Asset Allocation Strategy Of Bank Wealth Management Transformation Under New Asset Management Regulations

With the continuous awakening of the wealth management awareness of Chinese residents and the rising demand for asset allocation,the wealth management business of commercial banks has developed rapidly in recent years and has become an important development area for commercial banks.However,on April 27,2018,the People’s Bank of China,China Banking and Insurance Regulatory Commission,China Securities Regulatory Commission,and the State Administration of Foreign Exchange jointly issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions",clarifying the asset management business.It is not allowed to promise to guarantee the principal and income.During the transition period to the end of 2020,the rigid payment will be broken,and the wealth management products that have operated in the capital pool,rigid payment,and term mismatch will be completely withdrawn from the historical stage.Although the new asset management regulations explicitly prohibit the nesting of wealth management products,nested asset management products with public funds as the underlying investment target are allowed in the wealth management business management measures,which is not in line with the FOF(Fund of Funds)that have emerged in recent years.FOF are gradually favored by investors with the advantages of professional investment management,risk diversification,lower investment threshold and unique management model.In response to the problem of my country’s commercial banks’ wealth management asset allocation business under the new asset management regulations,many banks have turned their targets to FOF.X wealth management business is a type of capital-guaranteed business and an important part of the wealth management business of commercial banks.For the X wealth management business,under the background of the new asset management regulations,it will be gradually withdrawn,and this part of wealth management customers will face the problem of fund acceptance.This article focuses on the target customers of X wealth management and the financial replacement of related FOF.On the basis of sorting out relevant domestic and foreign literatures,this paper will focus on the analysis of asset allocation of FOF in the transformation of bank wealth management business,in order to solve the problem of retention of wealth management customers in commercial banks.Finally,it puts forward suggestions for the transformation of the wealth management asset allocation business of commercial banks in my country,and actively adopts the active allocation mode of FOF to improve the ability of wealth management asset allocation business.The innovation of this paper is to propose a FOF model in response to the new asset management regulations issued by the regulatory authorities recently,which has a certain academic frontier and has strong theoretical and practical significance for commercial banks’ wealth management asset allocation business.