These Measures are applicable to wealth management companies and the wealth management products issued by them. Article 3 The term "liquidity risk" as mentioned in these Measures refers to the risk that wealth management products cannot obtain sufficient funds in time at a reasonable cost by realizing assets. To meet the redemption needs of investors in wealth management products and fulfill other payment obligations. Article 4 A wealth management company shall assume the main responsibility for the liquidity risk management of wealth management products, establish and improve the liquidity risk management system of wealth management products in accordance with these Measures, manage the liquidity risk of wealth management products professionally, prudently and diligently, and ensure that the investment operation of wealth management products is stable, the net value valuation is fair, and the legitimate rights and interests of investors are not harmed and treated fairly.
To carry out liquidity risk management of wealth management products, wealth management companies shall establish an effective risk isolation mechanism to prevent liquidity risk from spreading. A wealth management company shall, in accordance with the principles of fair trade and fair price, strictly manage the transactions between wealth management products and between wealth management products and the company and its related parties, conduct special monitoring, analysis, evaluation, authorization, approval and verification of related transactions, and effectively identify, monitor, warn and prevent all kinds of improper transactions. Article 5 The China Banking Regulatory Commission and its dispatched offices shall supervise and manage the liquidity risk management activities of wealth management products of wealth management companies according to law. Chapter II Governance Structure and Management Measures Article 6 A wealth management company shall establish a well-organized governance structure for liquidity risk management of wealth management products, with clear responsibilities, effective checks and balances and reasonable incentives and constraints, designate departments to set up special posts, and be equipped with sufficient competent personnel to assess and monitor the liquidity risk of wealth management products, and supervise the implementation of the liquidity risk management system. The relevant departments, posts and personnel of liquidity risk management of wealth management products should be independent of the investment management department and have clear and independent reporting paths. Article 7 The head of the department responsible for the investment, operation and management of wealth management products of a wealth management company is mainly responsible for the liquidity risk management of wealth management products. Article 8 A wealth management company shall establish a strict assessment and accountability mechanism for liquidity risk management of wealth management products, and incorporate the liquidity risk management status into the assessment and evaluation criteria for investment and operation managers of wealth management products. Article 9 A wealth management company shall, according to the nature and risk characteristics of wealth management products, establish and improve the liquidity risk management system of wealth management products, and regularly evaluate and improve it, including but not limited to:
(a) investor concentration management, purchase and redemption restrictions, measures to be taken when it has a significant adverse impact on investors, monitoring, control and evaluation of huge redemption;
(2) Pre-assessment of investment portfolio, setting a lower limit for the investment proportion of highly liquid assets, setting an upper limit for the investment proportion of low liquid assets, limiting the concentration of investment assets and limiting the investment of high-risk assets;
(3) pressure test;
(4) Emergency plan. Article 10 A wealth management company may comprehensively adopt the following measures to deal with the liquidity risk of wealth management products according to laws and regulations and wealth management product contracts:
(1) Measures to deal with subscription risks, including: setting the upper limit of the subscription amount of a single investor, setting the upper limit of the single-day net subscription ratio of wealth management products, rejecting large subscription, suspending subscription, and other measures stipulated by the China Banking Regulatory Commission.
(2) Redemption risk response measures, including: setting the redemption ceiling, delaying the handling of huge redemption applications, suspending the acceptance of redemption applications, delaying the payment of redemption money, charging short-term redemption fees, suspending the valuation of wealth management products, swinging pricing, and other measures stipulated by China Banking Regulatory Commission.
The wealth management company shall specify the implementation conditions, initiating departments, decision-making procedures, business processes and other matters of various liquidity risk response measures to ensure the timely, orderly, transparent and fair implementation of relevant measures. Article 11 After taking measures such as delaying payment of redemption money, suspending the valuation of wealth management products, swinging pricing, etc. , report to the China Banking Regulatory Commission or its dispatched office within 3 working days, explaining the redemption pressure it faces, the market liquidity, the measures it has taken, the time required to resume normal business, and the impact of relevant measures on wealth management products.
Where a wealth management company applies the liquidity risk response measures listed in Article 10 of these Measures, it shall submit relevant information in the national banking wealth management information registration system within 5 working days after the end of the current month. Article 12 A wealth management company shall designate a department to be responsible for the implementation and evaluation of liquidity risk stress test of wealth management products. Relevant departments should be relatively independent of investment management departments.
When setting stress test scenarios, wealth management companies should fully consider the impact of various asset investment strategies and methods on asset liquidity under different stress scenarios, the time required for liquidation and possible price depreciation, as well as the payment obligations to creditors, counterparties and other third parties except investors' redemption, and pay attention to the impact of market risk and reputation risk on the liquidity risk of wealth management products.
Wealth management companies should also establish an open monitoring and early warning framework for liquidity risk of wealth management products with stress testing as the core.