An Comparative Investigation On Asset Management Business Model Of Financial Institutions In China

With the continuous development of economy and residents’growing accumulation of wealth, asset management business has become a very common and important way of modern financial services both in the relatively mature financial markets abroad and in the emerging markets.First of all, from the macroscopic level, the development of asset management business is of far-reaching significance in promoting the reform of Chinese management process and the financial service innovation. No matter which kind of financial institution carry out the asset management business, all need to allocation assets in different financial areas in order to complete the asset value better. In other words, the business inevitably means to break through the financial boundaries, thus becoming a leading area of financial mixed management. Its mixed management features make it be the most active financial innovation activities in financial business.Second, from the institutional level, asset management agencies actually act as a medium role of money in the process of conduct asset management business. In client-side, it connect asset holders, commissioned to manage clients’assets and thus obtain provisional disposition of surplus money; In investment-side, it connect financiers and finance them by investing in various financial assets and the entity economy with the aid of all kinds of financial products.In addition, the asset management business, with its unique characteristics of low capital and low level of risk, get the favour of different financial institutions. Because of this, it not only involves numerous financial institutions, but also includes the diversity of financial products, making it the most competitive areas in financial sector. Now, the competition is performed in our country. Since2012, the securities regulatory commission, insurance regulatory commission and other regulators had staged a series of new policies for the asset management market. The deregulation policy orientation signaled the arrival of the "generic asset management ear" in our country. As the operational boundaries of asset management business become blurred, the asset management industry in China enters into the important transition period through the reconstruction of the industry landscape.First of all, the institution access restrictions of the asset management business are gradually broken and multiple business sectors face competitive landscape reconstruction, especially in insurance asset management business and public offering fund business sector which are open to more different financial institutions. Secondly, different institutions endowment homogeneity between different asset management products under different names from different substitutions is becoming more and more obvious. How to find their own positioning in the homogeneity competition and how to make different business strategy development in the landscape reconstruction period have become the focus of many financial institutions. What’s the development of five major types of financial institutions in the asset management, such as funds, trust, securities, insurance and bank? What are their respective asset management business model and their comparative advantages? How to realize cooperation in competition at the same time? How to develop their own strategies to cope with the challenges and opportunities? All of these have become an important topic in financial practice and theory.Base on this research background and these questions, this paper completed the comparative study on asset management business of different financial institutions in our country, trying to explore an valuable answer. This paper combines the normative analysis and empirical analysis, and mainly on qualitative analysis and quantitative analysis as auxiliary. According to the latest regulatory policy and statistics, this paper makes a comparative analysis on asset management business between the five types of financial institutions in China for their development present situations, market positioning and business operations. Then it summarized the difference and comparative advantage of different institutions in the necessary parts of asset management business model, including funding sources, customers, marketing model, capital operation and return on investment. On the one hand, these differences and comparative advantage in asset management market encourage financial institutions to participate in the competition; The above differences and comparative advantage, on the other hand, have prompted strong motivation between different institutions in turn to seek for cooperation. So after the analysis in the competition, this paper also discusses the cooperation strategy of different institutions, and different advises of business development strategies, hope to help them find their own positioning and seek professional development to cope with increasingly fierce business competition. Specifically, the structure arrangement of this paper is as follows:The first part elaborated the selected topic background, research significance, the structure arrangement, innovations and shortcomings, combing the existing literature about the asset management business.Beginning from the theory of asset management business, the second part gives definition to asset management category of different financial institutions in our country. When comparing the current situation of development of asset management business of different institutions, a preliminary analysis of reason is further made.The third part mainly makes comparative analysis of financial institutions in asset management business in market positioning, including funding sources, customers, and marketing model.The fourth part focuses on comparative analysis of these institutions operating aspects of asset management business model, including the field of capital operation, profit model, and business performance.The fifth part summarizes comparative advantages of different institutions, and makes comparative analysis of competition and cooperation strategy for them in the asset management business in China market, and further to tailor business development strategy for different institutions.