In recent years, with the reform of interest rate marketization, reform of exchange rate formation mechanism, RMB internationalization, and the rise of Internet finance, commercial banks have entered the era of "big asset management" in which all assets are managed. In order to cope with the profound changes in the economic and financial environment, commercial banks' asset management business should focus on the long term, actively seek transformation, and return to the essence of asset management.
Li Bin, vice president of China Minsheng Bank, said at the conference that the bank follows the changes in the market environment and customer demand, attaches great importance to the transformation and development of the capital management business, and takes the capital management business as one of the key strategic businesses for the future transformation, which is positioned as a "big capital management" era for the whole bank in the reform of "Phoenix Program". In the "Phoenix Program" reform, the bank has positioned asset management as a "big asset management" product platform for the whole bank, and is committed to building an all-round "extraordinary asset management" brand. In the future, Minsheng Bank will focus on accelerating the transformation of its asset management business in five areas, opening up a specialized and differentiated road to asset management development, and creating a gold standard for Minsheng Bank's wealth management while continuing to boost the development of the real economy.
One is management transformation, promoting the transformation of governance model and organizational structure to market-oriented, and carrying out independent and specialized risk management reform.
The second is the transformation of the profit model, to promote the transformation of the profit model to non-carrying, capital management business income model from the carry income to the management fee model change.
Third, investment transformation, stand in the global perspective to promote the transformation of investment varieties of broad categories, diversification, strengthen portfolio management, enhance the active asset management capabilities, and do a real asset management business.
Fourth, the transformation of products and channels, the gradual return of products to the origin of "asset management", the transformation of product forms from expected return to net value, and from closed to open, and the construction of a three-dimensional marketing transformation to online and offline, combining product standardization and batching with personalization and specialization, and enhancing the sales capacity of online mobile channels and offline agent channels. offline agency channel sales capacity.
Fifth, technological transformation and upgrading, the introduction of "Internet +", "big data", "intelligent" new technologies into the asset management business, to enhance the ability to tap customer demand and the efficiency of risk management. The company has also introduced new technologies such as "Internet+", "Big Data" and "Intelligent" into its asset management business to enhance its ability to tap customer demand and improve its risk management efficiency.
2, innovation to support the development of the real economy
Over the past 10 years, the domestic bank asset management business has achieved rapid development, not only to help the majority of investors to realize the value of the wealth preservation and appreciation, but also for the bank to serve the entity to build a platform for investment and financing, and to promote the traditional bank profit model transformation and enhancement.
According to the introduction, Minsheng Bank's asset management business started in 2002, and it is one of the first commercial banks to carry out wealth management business in China. After 15 years of pioneering innovation and professional development, by the end of 2016 Minsheng Bank wealth management balance exceeded 1.4 trillion yuan. In the past three years, the scale of Minsheng Bank's wealth management has grown by more than 1 trillion yuan, with a compound annual growth rate of 70%, and the level of customer returns has ranked in the forefront of the industry for many consecutive years.
Over the past 15 years, Minsheng Bank has been adhering to the asset management philosophy of "Wealth Management for the People, Life with the People", not only creating stable investment returns for its wealth management customers, but also vigorously fostering strategic emerging industries, boosting the transformation and upgrading of China's real economy, and actively assuming its social responsibility as a large financial institution.
According to Li Bin's introduction, Minsheng Bank has been closely focusing on national strategies such as the "Belt and Road", Beijing-Tianjin-Hebei Cooperative Development, and the Yangtze River Economic Belt, and has been supporting the development of the real economy through a variety of tools, such as debt investment, equity investment, industrial funds, and securitization of assets, etc. The balance of Minsheng Bank's wealth management funds invested in the real economy exceeded 1 trillion yuan in 2016, focusing on serving the national economy. trillion yuan, focusing on serving national strategic projects and key areas of the real economy, covering such industries as infrastructure construction, transportation, public utilities, petrochemicals, pharmaceuticals and healthcare industries, and traditional manufacturing industries.
Minsheng Bank's financial investment in industrial funds and government-guided funds has exceeded RMB 40 billion, successfully supporting a number of key projects such as Chongqing Dadukou Diaoyu Peninsula PPP Project, Tianjin Wuqing District Project, Kunming Railway Transportation Project, Xi'an Xixian District Sponge City Project, Nanjing Jiangbei Infrastructure Equity Investment Fund, and Bozhou Traditional Chinese Medicine Industry Fund.
Minsheng Bank also actively responded to the policy of "de-channelization" and vigorously reduced the cost of corporate financing. Since 2013, as one of the first pilot organizations, Minsheng Bank has always ranked first in the industry in terms of the issuance scale and number of wealth management direct financing tools, and has issued more than 50 billion yuan of products for more than 100 real enterprises. It closely serves the supply-side reform, supports the development of the real economy, and practically reduces the cost of corporate financing through de-channelization.
