Asset management product is a standardized financial product that Public Offering of Fund management company or securities company, which is approved by the regulatory authorities, raises funds from a specific customer or is entrusted by the property of a specific customer to act as an asset manager, and the custodian institution acts as an asset custodian, and invests with the entrusted property for the benefit of the asset client. At present, there are 91 Public Offering of Fund companies in China, but the CSRC has only approved that 67 Public Offering of Fund companies can set up wholly-owned subsidiaries to do specific asset management business (these can be found on the website of the CSRC)

Differences between asset management products and trust products:

Similarities:

1. It must be reported to the regulatory authorities, the trust is supervised by the CBRC, and the asset management plan is supervised by the CSRC;

2. There are strict regulations on fund supervision and information disclosure;

3. The subscription method is the same, and the project contract and instructions are similar;

4. Different channels with the same essence belong to investment and financing platforms, which can cross many fields such as capital market, money market and industrial market.

Differences:

1. There are only 68 trust companies in China, while there are only 67 asset management companies, so the scarcity of license resources is more obvious;

2. Asset management companies have strong investment and research capabilities, especially in macroeconomic research and industry research. Choosing investable projects under the guidance of such a research team can effectively increase the bargaining power of financing parties and reduce investment risks;

3. The trust is reported to CBRC once, and it can be established after it is fully raised; The asset management plan shall be reported twice, once at the beginning of the fundraising, once for capital verification after the fundraising is completed, and it shall be established two days after the capital verification;

4. The asset management plan has double credit enhancement, which has been reviewed by the asset management company and the regulatory authorities.

5. The asset management plan is small, with a maximum of 2 places.

6. The income is high, and the asset management plan is generally 1%/ year higher than the trust plan; The term is short, and the term of the asset management plan generally does not exceed 2 years

Future trend: The fund special asset management plan is the result of financial innovation advocated by the CSRC. Due to the advantages of strict supervision, flexible operation, high income, unlimited small amount and professional management, it is an inevitable trend for the future fund special asset management to be used to split trust or initiating trust products.