What Is a Plan Asset?

A special asset management plan refers to a scheme in which a unit or institution independently contributes capital to the investment management company or the asset management department of a securities company to separately manage and obtain benefits. Special asset management plans usually do large-scale financing projects, such as urban construction, infrastructure, municipal engineering, and large-scale enterprise special financing. The special asset management plan is another major innovation in the asset management business of securities companies.

Special Asset Management Plan

Right!

Special

According to the regulations of the China Securities Regulatory Commission, special plans specifically refer to the asset management plans of specific clients that invest in equity, debts and other property rights not transferred through the stock exchange and other assets recognized by the China Securities Regulatory Commission. The expression "equity, creditor's rights and other property rights that have not been transferred through the stock exchange" is very broad, making the investment scope of the special asset management plan cover almost all financing methods, which can be based on the needs of the real economy and gather social capital Invest in physical assets and serve the real economy. "Other assets recognized by the China Securities Regulatory Commission" provides space for future development. Once physical commodities and real estate are approved by the Securities Regulatory Commission, they can be included in the investment scope.

Trust is the most popular financing tool in the past three years and the most popular financial product for high-end investors. However, from the perspective of existing laws, special plans are more flexible and are one of the least restricted legal financing tools.

(I) Less restrictions on investors

Special plans and trusts are not restricted to customers with a single investment of more than 30 million. But for clients below 3 million, in terms of investment numbers, the special plan can accept 200 people, while the trust can only accept 50 people, which is a quarter of the special plan.

(II) No temporary restrictions on investment projects

The CSRC currently has no restrictions on the investment targets of special plans, and the CBRC has various restrictions and requirements on investment in the trust industry. The restrictions of the CBRC may be business partners. For example, in 2010, the CBRC stipulated that the balance of financing banking and credit financial cooperation business shall not exceed 3o% of the balance of banking and credit financial cooperation business, which greatly reduced the space for trust and bank cooperation It may also be a certain investment category. For example, in order to regulate real estate trusts, the CBRC issued a notice from the General Office of the China Banking Regulatory Commission on real estate trust business risks of trust companies and other documents from the beginning of 201 O to September 2012. The scope of business, project qualifications, product structure, project filing, etc. put forward all-round requirements.

(3) Low capital requirements

The CSRC currently does not have clear capital requirements for special plans, but only stipulates that special subsidiaries must be established to carry out special asset management business, and the registered capital of the subsidiaries should not be less than 20 million yuan. In contrast, the China Banking Regulatory Commission issued the trust company's net capital management measures in 2010, stipulating that the trust company's net capital must not be less than 200 million yuan, and must not be less than 100% of the sum of various venture capital and net assets. 40%. The CBRC issued a notice on matters related to the net capital calculation standard of trust companies in 2001, putting forward comprehensive requirements for the net capital management of trust companies. The requirement for the net capital of the trust industry means that with the increase in the size of trust assets, trust companies need to continue to replenish capital. If the capital is insufficient, they cannot start new businesses, which may cause the trust product to "break down." This is not conducive to the long-term and stable access of funds to companies financed by the trust plan, nor is it conducive to the investors' long-term continuous investment trust plan. In contrast, the current specialized business subsidiaries will not restrict business development due to insufficient capital and have the ability to continue to provide products.

Responding to the "rigid payment" competition of trust with innovation:

Although the "rigid redemption" of the trust industry is not explicitly stipulated, it has become an industry practice, which has greatly helped to enhance investor confidence. The so-called "rigid redemption" means that after the trust product expires, even if the project is at risk, the trust company must unconditionally redeem the principal of the investor and the "expected return" indicated at the time of purchase. The practice of "rigid redemption" has led many investors to consider the trust as "risk-free" and "high-yield". Before investing, it does not ask about the specific assets and operating model of the trust and only requires the trust to be redeemed at maturity.

However, the financial industry has its own development rules, and returns are always linked to risks, and there will be no "risk-free" and "high-yield" assets. According to the "Main Business Data of Trust Companies at the End of the Second Quarter of 2012" published by the China Trust Industry Association, the total trust asset size of the trust industry at the end of the second quarter has reached 5.5 trillion yuan, excluding about 32% of the scale of bank-trust cooperation and The scale of government-trust cooperation is 6%, and the scale of trust raising from the society is about 3.4 trillion yuan. The expected rate of return of this part of the commitment is generally around 8%, which means that the trust company distributes about 27 billion yuan of income to investors every year. In fact, the total owner's equity of the trust industry is only 180.7 billion yuan, and the capital does not adequately cover the risk of loss of income commitments and the principal of the invested projects.

As the capital of fund companies is generally lower than that of trust companies, and the capital of subsidiaries carrying out special plans is not high, it is expected that special plans will not generally promise "rigid redemption." No "rigid redemption" is a disadvantage in the short term, but may be an advantage in the long term. First of all, there is no pressure of rigid redemption, and special subsidiaries need not worry about the impact of major project risks and systemic risks on the company. Secondly, in order to compete with the trust, the specialized subsidiaries will work hard on innovation, expand new asset classes, explore new investment and financing areas, research new risk control methods, design products with different risk-return distributions, and provide investors with more Targeted financial services are conducive to the recognition of special plans for investors in the medium and long term.

All in all, the fund company's business will shift from the traditional pattern of focusing on secondary market investments and long-term surviving funds to a new business that focuses on listing listed and unlisted assets, and coexisting long-term products and maturity products. pattern. The special asset management plan not only provides new financing channels for enterprise development, but also provides richer options for investors to maintain and increase their assets.

1 Li Ke. Special Asset Management Plan-New Products of Fund Companies (A). China Urban Finance. 2012, 11:59 ^[1]