3. Specialization to enhance active management capacity
According to Li Bin, Minsheng Bank has built a broad asset allocation system suitable for wealth management business, and carries out asset allocation through the mode of risk budgeting. Minsheng Bank has also established an investment and research system that emphasizes timing and process control, locking in returns and avoiding risks in advance so as to reduce overall investment risks.
For example, in June-July 2015, when the stock market was violently shaken and the SSE index fell by more than 47%, Minsheng Bank's equity entrusted investment still achieved an annualized investment return of more than 4%, quantitative entrusted investment achieved an annualized return of 16%, and Classified A entrusted investment realized an annualized return of 33%.
Minsheng Bank has been responding to changes in the times and the situation, and has continued to meet the needs of investors for value preservation and appreciation. In recent years, Minsheng Bank has promoted its extraordinary asset management products to the western region and third- and fourth-tier cities through the opening of new branches and affiliated village banks, and the use of direct and proxy sales; it has met the needs of high-net-worth clients and private banking clients through innovative asset allocation and portfolio management; it has met the cash management needs of corporate clients through its T+0-type products; and its Zenith Standard products, which come with a customized list of investments, have met the the needs of financial institutions' interbank investments and the information disclosure requirements of listed companies.
Minsheng Bank has made great efforts to build the brand of "Extraordinary Asset Management" by launching eight series of fist products, covering all types of customers through multiple channels and in an all-round way, and endeavoring to satisfy the diversified investment needs of ordinary individual customers, high-net-worth customers, private banking customers, as well as corporate customers and interbank customers. In the past three years, Minsheng Bank's wealth management products have been issued at an average annual scale of more than RMB 4 trillion yuan, with an average of more than 4,000 products issued annually, serving more than 1.7 million individual customers and more than 5,000 institutional customers, and realizing cumulative returns of more than RMB 100 billion yuan for investors over the past three years.
4. Diversification of Asset Allocation
Currently, Chinese enterprises are accelerating their "going out", and the strategy of internationalization of the RMB and industrial transformation of enterprises have provided new opportunities for cross-border asset management business. Minsheng Bank has taken the initiative to actively allocate overseas assets, diversifying its investments and continuously improving asset returns through the allocation of offshore RMB large deposit certificates, Chinese dollar-denominated bonds, and Hong Kong stock fixed income.
Particularly in the context of the national "Belt and Road" strategy, Minsheng Bank has seized the strategic opportunity to accelerate the pace of overseas asset allocation, actively integrate into the international financial system, and proactively serve global clients. At the same time, Minsheng Bank has introduced investment in innovative tools such as equity, quantitative, and rated A, accurately grasping major market opportunities and realizing asset diversification.
This year, the domestic asset management business has shown diverse changes in terms of market demand, asset quality, Internet trends and marketing channels, and Minsheng Bank has made timely adjustments to its marketing strategy.
On the one hand, Minsheng Bank continues to expand its retail base, including domestic high net worth clients and private banking clients, to enhance the convenience and satisfaction of clients' business operations through mobile communications such as cell phones and the Internet; and to improve the online promotion capability of its products through the modification of Internet-based systems and the use of big data to develop new clients, especially the young client group.
On the other hand, Minsheng Bank has subdivided its public customer base, especially corporate and interbank customers, innovated its products to meet the needs of customers in various aspects, launched precise marketing campaigns, and strengthened the construction of Internet channels for public customers.
5. Building three lines of defense for risk management
Minsheng Bank's asset management business is different from traditional credit business in that it has unique risk characteristics and management modes. Minsheng Bank always puts risk prevention and control in the first place, focusing on building "three lines of defense" for risk management, and has established a comprehensive risk management system covering all lines of asset management business.
The first line of defense is the endogenous mechanism of risk management. Minsheng Bank has established a committee decision-making mechanism to form a risk management pattern of internal checks and balances and external constraints; it has also established a closed-loop risk management with two tightened ends, which includes a risk review of project issuance and post-investment monitoring of assets, so as to control, reveal and dispose of risks in a timely manner.
The second line of defense - professional risk management capability. Minsheng Bank has divided its risk management department into three major risk management areas, namely corporate, retail, and financial market, and has established a professional financial market risk management department and team, which has gradually formed a risk management capability that is quick to reflect, professional in management, and effective in risk control.
The third line of defense - the establishment of a regular supervision mechanism. Minsheng Bank plays the audit function of internal independent auditing, and regularly inspects, supervises and optimizes the key business and management processes of asset management, which ensures the long-term and sound development of the asset management business of the whole bank.