ICBC Wealth Management Chairman Gu Jiangang Sina Asset Management News on August 17, the report press conference on "Research on the Future Market Structure and Business Model of the Asset Management Industry" was held in Beijing today. Gu Jiangang, Chairman of ICBC Financial Management, attended and delivered a keynote speech.
Gu Jiangang said that at present, banks still face certain challenges and uncertainties in establishing wealth management subsidiaries. Wealth management subsidiaries are private financial institutions issued financial licenses by the China Banking and Insurance Regulatory Commission, but the regulatory rules on net capital liquidity and some special product types and content still need to be clarified. For banks that have established public funds or other asset management institutions, how to position the relationship between wealth management subsidiaries and other asset management institutions and distinguish the business of each institution needs to be further clarified and discussed.
In addition, he pointed out that the compliance sales level needs to be improved urgently, the existing sales personnel capabilities need to be further improved, and the service level of outlets needs to be further enhanced. During the transformation period, due to thinking inertia, potential compliance risks may be caused in the links involved in sales. Bank information disclosure standards and information disclosure systems need to be further unified.
Gu Jiangang said that there is still a long way to go to reshape the financial management product system. Commercial banks must meet the all-round needs of investors with financial management products, and continue to build a full-coverage product system covering active, passive, equity, fixed income, commodity alternatives, major asset management, cash management, etc. Although the issuance of net value products and long-term products has increased significantly during more than one year's transition period, the proportion is still limited, or it will take time for the market to accept it.
The following is the transcript of the speech:
Host: Thank you Chairman Zhou for your wonderful speech and your strong support to the 50-person forum. We thank you again with applause!
OK, then we will enter the stage of representative reports from the research group members. First of all, we invite Gu Jiangang, chairman of the Bank Wealth Management and executive leader of the research team, to speak, Mr. Gu!
Gu Jiangang: Thank you, host!
Dear leaders and guests, good afternoon!
I will report one of the following: Research on the market structure and business development model of bank asset management business, and give a brief report from three aspects.
First, the bank wealth management industry is currently facing difficulties and challenges in transformation. In 2018, a series of regulatory policies represented by the "New Asset Management Regulations" were introduced, opening the curtain for the unified development of domestic asset management business. The asset management industry has officially entered a new era that focuses on rectifying the source, preventing risks, and transforming and developing. Due to the certain differences between the traditional operating model and the future development model, bank wealth management faces realistic challenges in the process of changing from the previous interest rate spread model to the management fee model.
specifically includes investors' familiarity with and understanding of bank wealth management products. Due to factors such as long-term rigid redemption and habitual thinking, the most concerned issues that most investors are still the product guaranteed capital and high yields, the lack of identification of contract terms, risk classification, net value changes, peer capabilities, and historical performance of wealth management products, and the huge workload of popularizing investment education.
Banks still face certain challenges and uncertainties in establishing wealth management subsidiaries. Wealth management subsidiaries are private financial institutions issued financial licenses by the China Banking and Insurance Regulatory Commission, but the regulatory rules on net capital liquidity and some special product types and content still need to be clarified. For banks that have established public funds or other asset management institutions, how to position the relationship between wealth management subsidiaries and other asset management institutions and distinguish the business of each institution needs to be further clarified and discussed. The compliance sales level of
needs to be improved urgently, the existing sales personnel capabilities need to be further improved, and the service level of outlets needs to be further enhanced. During the transformation period, due to thinking inertia, potential compliance risks may be caused in the links involved in sales. Bank information disclosure standards and information disclosure systems need to be further unified.
has a long way to go to reshape the financial management product system. Commercial banks must meet the all-round needs of investors with financial management products, and continue to build a full-coverage product system covering active, passive, equity, fixed income, commodity alternatives, major asset management, cash management, etc.Although the issuance of net value products and long-term products has increased significantly during more than one year's transition period, the proportion is still limited, or it will take time for the market to accept it.
interbank capabilities are relatively weak, and commercial banks have certain differences with other asset management institutions in terms of overall research and other aspects.
