2024-02-29 09:53:38
Chinese people love to buy ETFs so much that the scale exceeded 4 trillion yuan at the end of January and surged to 1.5 trillion yuan in just one year, which once once more sounded the alarm for the Financial Supervisory Committee. Today (29th), Shang Guangqi, Chief Secretary of the Securities and Futures Bureau, announced that in order to protect the rights and interests of investors, new supervision measures for three major aspects and six major “refinements” have been formulated with reference to international standards. Issuers and brokers must provide sufficient liquidity and not create systemic risks, otherwise they may be fined. At the same time, in the future, ETFs with a discount or premium of more than 3% will be included in the supervision of the stock exchange using big data.
Chinese people have invested 4 trillion yuan in ETFs, and the Financial Supervisory Commission has sounded the alarm for the second time to draft six new regulatory measures.File photo: Central News Agency
The scale of Chinese ETFs is getting bigger and bigger, and the Financial Supervisory Commission is taking frequent actions. In early November last year, the Taiwan stock ETF exceeded 3 trillion yuan. For the first time, the Financial Supervisory Commission sounded the alarm and proactively issued press releases to ask attention to two major risks, product and market. After that, we paid close attention to the leveling system of high-dividend ETFs and strengthened the disclosure. In January this year, the financial inspection ETF was suddenly uploaded. Zhang Zihao, the inspection director, pointed out that due to the popularity of ETFs in recent years, the general financial inspection has included ETFs (including futures ETFs) as gold in 2024. We are focusing on inspections and are planning “project financial inspections”. Today, the five major supervision measures were released once more, triggering the market’s association with the motives of the competent authorities.
The Financial Supervisory Commission stated that as of the end of January 2013, the size of China’s ETF market had reached 4.179 billion yuan, accounting for 57.61% of the overall domestic fund size of 6.9746 billion yuan, and compared with the 2.4728 billion yuan ETF market size at the end of January 2012. , an increase of 1.5451 billion yuan, a growth rate of 62.48%. The scale has grown rapidly and has become one of the main financial products for Chinese investors.
However, in order to protect the rights and interests of investors, the Financial Supervisory Commission said that with reference to the sound practices issued by international securities regulatory agencies in May last year, it will “refined” strengthen relevant supervisory measures from the perspective of products, disclosure and liquidity, and three major aspects to reduce investment human risk.
The first is from the “product structure” aspect.
1. Enhanced management measures for real-time estimated net value of ETFs:
When an ETF issuer uses an external service provider to calculate real-time net worth, it should include matters such as due diligence and continuous supervision in its internal control system, and display relevant warnings on the official website regarding the specific risks of outsourcing calculations to remind investors.
2. Strengthened management measures for participating securities firms and liquidity providers:
The relevant contracts signed between the ETF issuer and the participating securities firms and liquidity providers of interested companies shall be subject to serious resolution by the board of directors, and when the ETF has only one liquidity provider, it cannot be an interested company.
2. “Information Disclosure” Orientation:
1. Strengthen customization and information disclosure of SmartBeta Index ETF:
Explain the index compilation rules in a clear and easy-to-understand manner on the official website of the investment trust company, and strengthen the disclosure of the differences between customized indexes and traditional indexes and related risks in the public prospectus, as well as the risks that the SmartBeta index may hold a considerable proportion of companies with smaller market capitalization, and strengthen Customized index review and ETF product review.
2. Strengthen the disclosure of information on ETF dividend distribution from income leveling funds:
Strengthen the disclosure of the proportion of income components distributed by dividend-distributing ETFs (such as dividends, realized capital gains, income leveling funds, etc.), and ETFs that use income leveling funds to distribute dividends should set income distribution in the internal control system in principle.
3. “Liquidity provision” is aimed at:
1. Strengthened management measures for ETF liquidity providers:
For situations where ETFs fail to comply with the specifications for selecting liquidity providers, new penalties will be added, and reasonable resolution time will be given to the industry and the market so that the ETF market can resume its original functions.
2. Strengthen relevant measures to prevent and control excessive discounts and premiums:
The stock exchange and the OTC Trading Center are jointly planning the “ETF Market Overview” big data dashboard, which will compile ETF net value, asset size, discount and premium and other information as a supervision reference to improve risk management efficiency.
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Yahoo Finance special correspondent Ye Yiru: With more than 20 years of experience in mainstream financial media, from the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small business groups, and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care regarding you.
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