Interface News Reporter | Han Yuhang
With the high-quality development of China's financial market, more and more foreign institutions have begun to invest in the Chinese market, actively exploring new opportunities for the development of China's asset management market. As the first financial city in China, Shanghai has also become a bridgehead for global capital to gather in China.
What requirements will the gathering of domestic and foreign capital pose for Shanghai? As an important lever for Shanghai to strengthen its global resource allocation function, developing the asset management industry is of paramount importance. What kind of development path will joint venture asset management institutions take in the collision of global wisdom?
In response to the above issues, Interface News recently interviewed Zhang Pengjun, General Manager of BlackRock Jianxin Wealth Management Company.
In our opinion, the Chinese asset management industry has entered a stage of high-quality development, and Shanghai is the city with the most complete international financial market system, the most sound financial ecological environment, the most mature financial culture atmosphere, and the highest degree of financial internationalization. "When discussing the reasons for Beilide to establish a joint venture wealth management institution in Shanghai, China, Zhang Pengjun summarized it as follows.
What changes have foreign financial institutions brought to China?
Interface News: The opening up of China's financial industry is constantly deepening, and we are seeing more and more foreign institutions settling in Shanghai. What changes will this bring to Shanghai and China's asset management industry?
Zhang Pengjun: Many foreign financial institutions are expanding their business in Shanghai, which has the most direct effect of accelerating the construction of Shanghai International Financial Center and Global Asset Management Center. The driving force behind this is to see the development potential of China's asset management market. The continuous deepening of foreign financial institutions' business in China will not only bring diverse investment concepts and mature risk management models from around the world, but also continue to introduce rich financial products, advanced technology platforms, innovative financial services, as well as various excellent financial talents. All of these will promote the construction of Shanghai International Financial Center to a higher level.
Specifically, foreign financial institutions will bring positive changes to the domestic financial industry in the following four aspects: firstly, further enriching the functional elements of the financial market and enhancing the resource allocation capability of Shanghai International Financial Center; 2、 Further promote innovation in the financial regulatory system and lead the high-quality opening up of the financial industry; 3、 Further improve the development and application level of financial technology, and enhance the efficiency of financial services; 4、 Further attract outstanding financial talents from around the world, promote international exchanges and the comprehensive development of the industry.
Interface News: According to international standards, what areas need to be improved in order for Shanghai to become a world-class financial center?
Zhang Pengjun: Shanghai has made remarkable achievements in the construction of an international financial center. Next, we can work together in the following three areas.
Firstly, efforts should be made to increase the participation of international financial institutions in various factor markets of Shanghai International Financial Center, especially in some important and internationally influential factor markets. We still have room for improvement in product development, interconnectivity, legal environment, and policy stability.
Secondly, we will strive to develop digital finance, promote financial technology innovation, and explore the best practices for international governance of financial data. It should be noted that digital finance has become the leading field of innovation in international financial centers and is one of the core elements of the competitiveness of future international financial centers. Shanghai has already taken a leading position in the field of digital finance domestically, but there is still significant room for improvement in internationalization.
Finally, we will strive to develop an inclusive international financial culture and enhance the cultural connotation and influence of Shanghai International Financial Center. This includes building an excellent financial culture, a cautious risk awareness and high standards of professional ethics, an international business and living environment, and respect and tolerance for multiculturalism.
Interface News: The increasing uncertainty of global economic development has had an impact on the business of joint venture financial institutions, and how should we respond?
Zhang Pengjun: I am more willing to understand the challenges brought by various complex uncertainties at home and abroad to joint venture wealth management institutions as the requirements for high-quality development of this industry. The current market environment is changing rapidly, and the structure of investment products is becoming increasingly complex. Both the market and investors have put forward higher requirements for financial institutions on how to better fulfill their fiduciary responsibilities, how to effectively carry out investment education, manage investor suitability, and provide investor companionship throughout the product lifecycle.
Secondly, we must strive to create long-term, stable, and sustainable investment returns for our clients. How to strive for relatively stable returns for investors in the face of uncertain markets? This requires joint venture wealth management institutions to better integrate local market knowledge and international investment experience, build unique investment management capabilities, and strive to provide investors with relatively satisfactory investment returns.
The last requirement is determined by the foreign investment characteristics of joint venture wealth management institutions, which usually need to meet complex regulatory requirements and compliance standards in multiple different countries and markets to ensure the healthy development of their business.
The differentiated development path of joint venture wealth management
Interface News: Faced with the continuous deepening of China's asset management market opening up to the outside world, how will joint venture wealth management companies find a differentiated competitive path?
Zhang Pengjun: On the one hand, it is necessary to have insight into the long-term trends and laws of market development, and on the other hand, it is even more important to have a deep understanding of customers' financial needs and preferences, and based on this, design high-quality products and services that match customers.
In terms of product line, we are committed to providing customers with the most comprehensive selection of wealth management products, covering different risk levels from R1 to R5, as well as some special pension products and overseas products. We hope to provide customers with different risk tolerance and wealth management needs with rich choices and suitable products.
Behind the product line, it relies on its own investment research and risk management capabilities. In terms of fixed income investment, we will further build our own investment capabilities, enhance our ability to actively capture market-oriented returns, and do a good job in consolidating the fundamentals; In terms of multi asset investment, we will leverage the overseas resources of foreign shareholders to enhance our proactive selection of global multi asset and portfolio allocation capabilities, and to optimize and strengthen our distinctive properties. Basic and characteristic stocks complement and reinforce each other, and by fully drawing on BlackRock's globally leading risk quantification management and investment portfolio construction methods, a distinct differentiated competitive path can be established.
Interface News: How do you view the three years since the establishment of BlackRock CCB Wealth Management?
Zhang Pengjun: Since its establishment in 2021, BlackRock Jianxin Wealth Management has been established for more than three years. If we summarize these three years with three key words, the first is to adhere to a learning attitude; The second is to adhere to the spirit of entrepreneurship; The last point is to firmly believe in a bright future.
We believe that the prospects of China's wealth management market are very broad, and customer demands are also very clear. The country has recently introduced a series of heavyweight policies aimed at stabilizing economic expectations, strengthening market confidence, and stimulating economic development, which has made us more convinced of the bright future of the capital market.