is in equity research, and at the same time, the asset management business of commercial banks has not yet established a perfect market-oriented salary and incentive mechanism for introducing and cultivating professional talents. Building a comprehensive risk management system has a wide range of work areas and a large project volume. Bank wealth management involves many departments. Commercial banks must not only establish supporting systems, processes and methods in various departments, but also do a good job in overall framework design. A comprehensive risk management system covering credit risks, market risks, operational risks, compliance risks, etc. needs to be improved. Bank wealth management innovations frequently and faces risk factors of multiple markets and multiple categories, so it is difficult to respond to business changes in a timely and effective manner. The disposal pressure of existing products and assets is high, and the speed of pressure reduction of old products is difficult to control. The pressure reduction of old products needs to match the growth of new products. Too fast or too slow pressure reduction will lead to large fluctuations in bank wealth management products, which may induce liquidity risks. On the other hand, non-standard assets are back on the balance sheet, non-standard conversion to standard, and renewal of the issuance of product loans, and other methods of disposing of existing non-standard assets are facing considerable adjustments.
Part 2, the prospects for the development of , bank wealth management business in my country.
Judging from past experience, the development of global bank-based asset management shows four major characteristics:
First, the bank-based asset management is large in size, high in proportion, and strong profitability.
Second, large institutions take all the winners, and small institutions win the best.
Third, equity assets account for a high proportion.
Fourth, the proportion of passive investment has grown rapidly.
According to the domestic situation, bank wealth management, as an important part of the financial market, is facing a rare development opportunity. From the perspective of promoting industrial upgrading, modern service industry and high-end manufacturing industry have become the new focus of supply-side structural reform and require new financing methods. From the perspective of preserving and increasing the value of residents' wealth, with the growth of the total amount of residents' wealth in my country, the focus of asset allocation shifts to financial assets and population aging, bank wealth management can help investors achieve preserving and increasing the value of wealth.
From the perspective of optimizing the financing structure of enterprises, the traditional financing method is mainly indirect financing for bank credit, and corporate financing is mainly concentrated on the liability side of the asset-liability target. In the process of supply-side structural reform, enterprises need to have a diversified financing structure from the equity side, asset side, and diversified financing structure. Bank wealth management will play an important role in optimizing the financing structure of enterprises.
From the perspective of improving the financial market structure and supporting innovation-driven development, bank wealth management has the advantages of diversification and strong adaptability that credit funds do not have. On the investment side, it can adapt to the different financing needs of enterprises at different stages of development, and on the liability side, it can match the different product needs of customers with different risk-return preferences. Its rich product system in the financial market also supports the development of innovative enterprises in the start-up and growth stages, and promotes the transformation of economic growth mode from extensive to intensive and high-quality.
Looking forward to the future, the development of bank wealth management shows 10 characteristics:
1. The status of bank-based asset management in the asset management industry has been further strengthened. At the end of the first quarter of this year, the balance of asset management products of my country's financial institutions was nearly 80 trillion yuan, of which the balance of bank wealth management products was nearly 22 trillion yuan. Looking vertically, from 2012 to 2017, the proportion of bank wealth management scale was basically stable at about 25%, and it has always been in the leading position in the asset management industry. my country's bank-based asset management is the main fund source institution in the asset management industry, and is at the upstream of the asset management system. Compared with other asset management institutions such as securities companies, funds, insurance, and trusts, it has obvious advantages in customer channels and brands. With the transformation of my country's economy and the further development of asset management business, bank-affiliated asset management will make full use of the advantages of customers and channels and continue to maintain the industry's dominant position.
2. Unified supervision. Under the unified regulatory situation, regulatory arbitrage has been gradually cancelled. Previous regulatory differences have brought about business differences, or the advantages of the business will no longer exist. Each sub-industry of asset management should carry out differentiated strategic positioning, highlight each comparative advantage, and build an efficient financial ecosystem.Bank wealth management needs to re-establish its own strategic positioning, grasp its core advantages, and carry out competition and business cooperation among industry through leveraging its comparative advantages.
