“Money rice oil salt” | about the New Year “money” way!Is bank finance still “sweet”?

2022-04-24 0 By

Welcome the God of wealth on the fifth day of the first lunar month.At the beginning of the New Year, people may choose a variety of bank financial products to invest, no matter they receive the year-end bonus from the company or the red envelope from their elders, so that “money grows money” and the red envelope becomes more and more abundant.But this year, the news that the bank officially withdrew the “capital preservation” financial management made many people panic.What’s going on here?The year 2022 is known as the “first year of new regulations on asset management”.After a transitional period of more than three years, the Guidance on Regulating the Asset Management Business of Financial Institutions (i.e., the New Rules on Asset Management) officially began to be implemented this year.This means that we are familiar with the principal and interest protection financial products officially withdraw from the historical stage, bank financial management is fully net, no fixed rate of return, banks regularly announce the net value of products according to the investment situation, investors have to bear part of the investment risk.As early as April 27, 2018, the central bank, the CSRC and safe, silver circ jointly issued new rules on information technology, the investment scope, leverage constraints, several aspects such as information disclosure requirements, aims to guard against financial risk, strengthen the ability of financial services entity economy, maximum limit to eliminate regulatory arbitrage space structural reforms and promote financial supply side.Some industry experts said that as break-even financial products have become “the past”, breaking rigid payment and adopting market value method for valuation have become the new keywords of financial products.According to the New Rules on Asset Management, the meaning and manifestation of rigid payment are as follows: first, the issuer or manager of asset management products violates the true and fair principle of net value determination and guarantees the principal and income of the products;Secondly, by means of rolling issuance, the principal, income and risk of asset management products are transferred among different investors to achieve the principal and income protection of the products;3. If the asset management products cannot be redeemed on schedule or it is difficult to be redeemed, the financial institution issuing or managing the asset management products shall raise funds to repay or entrust other institutions to repay;Other circumstances identified by the financial regulatory department.In charge of the People’s Bank of China said that rigid payment off the information technology products, generations of “financial management”, the nature of higher risk-free rate level, interfere with the price of money, not only affect plays a decisive role in the allocation of resources, and weakens the market discipline, leading some investors risk speculation, financial institutions not dutiful, moral hazard is more serious.Pan Gongsheng, deputy governor of the People’s Bank of China, has publicly stated many times that rigid payment should be broken, default events should occur naturally and investors’ risk awareness should be cultivated on the premise of avoiding systemic regional risks.Thus strengthening market discipline and eliminating market distortions.It is worth noting that some experts said that the new rules will give a certain impact to the group that has been used to guaranteeing the principal and return, but the risk that financial products actually give investors has not increased significantly.At the same time, as banks adopt the market value method and follow the market mechanism, future products will be more diversified, and investors will have more choices and return space.In short, the risk and return of investment are always twin brothers.For the elderly, office workers and other people who are afraid of risks and think that the deposit income is too low, bank financing is still a better investment choice.In addition, you can also choose lower-risk investment options, such as money funds, national bonds and other investment channels, which are safer and yield is higher than bank deposits.The financial insurance has a long investment period, poor flexibility, but strong stability.No matter what kind of investment, the higher the return, the greater the risk.Investors must consider their risk tolerance and choose the right products more rationally, rather than blindly chasing hot spots or chasing the rise and fall.Feature: “Money, rice, oil and Salt” — your financial bible