This year is the last year of the transition period of the new regulations on asset management. How to find the company’s positioning, outline the development direction, and stand out in the fierce industry competition in the future has become the focus of the future transformation and development of the asset management industry of securities companies. In this regard, the Chinese reporter of the securities company conducted an exclusive interview with Liu man, managing director of Citic Securities Company Limited(600030) asset management business.
Liu man believes that there is a broad space for asset management business. From the perspective of market demand, under the background of the transfer of residents’ asset allocation to the capital market, asset management business will usher in development opportunities in the three fields of pension investment, institutional services and wealth management in the future. At the same time, asset management of securities companies will give full play to their unique advantages in competition with other types of asset management companies.
Liu man said that in the face of the industry transformation and development environment in which new and old business models alternate, Citic Securities Company Limited(600030) asset management business adheres to the original intention and mission of “seeking happiness for the people, serving the real economy and preventing financial risks”, follows a multi pronged strategy, improves the business layout, and provides investment management services to investors with various risk return characteristics such as pension, institutions and retail, Give full play to the advantages of platform resources, continue to strengthen investment and research construction, product innovation and customer company, actively plan and prepare the establishment application of asset management company, and apply for public offering license when conditions permit.
By the end of June this year, Citic Securities Company Limited(600030) asset management scale totaled RMB 1390962 million; The scale of collective asset management plan, single asset management plan and special asset management plan is RMB 361.415 billion, RMB 1029.442 billion and RMB 105 million respectively. Among them, the active management scale is RMB 1166368 million, and the market share of the company’s private asset management business (excluding pension business, public offering large collection products and asset securitization products) under the new asset management regulations is about 13.84%, ranking first in the industry.
optimistic about development opportunities in three fields
Chinese reporter of securities firm: can you talk about the development opportunities of asset management business?
Liu man: since the introduction of the new asset management regulations in 2018, the reform of the asset management industry has been gradually deepened. After three years of transformation and adjustment, the scale of the industry has returned to a steady upward trend. By the end of June this year, the total scale of China’s asset management industry had reached 127 trillion yuan, exceeding the highest level in history. All asset management institutions have fully turned to the long-term development track of net worth management and portfolio investment, reflecting the overall good development trend of the asset management industry.
from the perspective of market demand, under the background of the transfer of residents’ asset allocation to the capital market, asset management business will usher in development opportunities in the three fields of pension investment, institutional services and wealth management in the future.
First, pension investment. on May 11, 2021, the results of the seventh national census showed that China’s population aged 60 and over accounted for more than 18%, and the degree of population aging was further deepened. The demand for elderly care and financial management of residents characterized by long-term investment and steady value-added will become increasingly urgent in the future. In terms of the proportion of pension assets in GDP and the scale distribution structure of the three pillars of pension, there is still a large gap between China’s pension system and the United States and other developed countries. During the “14th five year plan” period, the national level also attaches great importance to and will continue to promote the development of elderly care services. It is expected that the second and third pillars of China’s elderly care will have great development space, which will be a major opportunity for the asset management industry.
Second, institutional services. in the process of net worth management transformation, bank financial management needs to constantly enrich and refine the strategic product pedigree with the help of external professional investment management experience and ability. Enterprise customers also have diversified financial needs in investment, financing, equity management and so on. Therefore, there are business opportunities for entrusted investment management of institutional customers and various additional services derived therefrom, such as research, risk control and performance evaluation.
Third, wealth management. under the background of the rapid growth of residents’ disposable income, residents’ enthusiasm for wealth management is unprecedented. China’s wealth management market, whether high net worth people or individual ordinary customers, presents a strong trend on the demand side of financial management. Through in-depth user portraits, asset management institutions understand customers’ preferences and needs, build targeted portfolios, and provide products that meet the differentiated and diversified wealth management needs of different investors, which is one of the potential development directions of the asset management industry in the future.
Chinese reporter of securities firm: can you briefly introduce your asset management business?
Liu man: facing the industry transformation and development environment in which the business model alternates between the new and the old, Citic Securities Company Limited(600030) asset management business adheres to the original intention and mission of “seeking happiness for the people, serving the real economy and preventing financial risks”, follows a multi pronged strategy, improves the business layout, and provides investment management services to investors with different risk and return characteristics such as pension, institutions and retail, We will continue to strengthen the construction of a long-term mechanism for active management, cultivate the ability to innovate asset allocation, risk pricing and products and services, provide comprehensive solutions and services by comprehensively using various financial instruments and science and technology systems according to customer needs, and gradually complete the transformation and upgrading of net worth.
