I don't know if you have noticed that since the past few days, the net value data of most private placements can no longer be seen in places such as private placements.
1. It cannot be displayed
The reason is that on April 30 this year, the AMAC issued the "Guidelines for the Operation of Private Securities Investment Funds", which will be officially implemented on August 1.
It stipulates that securities firms or Internet consignment platforms must have a consignment sales relationship of private placement products in order to display performance.
Previously, the regulator has always required that private placements cannot publicly display their performance, but can only be displayed to qualified investors (who provide proof of 3 million investable financial assets).
However, in the past few years, many securities firms will release the net value of some private placements, and some Internet private placement agencies will also disclose the performance of a large number of private placements as long as the private placements are provided.
In the past, the market could easily see the net value data of private funds, which on the one hand has great benefits for private equity to gain market attention, but on the other hand, the regulator believes that this is contrary to the relevant requirements.
The most injured by the new regulations may be the private equity data agency, which can disclose fund data that will shrink significantly, affecting its business model; The second is the related private equity companies, the market itself is sluggish, and the supervision will become more and more strict in the future, and sales are said to be limited, and many companies cannot see any way out.
Second, the downward trend of private placement
In recent years, with the downturn of the market and the tightening of supervision, the overall trend of private equity in mainland China has been on a downward trend.
As of the end of June this year, the number of existing private equity fund managers in mainland China was 20,768, a decrease of 92 from the previous month. 8,200 private securities investment fund managers, a decrease of 40 from the previous month;
As of the end of June, the number of funds managed by private equity institutions in mainland China was 151257, a decrease of 744 from the previous month; The scale of funds under management was 19.89 trillion yuan, a decrease of 4.403 billion yuan from the previous month, and it was also the third consecutive month that the data was below the 20 trillion yuan mark.
At present, there are 20,000 private placements in China, of which nearly half are less than 100 million, and the total scale of these 10,000 is only 300 billion (including stocks and equity), that is, the average management scale is only 30 million.
The annual cost of maintaining a small private equity operation is about 2 million yuan, which is already stretched in a first-tier city to meet the minimum of 5 people and meet regulatory requirements.
However, if the average management scale of 30 million is calculated, and the average annual 1% management fee income is 300,000, then many companies will inevitably be in a serious loss state, and a large number of private equity funds will face bankruptcy in the next few years.
In fact, many loss-making private placements are already lying flat, and they are only one step away from liquidation and bankruptcy.
Moreover, judging from the thinking of the regulator and a series of policies, it is also obvious to take the route of supporting the good and eliminating the inferior and maintaining stability, cleaning up the private placements with small scale and insufficient strength, and restricting the private placements with excessive risk appetite, which is conducive to the clearing of market risks.
For example, the minimum scale of existence is reduced to 5 million yuan, and it is clarified that funds with a scale of less than 5 million yuan for a long time should stop subscribing. Private securities funds shall not participate in DMA business with more than 2 times leverage, and further control the level of business leverage.
This is obviously not good for small private placements and quantitative private placements, etc.
3. Stones from other mountains
After a series of restrictive measures on domestic private placements, we might as well take a look at the overseas experience in fund issuance and management.
I myself am more concerned about the information disclosure of Sister Wood's ARK fund.
Although some of Sister Mu's operations are not in agreement with each other, and the performance is also poor, the fund's information disclosure is unique.
Most of the ARK funds are actively managed ETFs, with their own official websites, which disclose their net worth performance on a daily basis:
And all positions after the close of trading are published daily, so that the information is very transparent.
The domestic public offering is to announce the top 10 holdings every quarter, and all positions are announced every six months, and there is a lot of information delay; However, mainland private equity does not disclose its positions to holders, and you don't know what it bought even if it is liquidated and dissolved, which will bring many problems, such as benefit transfer, misleading performance, moral hazard, etc.
Finally, if the United States fund market is a laissez-faire, fully disclosed information, efficiency-first market, then China's fund market has its own characteristics, stability and security first, to serve the real economy and industrial direction, understand this, in order to understand a series of behaviors and trends.
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