Research On The Impact Of The New Asset Management Regulations On The Yield Of Financial Products Of China’s Commercial Banks

Since 2004,China’s wealth management market has developed rapidly,but behind the prosperity of the market,there are also many regulatory loopholes such as rigid redemption.Therefore,in April 2018,China introduced many regulatory policies,including the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions"(hereinafter referred to as the "New Asset Management Regulations").The release of new asset management regulations is considered by the industry as a signal of the arrival of a strong regulatory era.What impact will the new regulations have on the yield of wealth management products? Can commercial banks,which occupy half of the market share of wealth management products,make timely adjustments based on changes in the yield of wealth management products? In the new stage of the development of the wealth management product market,research on these issues is of great practical significance.Based on this,this article is based on the background of the great changes in the asset management era,focusing on the new stage of the development of the wealth management product market,and deeply analyzing the impact of the new asset management regulations on the yield of wealth management products of Chinese commercial banks.On the basis of systematically reviewing the latest research results at home and abroad,this article delves into the impact mechanism of new asset management regulations on the yield of commercial bank wealth management products,and sorts out the current situation of commercial bank wealth management products in China.Based on this theoretical basis and current situation,a panel linear regression model is constructed to empirically analyze the impact of new asset management regulations on the yield of commercial bank wealth management products,Finally,based on empirical conclusions,relevant policy recommendations are proposed for different types of commercial banks.The research conclusions of this article are as follows:(1)Theoretical analysis shows that the new asset management regulations have a significant impact on the yield of commercial bank wealth management products.The impact of the new asset management regulations on the yield of bank wealth management products can be achieved by breaking rigid redemption,prohibiting term mismatch,and restricting multi-layer nesting;(2)The current situation analysis shows that before and after the release of the new asset management regulations,there have been significant changes in the issuance quantity,breakeven structure,term structure,and product yield of China’s bank wealth management products.This is mainly reflected in the decrease in the issuance quantity of bank wealth management products after the release of the new asset management regulations,with non breakeven wealth management banks accounting for the majority,medium and long-term wealth management products becoming the mainstream of term structure products,and the yield of wealth management products gradually decreasing;(3)Empirical analysis shows that the new asset management regulations will reduce the return on wealth management products of Chinese banks and have heterogeneous effects.This is manifested as the new asset management regulations have no significant impact on the return on wealth management products of state-owned commercial banks,but have a significant negative impact on the return on wealth management products of joint-stock commercial banks and urban commercial banks;The results of mesomeric effect show that breaking the rigid cashing and prohibition of term mismatch can play a part of intermediary role.The new asset management regulations have increased the proportion of non breakeven financial products issued by commercial banks,compressed the arbitrage space using the term structure,which makes the yield of financial products of commercial banks decline;Compared to the release of the new asset management regulations,the implementation of the new regulations has a more significant negative impact on the yield of commercial bank wealth management products,indicating that there is still room for a decrease in the yield of commercial bank wealth management products after the implementation of the new regulations.The new asset management regulations can be regarded as a "epoch-making" strong regulatory policy in the wealth management market,which has significantly reshaped the market pattern of bank wealth management products.As a new asset management policy released in 2018 and officially implemented in 2022,studying the impact of new asset management regulations on the yield of commercial bank wealth management products is a very novel topic.Therefore,this article analyzes the mechanism of the impact of new asset management regulations on the yield of commercial bank wealth management products and uses a panel linear regression model for empirical analysis,hoping to enrich and supplement the theoretical field of this study,I hope to provide reference for the development and transformation of commercial banks in the new stage of financial product market development.