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Foreign Capital Private Placement Actively "Golden Signboard" Competitive Public Offering Track

2020/5/22 13:10:00 0

Foreign CapitalPrivate PlacementGold Lettered SignboardAthleticsPublic OfferingRacetrack

In May 19th, fidelity Asia Holdings Limited submitted the qualification examination and approval of public fund management companies, which is the third foreign body to apply for public fund license after BlackRock and Lu Bo ma.

In addition, the 49% stake in the Morgan fund has been transferred, and the first wholly foreign-owned holding fund is ready to come out.

As of the end of April 2020, 26 foreign private placement have entered China, and 77 private placement products have been put on record.

"Some foreign private placement also has the power to turn public offerings, and some powerful foreign private placement companies will apply for foreign capital raising licenses." In May 21st, Yang Delong, chief economist of Qianhai open source fund, said.

The entry of foreign capital private placement will eventually lead to the survival of the fittest, and the fund companies with management capabilities, brands and achievements will stand out.

"Public offering dream" of foreign capital

The foreign capital private placement in China is famous, and its parent company is a gold lettered signboard overseas.

For example, the world's largest asset manager, the world's largest hedge fund bridge, the world's largest listed Asset Management Co, the world's largest financial holding group UBS, the largest independent asset management agency in Europe, the world's largest CTA company Yuan Sheng capital, the largest European insurance company Allianz Group.

Reporters from the fund industry understand that most foreign private placement hope "private transfer to the public".

In April 1, 2020, China officially abolished the foreign shareholding ratio of public fund management companies. On the same day, BlackRock and Lu Bo Ma submitted the application for the public fund licence.

More than a month later, fidelity also submitted an application.

A foreign capital private fund manager told reporters that his company's goal is to get a public offering license in China in the future.

However, on the way of "private transfer", there are also private equity funds which are not intended to follow up immediately.

"We will not consider it for the time being. We want to make good performance first and get the market recognition before we apply for the public offering license." In May 21st, a foreign private equity official in China told reporters.

It explains, "many foreign private placement institutions in China have taken the priority of licensing. But our strategy in China is actually closer to Gao Yi, Jing Lin and Shui Quan. When the performance of our domestic business is recognized by everyone, it may take two to three years, and then we apply for a public offering license. This is a business trend. If it is only for the public offering license, it is not in line with our company's development strategy.

Despite the fact that sooner or later, the "private transfer" is the future direction of foreign capital private placement.

"A lot of" foreign investment private placement "in China are large public offerings overseas. Their experience of public offering management is more abundant. The first volunteer came to China to do public offering. For this kind of public offering private placement, private placement is mainly restricted by domestic policies and public license is not released. The director of fortune research and investment department, Fu Rao said.

In addition to foreign private placement targeting the "private transfer", the Chinese foreign joint venture fund company's foreign counterparts are also seeking to hold or sole proprietorship "public offering".

Not long ago, the Shanghai trust listed the 49% stake in the Shanghai stock exchange. Some market participants predict that Morgan will take the 49% stake and become the only direct shareholder of the Morgan fund.

According to public data, there are 53 Sino foreign joint venture companies in the 153 fund management companies in the public offering industry, among which 20 of the foreign institutional shareholding ratio is 49%, and only 2% of the foreign capital holding shares are completed.

"Foreign capitals want to own or hold shares. After all, fund companies are high-quality assets." A joint venture fund company said.

Who is the winner in the arena?

Reporter enquiries found that 77 foreign invested private placement products have been listed, including bond funds, active management of equity funds, quantitative funds, FOF products and other categories of investment products.

According to Fu Rao, although some foreign investment has entered China, their impact on the Chinese market is still relatively limited.

What is the performance of these foreign private placement? A person in the private sector said foreign private placement did not want to show short-term performance, but foreign investment has not yet entered the domestic market for a long time and has yet to achieve long-term performance.

However, a personage of Xuan Jia financial told reporters that the fund-raising channel of foreign private placement is relatively weak. For example, in the past few years, the private placement of BlackRock came back to private placement was only one million. The main reason is that foreign capital's pursuit of high certainty makes short term performance insufficient and the Commission level is low, so it still takes a while.

"The average strength level of foreign funded private placement is definitely higher than domestic level, and the maturity of investment system is high, and the awareness of risk control is strong." The above Xuan a financial personage said.

However, Fu Rao believes that "in a short period of time, foreign capital is difficult to occupy a larger market share."

The reason given by Fu Rao is that foreign managers will be more regulated in China. The fund association is divided into the management of fund managers at home and abroad, and the examination and approval of foreign managers will be more stringent. Second, overseas managers' investment methods and investment performance are hard to adapt to domestic investors.

"These two ways are actually worth recognition, but unfortunately, picky Chinese investors can't wait that long." Fu Rao said that overseas managers are very strict in risk control, so the industry deviations and styles deviated from their funds are very small, but the corresponding excess returns will also be smaller. Many overseas managers directly copy their strategies in the mainland, and inevitably they will not adapt.

A fund industry veteran who has participated in foreign institutional research has said that the establishment of a joint venture is to introduce advanced concepts, advanced methods and advanced strategies of the foreign party, but after the real operation, the performance is not very satisfactory. In the joint venture fund company, the foreign party does not show overall advantages compared with the domestic fund company. Finally, the market must speak with its achievements, and foreign investors will come in. If investors can not make money, investors will not buy their products.

"Will foreign capital be good enough in the future? It's hard to say that the future depends on performance, and the market is very realistic. The domestic fund will look at their market as usual. It points out.

"Foreign fund managers may not be able to occupy the Chinese market very quickly. In fact, a lot of excellent Chinese private fund managers do not lose to overseas managers." Fu Rao said.

Yang Delong also believes that foreign capital private placement has both competitive advantages and disadvantages. The advantage lies in the fact that foreign investment experience and investment style are relatively advanced. However, team localization is also important. "The entry of foreign giants will aggravate the competition between domestic public offering and private placement, but domestic institutions also have their own advantages, including channels and customer resources. Eventually, the survival of the fittest will be achieved, and the fund companies with management capabilities, brands and achievements will stand out.

 

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