(Economic Observation) New Opportunities for China's Wealth Management: "ESG Investment" is on the cusp of the times
China News Service, Guangzhou, December 6 (Sun Qiuxia) At present, China has become the world's second largest wealth management market and the second largest onshore private banking market.
What are the new trends in the booming Chinese wealth management market in the context of "carbon peak and carbon neutrality"?
At the "IFF Summit-Wealth Management Summit" of the 18th Global Annual Meeting of the International Finance Forum held a few days ago, the guests at the meeting were optimistic about the development potential of China's wealth management market and believed that "ESG investment" was already on the cusp of the times.
The scene of the 18th Global Annual Meeting of the International Financial Forum "IFF Summit-Wealth Management Summit".
Photo courtesy of the organizer
"ESG" is an investment philosophy and corporate evaluation standard that focuses on corporate environment, society, and governance performance rather than financial performance.
In 2004, the United Nations Environment Program put forward ESG principles for the first time, and believed that this is an important factor that affects the long-term interests of shareholders.
Soonyoung Chang, founder and chairman of Midas International Asset Management, pointed out that the current global wealth management is facing huge uncertainty. The short-term risks are a series of chain reactions brought about by the global epidemic, such as inflation and interest rate changes. The long-term challenge is climate change and ESG issues.
"In addition to financial returns, more and more customers in the global investment industry also require their investments to contribute to a better environment and a better society." Soonyoung Chang said.
Not only globally, but Chinese ESG investment is also in the ascendant.
Tang Xiaodong, head of BlackRock China, the world’s largest wealth asset management company, believes that as sustainable investment in China has received more and more attention from the government and the regulatory level, how to effectively incorporate its system into its own investment solutions and provide solutions that meet different requirements. Sustainable investment strategies demanded by customers will be a development direction that Chinese investment wealth management institutions need to consider in the future.
Li Tong, CEO and Executive President of Bank of China International Holdings Limited, also pointed out that the future development of wealth management business requires ESG to be incorporated into the investment framework. By exploring the long-term stability and sustainability of investment yields, it can explore new opportunities brought about by economic transformation. Growth point, to achieve a balance between performance returns and serving the real economy.
Yu Lan, deputy editor-in-chief of China News Agency and president of China News Network, said that wealth management is an important force in financial services for the real economy and the transformation of the economy and society.
Whether it is to truly alleviate the investment and financing bottlenecks in the real economy, or to carry the banner of ESG's financial responsibility, this is not only financial creation of wealth, but also financial good.
And doing good is better than destroying, and even financial returns will be better.
It is worth noting that, at present, wealth management is no longer just a game for the rich. With the continuous growth of wealth universality, wealth management has flown into the homes of ordinary people.
Yu Lan believes that when wealth management changes from "icing on the cake" to "essential", the participants in wealth management become more diversified, the demands are more diverse, and the market is in a state of full competition, which will inevitably require wealth management companies to change due to the times and the situation. Improve the ability to create value for customers and the ability to assume social responsibility.
When the big environment changes, everyone in it can feel the direction of the wind.
Zhang Xiaoling, general manager of Huaan Fund, pointed out that although "carbon peak and carbon neutrality" is a challenge, it is also a huge investment opportunity. In this process, energy revolution, informatization, electrification, etc. bring about the transformation of economic structure. , There are also changes in people's lifestyles.
According to Zhang Shunrong, senior director of the Asia-Pacific region of the International Capital Market Association, the corresponding return of green bonds is higher than that of traditional ordinary bonds, which has been proven by the market.
If a coal company is fined for pollution, or if the corresponding financing is not available, the profitability of the company will be affected, and investors will also be impaired.
However, according to Wang Yanjie, general manager of SDIC UBS Fund Management Co., Ltd., although ESG is already a consensus in the market, both investors and financial institutions need to have a deeper understanding of ESG.
"Policy direction is not equal to investment method, it can be combined with each other to achieve financial goals. In investment management, the exchange has ESG disclosure requirements for all listed companies, but many companies only complete the minimum standards. It needs to be clear to everyone. Really realize that this is not a question of values, but such an investment method can bring returns." Wang Yanjie said.
Tang Yongjun, a professor of finance at the University of Hong Kong, has also seen some problems in ESG investment.
He pointed out that ESG investment naturally belongs to the emerging "frontier investment field." After the outbreak of the new crown pneumonia epidemic, ESG has achieved explosive growth, but many people are just chasing profits. You should still understand the essence carefully, otherwise there is a risk of stranding assets.
How to better promote ESG investment?
Tang Xiaodong believes that this requires not only the support of data, technology and analysis tools, but also the implementation of the ESG evaluation system from the top to the bottom within the organization, and the organic integration of the investment process of its various strategies and risk management.
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