Recently, CITIC Securities Asset Management issued 17 announcements, and its 17 large collection products are expected to convene a meeting of holders to review matters such as changing the manager to Huaxia Fund and changing the registration to public funds.

It is reported that 2025 is the end of the public offering transformation of securities asset management and securities asset management, and the contract deadline for some large-scale product of CITIC Securities Asset Management is at the end of June this year. Since CITIC Securities Asset Management has not yet obtained a public offering license, this transformation will convert the Daquan product manager into a Huaxia Fund, a subsidiary of CITIC Securities.

At present, securities asset management is accelerating the public offering transformation of large-scale collectives.

The manager intends to be changed to Huaxia Fund

Taking the "Second Reminder Announcement of CITIC Securities Asset Management Co., Ltd. on Convening the Shareholders Meeting of the Collective Plan of Funds (FOF) Collective Asset Management Plans by Communication" issued on May 14 as an example, the announcement stated that according to the "Operational Guidelines for the Application of the

The manager of the collective plan is CITIC Securities Asset Management, which will expire on June 30, 2025. In view of the above situation, in order to fully protect the interests of collective plan shareholders, the administrator decided to convene a collective plan shareholders' meeting by communication through consultation to discuss matters such as changing the collective plan's manager and changing the registration as Huaxia Fortune Preferred One-year Holding Mixed Fund (FOF).

It is reported that according to the "Operational Guidelines", if a securities company and its asset management subsidiaries obtain public fund management qualifications or control fund management companies through initiation and establishment, equity transfer, etc., they should change the relevant large-scale products to be registered as public funds managed by the corresponding public fund manager after performing the necessary procedures stipulated in laws, regulations and contracts.

The "Operational Guidelines" encourage securities companies that have not obtained the qualification to manage public funds to complete the standardization of large collective asset management business in advance by replacing the manager of large collective product into the fund management company they control and shareholding and changing the registration as public funds.

CITIC Securities Asset Management stated that in order to implement the work requirements of the "Operational Guidelines", after careful research and agreement with relevant parties, it plans to change the Daquan product manager from CITIC Securities Asset Management to Huaxia Fund, a fund management company controlled by the company's parent company, CITIC Securities, and register the Daquan product as a public fund.

Regarding the reason for choosing Huaxia Fund as the undertaker, CITIC Securities said that CITIC Securities, the parent company of CITIC Securities Asset Management, is the controlling shareholder of Huaxia Fund, and holds 62.2% of the equity of Huaxia Fund. Huaxia Fund has the qualifications to be a fund manager and can become a fund manager after the product is changed to be registered as a public fund. Huaxia Fund has 27 years of rich investment management experience and is capable of doing a good job in investment operations, risk management, fund operations, etc., which is conducive to protecting the legitimate interests of the product share holders.

This move is not the first time that CITIC Securities Asset Management has. At the beginning of this year, CITIC Securities Asset Management decided to change the managers of some large collective products, and change the managers of its five large collective products that have been transformed into Huaxia Fund.

It is reported that the change of product type from "Shengongda Group" to "publicly raised securities investment fund" has no substantial impact on product investment operations. Shengongda Group refers to a collective asset management plan established and managed by securities companies with no restrictions on 200 people. Shengongda Group manages the public fund, and conducts investments that comply with the statutory investment scope and investment restrictions of public fund. The qualification conditions and behavior requirements of practitioners, product sales, share transactions and subscription and redemption, share registration, investment operations, valuation accounting, information disclosure, and risk reserve provision requirements are consistent with those of public fund. The operation and management of the Shengongda Group is basically the same as that of public funds. In this context, the use of changing managers to complete standardized management has little impact on the investment operation of the product itself, and can better achieve smooth transfer of products.

Public offering license becomes the key

The public offering transformation of the securities asset management large collection is a relatively common problem facing securities asset management.

The prerequisite for changing the registration of a large collection product into a public fund is that the administrator must have a public offering license. In fact, CITIC Securities Asset Management has been actively trying to apply for a public offering license. In CITIC Securities' 2024 annual report, CITIC Securities Asset Management's 2025 plan includes: Continuously promoting the application for public offering licenses. However, it has not been approved yet.

It is reported that there are three core paths for the transformation of large-scale public offerings. First, securities companies or asset management subsidiaries have public offering licenses and convert large-scale products into public offering products; second, for those who do not have public offering qualifications, it is encouraged to hand over the product manager to their shareholding and controlling public offerings. The actions of CITIC Securities Asset Management this time fall into this category; third, liquidate or convert products that do not meet the conditions into private offerings.

Previously, many securities companies have chosen to change their Daquan product managers to their public fund subsidiaries. In November 2024, Donghai Securities announced that it would hand over the four stakeholders and public funds to the stakeholders and public funds to the stakeholders and Donghai Fund for management. In mid-October last year, Guoyuan Securities handed over a large collection of bonds to the Changsheng Fund, a shareholder in the public fund. Earlier, Founder Securities also handed over a gang-public large collection to Founder Fubon Fund in 2023.

The latest information shows that four securities companies, including GF Securities Asset Management, Everbright Securities Asset Management, Anxin Securities Asset Management, and Guojin Securities Asset Management, are applying for public offering licenses.

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