3. Customer organization. The overall proportion of institutional customers in the overseas capital market is relatively high, among which pension customers account for a large proportion. Judging from international experience, the proportion of institutional customers in asset management business accounts for about 60%, and currently only 40%. Compared with mature markets, there is still a lot of room for improvement. In 2019, with the further development and maturity of China's financial market, and the institutionalization of corporate pensions and pension financial companies, it will become an important trend that wealth management subsidiaries need to grasp.
4. Marketing networking. Bank wealth management has become an important business segment within the banking group to enhance customer stickiness and increase brand awareness. On the basis of continuously optimizing the advantages of traditional bank outlets and counters, bank wealth management strengthens online and offline channel interactions, and uses channels and technical means such as Internet mobile terminals, big data and cloud computing to conduct customer marketing in the interaction and supplement between traditional and emerging media. Therefore, wealth management subsidiaries need to continue to improve the construction of technology platforms and optimize APP functions, etc., to gradually strengthen the traffic and competitiveness of direct sales channels.
5. Product net value. As a requirement of the new asset management regulations, the net value of bank wealth management products is also an important aspect of future product system transformation. Bank wealth management needs to gradually build accounting and operation systems such as asset valuation, information disclosure, and risk monitoring, and also consolidate the management mechanism of product net value.
must also consolidate the management foundation of product net value, build a complete product net value system, and promote a complete net value product system in steps for different customer groups.
6. Investment diversification; in the future, customers' financial management needs will become increasingly diversified, which requires wealth management subsidiaries to build a more complete investment system. At the same time, the "New Asset Management Regulations" also opens a channel for diversified asset allocation of wealth management funds. The ever-mature and perfect multi-level capital market will also provide a broader market space for commercial banks' financial management funds investment. Public offerings of wealth management subsidiaries can also directly participate in stock transactions of listed companies.
7. Division of labor is specialized; after the implementation of the "New Asset Management Regulations", there is a significant difference between the bank wealth management business carried out in the form of a company's legal entity and the head office's capital department, which puts forward higher requirements for the professionalization capabilities of various business positions of bank wealth management subsidiaries. Learning from the advanced experience of international leading asset management institutions, wealth management subsidiaries need to further strengthen the degree of management refinement, optimize the product operation process, and improve the professional division of labor capabilities.
8. Internationalized business; from overseas experience, many successful asset management institutions around the world usually have a relatively high proportion of revenue in the overseas market. At present, domestic asset management institutions have relatively low share in the international market, and there is still a lot of room for development compared with other mature asset management institutions in the world. Against the background of the gradual opening of China's financial market and the internationalization of the RMB, the demand for global allocation of domestic funds and comprehensive allocation of overseas funds has gradually increased, and overseas business has gradually become a blue ocean for the growth of bank wealth management profits.
9. Financial technology; bank wealth management can play the application of big data in customer stratification and demand analysis, and use data to accurately reflect customer needs of different types, different life cycles, and different regions, and achieve accurate analysis and continuous marketing. At the same time, bank wealth management should use machine learning, big data analysis, behavioral typing and other technologies to vigorously develop intelligent investment advisory business and continuously improve risk identification capabilities.
10. Institutional public privatization. As more and more bank wealth management subsidiaries are approved for establishment, it will gradually change the original market structure of China's asset management market, and the entire asset management industry will present a new trend of competition and cooperation development. The regulatory authorities provide all types of financial institutions with equal market access qualifications for asset management business, reflecting the principle of fair competition among all asset management institutions. The third part of
is the transformation path of my country's bank wealth management business. The transformation of the banking asset management industry is a long-term systematic project, which requires market investors, managers and regulators to cooperate with each other on the premise of complying with relevant laws and regulations, rather than one person’s achievements.
