yuan, an increase of 98.7 billion yuan over the end of last quarter; The non-performing loan ratio of commercial banks was 1.96%, a slight increase of 0.02 percentage points from the end of last quarter. According to Wind data, as of December 17, 2020, the stock of China’s bond market reached 113.87 trillion yuan, an increase of 16.79 trillion yuan from the beginning of the year. Among them, the stock of credit bonds reached 38.76 trillion yuan, an increase of 5.88 trillion yuan over the beginning of the year. Based on the non-performing rate of 0.8% in the bond market (the default rate of corporate credit bonds at the end of 2018), the scale of non-performing loans has also reached 0.91 trillion yuan.

Yang Jin, a senior researcher at the Institute of Financial Supervision, also said in an interview with the media that the new Securities Law has tightened the information disclosure and other related responsibilities of listed companies, strengthened the intensity of accountability and punishment for violations of laws and regulations, and guided listed companies to improve the quality of their companies. For existing listed companies, a large number of problem companies will need to be rectified, and a large number of assets will need to be revitalized, which will provide excellent opportunities for the non-performing asset industry. Through market-oriented debt-to-equity swaps, bankruptcy reorganization, rescue funds, merger and acquisition funds and other means, we will participate in the resolution of troubled assets of listed companies, revitalize high-quality assets, optimize market structure, and promote market changes.

Official website, Galaxy Assets, announced on December 18th that in the next step, Galaxy Assets will strictly follow the business scope approved by China Banking and Insurance Regulatory Commission, focus on the main business, adapt to the new development stage, implement the new development concept, integrate into the new development pattern, take the promotion of high-quality development as the theme, take deepening the supply-side structural reform as the main line, take making it stronger and better as the goal, focus on deepening the reform of system and mechanism, do a good job of "six stabilities" and resolutely implement "six stabilities".

Editor: Xin Huang | Audit: Li Zhen | Director: Wan Junwei

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