The authorities may expand the direct financing function of bank asset management subsidies, said Tao Ling, deputy director of the Financial Stability Bureau at the People’s Bank of China, The Paper reported.
Under the new regulations, bank asset management subsidies should better serve the real economy, such as expanding their role in direct equity financing, according to Tao.
Asset management mainly serves the real economy through three channels, including basic assets, investment tools and large-scale assets.
Bank asset management subsidies should mainly play a role in the allocation of large-scale assets in the future, and help to resolve systemic risks, said Hong Lei, president of Asset Management Association of China.
Li Wenhong, director of Innovation Department of China Banking and Insurance Regulatory Commission, thinks the establishment of asset management subsidies, in the long run, will introduce healthy competition in China’s asset management industry.
Li says the latter subsidies have their own advantages and specialities in terms of management mechanisms, business philosophy, investment operations and talent reserves.