Traditional financing business
1. 1. Trust enterprises
The financing demand for infrastructure investment and real estate investment in China has been relatively strong. In the past, products were issued to raise funds through trust and brokerage asset management plans. With the establishment of fund subsidiaries, they launched a trust-like business to provide funds for these financiers. Focusing on the combination of industry and finance, we will invest in transportation, energy, industrial park infrastructure, water affairs and environmental protection enterprises by means of creditor's rights, income rights and private equity. On the basis of cooperation with high-quality real estate enterprises at home and abroad, we will invest in better real estate enterprises and projects by combining equity, creditor's rights and stock debts.
1.2. Equity pledge business
In the past, the equity pledge business of listed companies was mostly carried out by banks and trust companies. With the establishment of fund subsidiaries and the continuous expansion of business, more and more fund subsidiaries began to intervene in this business field. At the same time, the fund subsidiaries of the banking department show certain advantages in this business. Subsidiary companies such as Minsheng Bank Asset Management, ICBC Credit Suisse and China Merchants Fund have successively launched equity pledge business, providing financing in the form of income right transfer and repurchase through competitive financing cost and appropriate pledge rate.
The fund subsidiaries set up a special asset management plan to raise funds for the transfer of the equity income rights held by the financing party, and the financing party takes the pledge of shares of listed companies or high-quality unlisted companies as the main credit enhancement measures.
2. Investment business
In the early days of its establishment, fund subsidiaries often played the role of financing channels when docking with banks, trusts, futures companies, brokers and private equity funds, or when docking with local financing platforms and listed companies. With the positive business transformation of subsidiaries, investment business is increasingly favored. Relying on the strong investment and research team of the parent company, subsidiaries actively explore the development of investment business and enhance their core competitiveness.
Subsidiaries of fund companies can set up corresponding investment management products based on the investment advantages formed by the original public investment and research team. From traditional bonds and stocks, various product design innovations have emerged, such as designing products with investment interest rates, exchange rates, commodity futures and financial derivatives, and even launching cross-border arbitrage products.
3. Asset securitization business
In asset securitization, subsidiaries can package some non-standard trust creditor's rights assets and trade them on the exchange or OTC market. In particular, the securitization of credit assets can be carried out through cooperation with banks.
4. Channel service
Under the supervision of relevant policies in China, such as the relevant credit policies of commercial banks, it is forbidden to directly issue loans to some industries or enterprises that do not meet the requirements of risk control. Under such circumstances, the bank's funds will eventually flow to enterprises that need financing through "channels" such as trusts, securities companies or fund subsidiaries.
Previously, the channel business of trust and securities companies developed rapidly. As a "channel" organization, external assets are executed as a process in the company in the form of product contracts by lending licenses, and they do not directly or personally participate in the asset management of this business, and do not need to actively and systematically carry out project development, product design and arrange risk control measures, so they bear less risks. Compared with trust companies, fund subsidiaries have no capital restrictions and lower costs.