In terms of customer development, on the one hand, vigorously develop social security, basic pension, enterprise annuity, occupational pension and other pension businesses, actively promote the bank’s active management business transformation, make new progress in cooperation with financial subsidiaries and private banks, enrich the non bank customer service model, and provide liquidity management, stock investment, employee stock ownership Comprehensive financial services such as strategic placement; On the other hand, focusing on the public offering transformation of large collection products, comprehensively improve the quality and efficiency of retail personal services, constantly improve the construction of retail wealth business system, actively contribute to the development of inclusive financial business, and rapidly expand high net worth personal business with fof products as the carrier.
In the process of product design and investment operation, pay attention to the national macro strategic deployment and reform policies, practice the sustainable value investment under the ESG concept, strictly prohibit investment in industries restricted by laws, regulations and regulatory policies, focus on supporting industries and directions guided by national industrial policies, and pay attention to the registration system of science and innovation board The investment opportunities brought by the establishment of the Beijing stock exchange and other multi-level capital market quality and efficiency reform initiatives closely serve the national economy and the people’s livelihood and inject vitality into the transformation of the real economy and the development of the capital market.
vigorously develop pension investment business
Reporter from China: what role can asset management of securities companies play in the development of pension system?
Liu man: in terms of pension investment, with the continuous improvement of active management ability, the asset management business of securities companies can rely on their own investment and research ability and experience in fixed income, equity and other fields. According to the investment demand characteristics of pension funds, with the help of social security and basic pension, enterprise annuity and occupational annuity, pension and insurance outsourcing license, Provide a series of professional product systems and investment management services to help pension funds strengthen the effectiveness of asset allocation and share more dividends in the capital market. on the one hand, asset management institutions of securities companies have advantages in asset mining, risk identification and pricing, secondary trading and other aspects of innovative investment varieties such as asset-backed securities, REITs and science and innovation board, which can help pension funds allocate more diversified financial asset instruments, expand the capacity of investment strategies and enrich the source of portfolio income. On the other hand, based on the systematic and scientific asset allocation framework and diversified investment strategy reserve, the asset management institutions of securities companies can continuously improve and optimize the risk return characteristics of pension portfolio, and help to steadily improve the long-term return level on the premise that the overall risk is controllable.
Chinese reporter of securities firm: Citic Securities Company Limited(600030) what is the layout of pension business?
Liu man: Citic Securities Company Limited(600030) is the only securities firm asset management institution in China with the qualification of insurance fund trustee, enterprise annuity, domestic entrustment of national social security fund and investment manager of local basic endowment insurance fund. Citic Securities Company Limited(600030) follow the principle of prudence and risk diversification, fully consider the safety, profitability and liquidity of pension funds, practice the concept of long-term value investment under strict investment restrictions, implement professional management, and realize the long-term stable appreciation of entrusted assets.
continue to lead institutional service business
Chinese reporter from securities companies: competition and cooperation between asset management of securities companies and asset management institutions such as bank wealth management and public funds?
Liu man: the regulatory rules of each sub industry are gradually unified, which provides a good legal environment for the long-term and healthy development of the asset management industry. When entering the stage of market-oriented competition, each asset management institution also shows its own characteristics in terms of capital asset source, customer risk preference, investment ability endowment, etc. Among them, the bank has outstanding advantages in the capital side, has a deep foundation of retail customers, has a large amount of credit data and rich risk management experience, and has a relatively mature system in terms of creditor’s rights asset allocation strategy. At present, cash management and fixed income financial products have become strong competitors for lower risk asset management products in the market. After years of development, public funds have made certain first mover advantages in the construction of investment and research system and equity investment. They also enjoy tax preference and listing and trading convenience. They are an important supplier of low starting point investment tools in the market. As an asset management institution under the investment banking platform, the asset management institution of securities companies has advantages in the development of strategies such as stocks, bonds and alternatives, and can effectively give play to the advantages of business linkage from the perspective of asset allocation and risk pricing ability, cooperate with the resources of each business line of the company, open up the internal capital, asset and strategy cycle of the company, and provide diversified investment targets and multiple scenarios One stop investment management service.
it can be seen that funds are concentrated in large and medium-sized banks, while asset creation and strategy R & D are the strengths of non bank asset management institutions such as public offering and securities companies. The differences in asset management development stages and advantages and expertise between these two types of institutions determine that they can form a natural complementary relationship. In this pattern of misplaced competition, asset management institutions can realize the optimal allocation of capital, asset and strategy through the complementarity of their respective resource endowments.
