The Impact Of New Asset Management Regulations On The Price Of Financial Listed Companies

Since the first cemetery fund appeared 1991 and the first bank wealth management product was launched in 2004,China's asset management industry has gradually developed.In recent years,with the continuous increase of China's economic volume,the steady growth of GDP and the rapid development of the financial industry.Among them,the asset management business of financial institutions has developed rapidly,and the scale of asset management has increased year by year,covering commercial banks,securities companies,fund companies and other financial institutions.China's asset management industry has become an important part of the financial market.However,we also can see that asset management is chaotic,and regulatory gaps have led to the savage growth of illegal businesses.The problems of multi-layer nesting of products,rigid payment of wealth management products,and regulatory arbitrage have emerged.In response,on April 27,2018,the People's Bank of China issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions",a guidance document.The definition of asset management business is clear,covering all types of financial institutions,emphasizing the realization of penetrating supervision of asset management business,and more stringent supervision of financial risks.The promulgation of this policy document has initiated the development of asset management business in the financial industry.To a crucial guiding role.This article empirically analyzes the impact of the introduction of new rules on asset management on listed financial institutions.Considering the scale,the importance of the financial system,and the number of listed companies,this article takes commercial banks and securities companies as the main research objects,and selects two types of samples of all listed commercial banks and securities companies in Shanghai and Shenzhen A shares before the new rules on asset management are promulgated.Using the event research method,the date of the introduction of the new rules for asset management is the event date,20 days before and after the event date is the event window period,and six months before the window period is the estimated period.Return to the market model during the estimation period and apply the estimated parameters of the market model to the event window period to find the abnormal return AR and cumulative abnormal return CAR of individual stocks to analyze the impact of the new rules on asset management on the policies of commercial banks and securities companies And compare the two affected by the new regulations.In addition,in order to further study the impact of the new capital management regulations imposed by different commercial banks,this article continues to use the calculated cumulative abnormal return rate CAR of a single stock of a commercial bank as the explanatory variable.Non-interest income ratio,the three explanatory variables of the nature of the company,and the cost-income ratio,non-performing loan ratio,net interest margin,return on net assets,and asset-liability ratio.Five commercial bank operating indicator variables are used as control variables.At the same time,further research on different securities companies Influenced by the new rules on asset management,the three explanatory variables of the securities company's net capital,net income / net capital of the asset management business,and return on net assets,asset-liability ratio,and earnings per share were selected as control variables..This paper finds through empirical evidence that the introduction of new regulations on asset management does have an adverse effect on the stock prices of commercial banks and securities companies.The specific performance is that the cumulative average abnormal return rate CAAR of commercial banks is less than 0 during the event window period(-9,20),and it is declining continuously as the event period progresses;It also keeps dropping,and is less than 0 in the(5,20)period.Through comparative analysis,during the event window,the cumulative average abnormal return CAAR of securities companies was greater than the cumulative average abnormal return CAAR of commercial banks,and the share price of commercial banks was adversely affected by the new regulations on asset management than securities companies.By regression analysis of the cumulative abnormal return rate CAR of commercial banks and securities companies,it is found that the cumulative abnormal return rate of banks CAR is negatively correlated with the principal-guaranteed wealth management products / wealth management product balances and non-interest income.The cumulative abnormal return rates of large commercial banks CAR is significantly larger than small and medium commercial banks.In addition,the cumulative abnormal rate of return CAR is positively related to the cost-to-income ratio,negatively related to the non-performing loan ratio and net interest margin,and not significant in return to the return on net assets and the asset-liability ratio;at the same time,the cumulative abnormal rate of return of securities companies CAR and asset management The net income / net capital of the business is significantly negatively correlated,but it is not significant with the return result of the net capital of the securities company.In addition,there is a significant positive correlation between the cumulative abnormal return rate CAR and earnings per share,and the regression results with the return on net assets and the asset-liability ratio are not significant.Based on the above empirical analysis,this article concludes that the new asset management regulations propose to break the rigid redemption,restrict banks from investing in non-standard assets in public wealth management products,and promote the net value transformation of wealth management products in banks.In the long run,the new rules on asset management are driving commercial banks to standardize their management and help prevent financial risks.However,in terms of short-term benefits,the introduction of new rules on asset management will have an adverse impact on the stock prices of commercial banks,especially for small and medium-sized commercial banks that currently have a high balance of capital preservation and wealth management.Explore effective ways to rationally digest capital protection and manage wealth and transform non-standard assets into standard assets.Secondly,through empirical research,this paper finds that the new rules on asset management have also adversely affected securities companies in the short term,especially those securities companies with a larger net income / net capital account for asset management business.Through a comparative analysis of commercial banks and securities companies,we find that the new regulations on asset management have less adverse effects on securities companies than on commercial banks.The main reason is that some of the new regulations on asset management have greater restrictions on commercial banks.The breaking of the rigid redemption requirement of commercial bank wealth management products has led investors to worry about the future development of the bank,making the stock price trend of banks lower than market expectations.On the other hand,compared to the importance of wealth management business to commercial banks,asset management business is a smaller part of the main business operations of securities companies,so the impact of new regulations on securities companies' capital management will be smaller than that of banks.