Bond Market "Live Water" Bullish Bond Yields Or Lower

The supervision and management measures of commercial banks' financial services (Draft for comment) (hereinafter referred to as "new financial regulations") have been issued to commercial banks recently.

In view of the possible impact of the new regulation on the bond market, the market generally believes that the new regulation will make banks' financial capital investment and related processes more pparent, and investment target assets will continue to tilt to asset class bonds, and the yield of the bond market is expected to benefit and go down.

Relevant analysis from the industry shows that in recent years, the bank's financial management that has continued to grow is mainly invested in bonds and money markets, cash and bank deposits, and various non-standard assets.

From the point of view of all kinds of commercial banks' investment in financial management, the risk preference of big firms is relatively small.

Among them, non-standard assets are mainly entitled to income rights and trust loans.

On the whole, non-standard investment has always had some risks, but it is still relatively controllable at present.

Guotai Junan and other institutions believe that this time

The degree of severity is far beyond the market expectations, showing a significant change in the direction of regulation. It is expected that there will be relevant policies in the future in terms of insurance and finance, banking outsourcing and fund subsidiary channels.

As the new regulation greatly restricts the investment of non standard assets, this will greatly reduce the difficulty of supervision and enhance the control ability of the supervision level on the overall risk, which will greatly increase the "living water" that flows into the bond market.

Recently, a number of agencies have pointed out that after the implementation of this new financial regulation, bank financing can continue to invest through channels such as fund accounts and brokerage channels, but the investment scope of entrusted financial products may vary greatly.

The direction of bank asset allocation is nothing more than the real economy and financial market. Under the condition of weak financing demand of real economy, the regulation of non-standard assets is becoming stricter, and the supervision of investment equity assets will increase. Obviously, it will lead to an increase in the proportion of investment bonds and cash assets.

Shen Wan Hongyuan said that the implementation of the new financial regulations will bring about many aspects, which will be more favorable to the bond market as a whole.

First of all, before equity and non-standard assets support financial management.

An important factor, the implementation of the new financial rules will accelerate the downtrend of financial products.

Second, the advantage of accelerating the downward trend of financial returns and the interest rate of deposits in the same period gradually narrowed, and the growth of financial management scale will slow down.

In addition, financial management of basic banks can not be voted non-standard, which will enhance the trust advantage, and the scale is expected to reproduce high growth.

From the interpretation of the frontline traders in the bond market, the view of the mainstream market organizations also believes that

It will benefit from this.

A survey of bond market issued by Haitong Securities in August 1st showed that most of the respondents in this survey, mainly based on bond researchers and bond investment managers, believed that strict control over investment in equity assets by financial products would be beneficial to the bond market.

Among them, 54% of respondents thought it was generally positive, while 18% of respondents thought it was a major positive. Only 16% thought it was bad for the bond market.

Insiders pointed out that after the implementation of the new financial regulations, the channel business of non banking institutions such as fund subsidiaries and securities dealers may face some challenges of pformation, but the relevant agencies will have opportunities for further development and expansion in bond asset investment.

This will have a long-term positive effect on the development of the bond market.