For example, there are a lot of cooperation opportunities between financial companies and asset management of securities companies. From the capital side, bank outlets have more advantages in the retail system, with a high proportion of individual investors and low risk appetite. The asset management of securities companies accumulates more institutional investors and has a high risk preference. According to the characteristics of different groups of customers, they can build a value supply chain and realize two-way customer diversion. From the asset side, asset management of securities companies can rely on platform resources to broaden the categories of financial instruments and continuously track and tap high-quality investment targets such as ABS, fixed growth and derivatives. From the strategic point of view, asset management of securities companies is better at grasping the trading opportunities of bonds, and has more mature investment strategies for stock trading and derivative hedging, which can enhance the income of traditional fixed income bank financial products. At the same time, asset management of securities companies can also provide design, R & D and implementation services of various subdivision innovation strategies. In addition, asset management of securities companies can cooperate with the research results of the company’s research business to realize the organic combination of seller’s research and buyer’s research, so as to carry out in-depth investment and research cooperation with banks in a variety of ways.
Chinese reporter of securities firm: Citic Securities Company Limited(600030) how can the asset management business continue to maintain its leading position in the field of institutional services?
Liu man: in terms of endogenous capacity, Citic Securities Company Limited(600030) asset management business continues to improve investment management level, improve customer service system, strengthen risk management capacity and optimize information system construction, so as to enhance the core competitiveness of institutional services.
in terms of investment management, strive to promote the professional construction and fine management of investment research team, strengthen asset allocation, investment research integration and talent echelon construction, continuously expand the coverage while consolidating the foundation of fixed income and equity research, accelerate the layout in overseas, quantitative, fof and alternative assets, and continuously subdivide and enrich strategic products, Improve the stability of strategic performance. It is worth mentioning that under the strategic layout of globalization, Citic Securities Company Limited(600030) asset management has achieved in-depth integration with CITIC Lyon asset management, and can achieve two-way cross-border investment objectives for customers through QDII, QFII, rqfii and other licenses, covering different assets and markets such as Hong Kong stocks, US dollar bonds and China concept stocks.
in terms of customer service, Citic Securities Company Limited(600030) asset management business has an institutional customer service team of more than 40 people, which is in a leading position in the industry in terms of number and professionalism. Based on the rich service experience accumulated in carrying out institutional business for many years, we have an in-depth and unique understanding of institutional business model, and have a relatively mature and perfect outsourcing service product line, which can customize investment management solutions for institutional customers, and provide a large number of value-added services in asset allocation and credit evaluation.
in terms of risk management, Citic Securities Company Limited(600030) always believes that effective risk management and internal control are crucial to the successful operation of the company. Asset management business adheres to this risk management concept, continuously improves the monitoring, evaluation and reporting of business risks, strengthens the training of employees through various ways, and deeply embeds the awareness of compliance and risk control in the business development process of each front-line employee, so as to ensure the legal and compliant operation of various businesses and effectively protect the interests of investors.
in terms of information system, in order to better provide high-quality comprehensive services to customers, Citic Securities Company Limited(600030) asset management business has gradually promoted digitization from the sales end, investment end and operation end, continuously optimized the information system with the goal of comprehensively improving the operation efficiency of all links of asset management, and developed a research, transaction and data platform with independent intellectual property rights, It realizes the whole process systematic management of investment research, investment decision-making, transaction execution, portfolio management and performance attribution, and can realize multi-dimensional customized information disclosure according to customer needs.
actively expand wealth management business and promote public offering transformation
Chinese reporter of securities firm: in the era of wealth management, Citic Securities Company Limited(600030) how to break the situation of asset management business?
Liu man: facing the market environment of low interest rate and the regulatory environment of asset management products, how to apply the changes of market style through scientific asset allocation and overcome irrational investment behaviors such as pro cyclical and frequent transactions is a common pain point for individual investors. Therefore, Citic Securities Company Limited(600030) asset management business focuses on investment demand scenarios such as fixed income substitution of individual customers, diversified value-added, Pension Reserves and children’s education, provides portfolio customization services with the help of fof and other product models, and relies on the investment research decision-making system combining quantitative and qualitative to realize diversified asset investment, diversified style portfolio and diversified investment manager allocation, Gain customer trust with comprehensive professional services.
Chinese reporter of securities firm: I heard that the company plans to make public offering transformation?
Liu man: in recent years, under the guidance of the requirements of the new asset management regulations for the unified supervision of asset management products, on the one hand, the asset management institutions of securities companies have vigorously carried out the public offering transformation of large collection products; On the other hand, more and more securities companies and asset management institutions have begun to prepare applications or have been approved for public offering licenses.