In terms of strategic positioning, bank wealth management should promote transformation in accordance with the requirements of direct financing, and bank wealth management should operate and manage in the form of an independent legal person to effectively achieve risk isolation and reshape the risk preferences of bank wealth management business. The transformation and development of bank wealth management subsidiaries must comply with the basic principles of the capital market, that is, buyers are responsible for themselves, sellers are the credit basis of the capital market, and rigid redemption must be broken. When the transformation and development of bank wealth management subsidiaries, we must clarify the boundaries of professional asset management, make large-scale equity investments based on the requirements of the capital market, and optimize information disclosure, risk management and screening mechanisms for external trustees.
In terms of transformation and development, commercial banks should accelerate the adjustment of their internal business models. At present, the bank wealth management industry as a whole is in a critical period of transformation and transformation. Commercial bank wealth management subsidiaries need to build a core business system that adapts to industry trends, conforms to regulatory directions, and makes full use of their own endowments, including a qualified investor system, a stable product system, an investment and research system with major asset allocation as the core, a comprehensive risk management system, an effective operating valuation system, and an efficient and stable organizational structure system.
Through the construction of these six major systems, it strives to improve the investment research, risk control and other capabilities of wealth management subsidiaries. While comprehensively promoting business transformation, upgrading and development, we will improve our comprehensive financial service capabilities and continuously improve our ability to serve the real economy.
In terms of supporting mechanisms, it is necessary to speed up the improvement of the arrangements of relevant bank wealth management systems. At the legal system level, it is recommended to further clarify the legal entity status of bank wealth management products. It is recommended to stipulate that investors are allowed to conduct transaction flow of bank wealth management products on trading platforms recognized by the State Council or the China Banking and Insurance Regulatory Commission.
Strengthen investor education, it is recommended to build a multi-level investor education system, it is recommended to strengthen education and publicity of products that break the rigid guarantee net value, it is recommended to clarify and standardize the financial asset material styles and material main institutions required for qualified investors to identify, and streamline the division of responsibilities for qualified investors. In terms of
practitioner management, it is recommended to stipulate strict access standards for practitioners in the asset management industry, integrate the qualification requirements of practitioners in each asset management industry, and establish a unified asset management industry qualification certification system. In terms of medium- and long-term investor cultivation, it is recommended to accelerate the construction of the pension system, provide long-term funds for the financial market, and coordinate the life department to give bank wealth management investment management responsibilities in the fields of social security funds, pension funds, basic pension funds, corporate annuities, occupational annuities, occupational annuities, and other pensions. Establish the investment scope of pension bank wealth management products issued in basic pension insurance, corporate annuities, occupational annuities, national social security funds, and individual pensions based on corresponding rules, and compare the investment scope of private equity financial products.
recommends optimizing the transition period arrangement to ensure the smooth transformation of the asset management industry. The transformation and development of the asset management industry plays a role in moving the whole body to a certain extent. The transition of the industry should balance the relationship between transformation and development and risk prevention. It is recommended to optimize the transition period arrangements and deal with asset risks in various ways. It is recommended to enrich the types of basic financial products to provide a foundation for financial institutions to explore diversified new products.
2019 is the first year of the development of bank wealth management subsidiaries, and it is also the beginning of the bank wealth management subsidiaries entering a new era. In the period of transformation and development of bank wealth management, Industrial and Commercial Bank of China and ICBC Wealth Management subsidiaries will continue to play the role of benchmarking state-owned banks and industry leaders, inherit the business culture of steady development of parent banks, and build China's world-class bank asset management company as their vision positioning, continuously improve value creativity, market competitiveness, and financial innovation, and contribute their due strength to the further development and expansion of my country's asset management industry and enhance international competitive strength.
Thank you everyone!
Host: Thank you Mr. Gu for your wonderful speech. Because this topic report ICBC is the leading unit among the five units, so it has made great contributions to this. I would like to express my gratitude to Mr. Gu again.
Sina Statement: All conference transcripts are compiled on-site shorthand and have not been reviewed by the speaker. Sina.com publishes this article for the purpose of conveying more information, and does not mean that it agrees with its views or confirms its description.
Source: Sina Finance
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