Zhongxin Finance, September 22, title: Li Wen, Chairman of China Universal Fund: China's public fund industry has entered a new stage of high-quality development
Author Gao Zhimiao Fan Zhonghua
"Actively cultivate professional asset management institutions", "Comprehensively strengthen professional capacity building", "Strive to build a good development ecology in the industry", "Continuously improve the efficiency of regulatory transformation"... In April 2022, the China Securities Regulatory Commission issued "On Accelerating the Promotion of High-quality Public Fund Industry" Development Opinions" (hereinafter referred to as "Opinions") provides the latest "action plan" for accelerating the construction of a new development pattern of the fund industry and achieving high-quality development.
Data from the Asset Management Association of China shows that after the introduction of the "New Regulations on Asset Management" ("Guiding Opinions on Regulating the Asset Management Business of Financial Institutions"), as the backbone of the asset management industry, the size of the public fund industry has grown from 100,000 in early 2018. RMB 100 million (RMB, the same below) will increase to RMB 27 trillion by mid-2022.
At the same time, the wealth effect of the public fund industry has gradually emerged.
According to a report by the Securities Association of China, as of the end of 2021, there were more than 720 million fund investors in China. In the past ten years, public funds have created a cumulative return of 6.25 trillion yuan for holders, and distributed a cumulative dividend of 1.2 trillion yuan to holders.
On the occasion of the establishment of the Shanghai Asset Management Association, Li Wen, President of the Shanghai Asset Management Association and Chairman of China Universal Fund Management Co., Ltd., accepted an exclusive interview with a reporter from China-Singapore Finance and Economics. Looking back on the ten-year development of the public fund industry, he used "full of changes". " to describe.
Li Wen believes that the public fund industry has shown five major changes and characteristics in the past ten years. First, the scale has grown rapidly, product types have been continuously enriched, and the investor structure has been further optimized; second, compliance has developed steadily, and the bottom line of compliance has been firmly adhered to, and no major system has occurred. The third is to promote innovation in an all-round way, and to achieve innovative breakthroughs in product business, management and operation, corporate governance, etc.; The holders have created long-term considerable returns and actively served the transformation and development of the real economy.
Li Wen emphasized that the ten-year development of the public fund industry cannot be separated from the policy "escort".
With the accelerated implementation of capital market reform and opening-up policies, a series of policies including the implementation of new asset management regulations, the deepening of registration-based reform, and the launch of the Science and Technology Innovation Board have created a favorable external environment for the development of the public fund industry.
"The issuance of the "Opinions" reflects the regulatory authorities' high recognition and expectations for the public fund industry, and gives the public fund industry greater responsibility and mission."
In Li Wen's view, the current public fund industry is entering a new stage of high-quality development, with huge room for development. The demand for financial management of residents continues to increase, the reform of the capital market continues to deepen, the pace of opening to the outside world is accelerated, and long-term funds such as pensions are accelerated to enter the market. The acceleration of net worth transformation will bring important opportunities for the industry.
"Entering a new stage of high-quality development, the public fund industry should actively grasp the five development concepts of 'responsibility, professionalism, innovation, openness, and long-term'." Li Wen said: "Responsibility is the value of the industry, and professionalism is the foundation of the industry. Innovation is the driving force for the development of the industry, openness is the development path of the industry, and long-term is the essential attribute of the industry, and the five concepts are interconnected and mutually reinforcing.”
When asked how the asset management industry represented by the public fund industry should face the competitive pressure brought by foreign institutions in the process of opening up, Li Wen pointed out that financial opening to the outside world is an important strategy that China has adhered to for a long time. The industry itself, especially the public fund industry, was established and developed in the context of opening up.
As the status of China's economy in the world economy continues to improve, there is a huge demand for overseas funds to "invest in China", and foreign capital is continuing to increase their holdings of Chinese assets.
"The opening of the capital market is a very important strategy for the internationalization of the RMB. In the process of becoming a major global currency, the RMB needs not only payment functions, but also investment functions. Chinese asset management institutions must strive to become managers of international RMB assets." Li Wen said.
While "bringing in", Chinese asset management institutions are also constantly exploring "going out".
Taking China Universal Fund as an example, it was the first to set up subsidiaries in Hong Kong in 2009. In 2021, it was approved to set up a subsidiary in the United States. It established UCITS funds in Europe, and actively cooperated with global asset management institutions in Japan, South Korea, Singapore, the Middle East and other places. To carry out cooperation, the global business layout has been initially completed.
Li Wen bluntly said that opening up will inevitably bring about global competition, but China's asset management market has a sufficiently broad space. Domestic asset management institutions should continue to strengthen international exchanges and cooperation, further improve international service capabilities, create diversified business sectors, and enrich international We will improve product lines, strengthen the construction of international talents, and shape an international asset management brand, so as to jointly create a more internationally competitive asset management industry.
"On the road of high-quality development, the public fund industry also needs to adhere to win-win cooperation with all walks of life to create an ecosystem for the asset management industry." Li Wen said that the 24-year development history of China's public fund industry has proved that public funds have developed Become an industry with sound systems, standardized operations, and adequate protection of investors' rights and interests.
With the continuous gathering of various domestic and foreign asset management institutions, the public fund industry will also help the asset management industry in the construction of relevant systems such as investment management, risk management, and information disclosure, create a good institutional environment, continue to improve industry capabilities, and jointly preserve the wealth of residents. Value-added and high-quality development of the capital market and the real economy.
Looking forward to the future, Li Wen said that the "cross-border" cooperation in the asset management industry will generate greater value. The newly established Shanghai Asset Management Association brings together all parties in the Shanghai asset management industry, covering bank wealth management, trust companies, insurance asset management, The six major asset management institutions of securities companies' asset management, public funds, and private venture capital funds, as well as related professional service institutions and various market factor institutions, are of great significance to Shanghai's construction of a global asset management center and an international financial center.
"It's like a forest, building a complete organism, and over time, we believe that the vitality of the entire ecology will become more vigorous." (End)