Citic Securities Company Limited(600030) asset management business has been actively responding to the guidance requirements of regulatory policies, orderly promoting the rectification and standardization of large collection products, and the public participation and transformation progress of large collection products ranks in the forefront of the industry. The company has 16 contract change applications for large aggregate products approved by the CSRC and operated normally with reference to public funds. It is an important way to serve low starting point retail customers and continuously optimize customer structure. At present, the total scale is more than 45 billion yuan.
In the future, in order to further explore the business development mode under the new regulations of asset management and meet the needs of the company’s business development, Citic Securities Company Limited(600030) asset management business will gradually promote the transformation of public offering, actively plan and prepare the application for the establishment of asset management company, and apply for public offering license when conditions permit in the future.
Chinese reporter of securities firm: where is the key point of public offering transformation?
Liu man: after the transformation of asset management public offering, securities companies will directly compete with hundreds of public fund managers on the same stage. Strengthening the construction of investment research and customer service system to meet the needs of public offering development is the core starting point to improve market competitiveness.
For a long time, the investment and research ability of public funds is particularly critical, which directly determines the return on investment of customers. Large public funds have formed their own investment and research systems in the development competition for many years, established a more distinctive investment style in the market, and have obvious advantages in the field of equity investment. The asset management of securities companies as a whole has a relatively complete investment and research system, but there is a certain gap in the number of investment and research teams compared with the head public funds. It is necessary to further optimize the investment and research resource structure, strengthen the construction of talent echelon, and effectively transform the investment and research ability into customer income.
The regulatory standards of public funds are more stringent than those of private funds, so a relatively complete and characteristic customer service system has been formed in terms of information disclosure, publicity methods and operation contents. On the one hand, it is conducive to establish the market brand influence of public funds, and on the other hand, it also improves the ability and contact of customer service. In contrast, there is still room for optimization in public offering product marketing and customer service.
Chinese reporter from securities companies: what are the advantages of the transformation of asset management public offering of securities companies?
Liu man: asset management institutions of securities companies can effectively build trust and trust in the hearts of customers with the help of the brand advantages of the company’s platform. Taking Citic Securities Company Limited(600030) as an example, after years of development, the asset management business has rich experience in providing customized products and services for institutional and retail customers, and has established long-term good cooperative relations with internal wealth Commission channels and external banking channels, which has accumulated a good customer resource base for the public offering transformation of asset management business. In the future, it will further expand the channel layout Continuously improve channel reputation and service satisfaction. In addition, the synergy between asset management and investment banking, research, derivatives and other lines also reserves diversified strategies and talents for the development of public offering business in the future.
give full play to the advantages of securities companies’ asset management platform
Chinese reporter of securities firm: can you talk about the positioning of asset management business in the company and the coordination with other business sectors?
Liu man: asset management business, as a functional segment positioned at the buyer, is a product supplier of wealth management and institutional wealth management. In essence, asset management mainly constructs multi-level portfolio and financial products matching the investment needs of institutions and individual customers through professional value evaluation and risk management, and plays a connecting role between financing, investment and wealth management. Combined with the development experience at home and abroad, the asset management business can provide customers with all-weather continuous management services and effectively deal with the fluctuations of the market environment through a comprehensive and diversified business layout, so as to provide a stable revenue contribution for securities companies.
in the context of large wealth management, the company’s asset management business cooperates closely with investment banking, wealth management and other departments. on the one hand, asset management business can track all kinds of assets developed and created by investment banks on the premise of compliance, closely follow the reform direction and development trend of capital market, and provide high-quality investment targets such as creditor’s rights and equity for asset management products. At the same time, asset management business can fully link with investment banks, strengthen investment and financing integration services, build an Entrepreneur Club for investment bank customers, provide customized asset management solutions for investment bank enterprise customers through strategic product design and investment research service output, and effectively give full play to the comprehensive financial service ability of securities companies. On the other hand, asset management business and wealth management line cooperate and collaborate in many aspects, such as retail product consignment, key customer collaborative development and customized services. On the basis of customer-centered, they jointly promote the transformation and upgrading of securities companies’ wealth management business and improve customer experience. Specifically, asset management business provides low starting point, instrumental and intelligent inclusive investment services for ordinary customers with the help of large collection products operated by the company. Provide diversified investment strategies and products at home and abroad for high net worth customers through the layout of small collection products covering fixed income, equity, quantification, cross-border and other fields. Using the single fof model, provide one-stop wealth management, financial investment and related services for ultra-high net worth customers, and customize the configuration scheme according to the characteristics of customers’ risk preference and liquidity needs, so as to meet the personalized investment needs.
(brokerage China)
