candycrushsagadownload| The industry's first insurance asset management "ABS" order of 1.264 billion yuan was implemented

Source: Beijing Business Daily

Insurance asset management companies in the exchange pilot asset securitization (ABS) business ushered in a new starting point. May 12thCandycrushsagadownloadBeijing Business Daily reporter learned that recently, Taikang asset issuance market the first insurance asset management company as the plan manager of enterprise asset securitization products. As the ABS business opens the door to insurance capital institutions, ABS's new insurance "players" such as Pacific Asset continue to act, or have applied for ABS products on the Shanghai Stock Exchange and have been accepted, or have publicly expressed that they will actively participate.

Industry insiders said that ABS products are issued on the basis of stock assets with stable cash flow characteristics, which is consistent with the investment needs of insurance funds. This successful issue will help insurance funds to better allocate assets. With the continuous increase of market participants and the continuous promotion of product innovation, insurance asset management ABS business is expected to become an important part of China's asset securitization market.

The first order landed.

On May 8, Taikang assets as the plan manager, "Taikang assets-CLP Leasing No. 1 carbon Neutralization Green Asset support Special Plan" (hereinafter referred to as "the special plan") was successfully issued on the Shanghai Stock Exchange. The scale of the project is 12.Candycrushsagadownload6.4 billion yuan.

The above-mentioned special plan is since the Shanghai and Shenzhen exchanges issued a letter of dissent to the first batch of five insurance asset management companies, including Taikang assets, on October 13, 2023, agreeing to carry out asset securitization (ABS) and real estate investment trust (REITs) business on a pilot basis. since the market first issued enterprise asset securitization products with insurance asset management companies as plan managers.

It is understood that ABS is a process of transforming assets into securities products for trading and investment, and ABS products have become one of the most important varieties in China's asset securitization market. "the key to ABS is the mortgage, either the existing asset or the expected cash flow of the asset." As for the operation logic of ABS, Wang Zhaojiang, executive director of Shenzhen Beishan Changcheng Fund Investment and Research Institute, previously told Beijing Business Daily that it is through mortgage to raise funds, achieve business operation, expand sales, and then repay principal and interest through income.

Further, the original owner of the product is CLP Investment and Financial Leasing Co., Ltd., the company provides one-stop, professional and high value-added comprehensive business solutions in the fields of new energy power generation, energy storage, energy conservation and environmental protection, information and communications, urban energy and so on.

"the original owner of the ABS product is CLP Investment and Financial Leasing Co., Ltd., and its asset pool is mainly composed of high-quality assets in the field of new energy power generation, reflecting the current trend of energy structure transformation and clean energy development in China." Zhi Peiyuan, an enterprise tutor for master's degree students in the School of Management of China University of Mining and Technology (Beijing), said in an interview with Beijing Business Daily that the successful release of this product not only demonstrated the professional ability of insurance asset management companies in asset management and risk control, but also provided new investment channels for insurance funds to enter the ABS market, helping to broaden the scope of application of insurance funds and improve the rate of return on investment.

So, what are the advantages and characteristics of insurance asset management ABS products? Gao Zelong, vice chairman of the digital economic platform special committee of the China Communications Industry Association, said that it is mainly reflected in stable cash flow, high rate of return, flexible investment strategy and so on. The underlying assets of ABS products usually have stable cash flow characteristics, which helps to reduce investment risk. ABS products usually offer higher yields than traditional bond products, helping to boost investment returns. According to their own investment preference and risk tolerance, insurance asset management companies can flexibly choose the strategy and proportion of investment in ABS products.

This time, Taikang assets successfully issued the first insurance asset management ABS product as a plan manager, which is the first landing case after the Shanghai and Shenzhen exchanges issued a letter of dissent to the first five insurance asset management companies. in response, Zhi Peiyuan said that insurance asset management companies have made a breakthrough in carrying out asset securitization (ABS) business on a pilot basis on the exchange, indicating that China's asset securitization market has entered a new stage of development.

Scale will expand risk management is indispensable

With the successful landing of the business pilot, insurance asset companies are joining them one after another. In addition to Taikang assets, two ABS products of Guoshou assets have been approved by the exchange, and one ABS product of Taibao assets has been accepted by the exchange. In addition, a number of insurance asset companies that have been approved for the pilot have also publicly expressed their active participation. Among them, PICC assets said that after obtaining the qualification of asset securitization business, the company deeply participated in asset securitization business as both asset securitization manager and investor.

Beijing Business Daily reporter combed found that the basic assets of the above ABS products are mainly new energy, construction machinery and equipment. For example, the "China Life-Chuanggong Financial Leasing Asset support Special Plan" declared by Guoshou assets is the original owner of Jiangsu Xugong Construction Machinery Leasing Co., Ltd., and the basic assets are the construction machinery and equipment manufactured by the major mainframe factories of Xugong Group. The Pacific-Haitong Hengxin small and Micro Enterprises High quality Development Asset support Program declared by Taibao assets is mainly invested in leased assets in the fields of high-end equipment manufacturing, construction machinery, medical and health care, etc., with small and medium-sized enterprises as lessees. Can directly provide equipment support for small and medium-sized enterprises.

As for the investment preference of insurance asset management ABS products, in Gao Zelong's view, insurance funds pursue long-term and stable returns, so ABS products have attracted the attention of insurance funds because of their stable cash flow and relatively high rate of return. Insurance funds pay attention to risk control, and the structural design of ABS products makes the risk effectively dispersed and isolated, which meets the risk control needs of insurance funds. Insurance asset management companies have professional advantages: insurance asset management companies have professional advantages in asset allocation, risk management and product design, and can better grasp the investment opportunities and risk points of ABS products.

Looking at the market, insurance asset management companies to carry out ABS business has a great prospect. A number of industry insiders predict that there is more room for insurance asset management agencies to invest in ABS in the future, on the one hand, due to the growth of investment demand, on the other hand, it is inseparable from policy support and other factors. Gao Zelong said that with the transformation and upgrading of China's economy and the growing investment demand for stable returns for long-term funds such as insurance funds, ABS products have attracted attention for their stable cash flow and relatively high returns. The regulatory authorities have given active support and guidance for insurance asset management companies to carry out ABS business, which will help to promote the development and prosperity of the ABS market. In addition, with the continuous development and improvement of the capital market, the market recognition of ABS products has gradually increased, and the investment environment has been improved.

"as more insurance management companies obtain the qualification of ABS business pilot, more insurance asset management ABS products are expected to come out." Zhi Peiyuan said that this will further enrich the market product structure, improve market vitality, and at the same time promote the healthy and stable development of the asset securitization market. In addition, the participation of insurance asset management companies will also promote the standardization and standardization of the ABS market and enhance the transparency and efficiency of the market as a whole.

With the active participation of insurance asset management companies and other institutions in the ABS market, not only the type and quantity of ABS products will further increase, but also the market scale will be further expanded. In Gao Zelong's view, the acceleration of product innovation requires attention at the same time that risk management will be more important. With the expansion of ABS market scale and the increase of product types, risk management will become one of the key factors in market development. Insurance asset management companies and other institutions need to constantly improve their risk management capacity to ensure the stable and healthy development of the market.

Hu Yongxin, a reporter from Beijing Business Daily.