Cathay Fund Zhou Xiangyong: Born at the right time, strive to move forward, and solve the pain point problems of the fund industry

Excerpt from Zhou Xiangyong's views:

Looking forward to the capital market in the new year, we believe that the key word will be "steady progress". At present, the strategic position of the capital market is at a historical height, the A-share market is ushering in a golden period of development, and the policy will also be "stable". Overall, although the market was relatively volatile at the beginning of the year, the short-term adjustment may lay the foundation for medium- and long-term opportunities for high-quality investment targets.

We remain relatively optimistic about the stock market in 2022, the main opportunities in the rhythm may be concentrated in the first half of the year policy marginal relaxation, the economy gradually stabilized and recovered stage, the market opportunities are mainly structural, the first half of the year style is expected to be more balanced.

▲Zhou Xiangyong, general manager of Cathay Fund

Zhou Xiangyong, General Manager of Cathay Fund, sent a message for the Chinese New Year in 2022

The year 2021, which has just passed, marks the 100th anniversary of the founding of the Communist Party of China and the beginning of the 14th Five-Year Plan. Looking back on this extraordinary year, the capital market has shown a clear structural market in the post-epidemic era. From the perspective of the whole market, the rotation between sectors has accelerated, and the difficulty of ordinary investors obtaining alpha has increased significantly. This also puts forward higher requirements for institutional investors. On the one hand, we need to be more forward-looking, more determined, in the short-term market sentiment and trading fluctuations to maintain calm, make rational choices; on the other hand, we need to delve more, more focused, in the rapidly changing market environment, dig out the investment direction with long-term value, grasp the pulse of the opportunities of the times.

Looking forward to the capital market in the new year, we believe that the key word will be "steady progress". At present, the strategic position of the capital market is at a historical height, the A-share market is ushering in a golden period of development, and the policy will also be "stable". Overall, although the market was relatively volatile at the beginning of the year, the short-term adjustment may lay the foundation for medium- and long-term opportunities for high-quality investment targets. We remain relatively optimistic about the stock market in 2022, the main opportunities in the rhythm may be concentrated in the first half of the year policy marginal relaxation, the economy gradually stabilized and recovered stage, the market opportunities are mainly structural, the first half of the year style is expected to be more balanced. Such a market environment is conducive to asset management institutions to conduct research and investment.

Needless to say, the capital market has a great future. Up to now, the proportion of the market value of public funds holding shares in all the outstanding shares of A-shares is still low, and with the environment of housing and non-speculation deeply rooted in the hearts of the people, the transformation of net worth under the new regulations on asset management has accelerated, and stable assets are in urgent need of high-quality investment targets to undertake long-term funds from customers. In the process of mutual empowerment with scientific and technological innovation, public funds have shown great space and unlimited possibilities. The prospects and capacity of the industry are waiting for more professional institutions and professional capital to be explored. The strategic position of the capital market is at a historical height, public funds are ushering in a golden period of development, and the scale of the industry is constantly hitting a record high.

Standing at a new historical starting point of the 25 trillion yuan public offering industry, looking forward to the future, what should our fund companies do? Previously, Chairman Yi Huiman's discussion on the high-quality development of the industry has pointed out the direction for Cathay Fund: keep the original intention, practice internal skills, excellent service, and accelerate the high-quality development of the fund industry.

Keeping the original intention, that is, not forgetting the fundamentals, not forgetting the national original intention of serving the national strategy and promoting common prosperity. In the process of transition from high-speed economic development to high-quality development, fund companies need more accurate insight and strategic vision, grasp the national fortune and national pulse, and give play to the role of financial institutions in allocating resources. Whether it is product layout or investment direction, Cathay Fund will continue to take the national development strategy as the guideline, select those industries that have a high positive influence on promoting the high-quality development of the country in the long run, and lay out the real high-value investment targets in the subdivision field.

Practicing internal skills, that is, continuously improving investment management capabilities. We will be committed to deeply cultivating professional investment and research capabilities, in terms of investment research talent training, the company adopts the pattern of old with new, new and old collocation, and independently cultivates a group of fund managers with distinctive characteristics. In the face of the market with sharp market differentiation and violent fluctuations, we will always maintain a reverential and humble attitude, do research seriously, do not invest with a "bet-style" game mentality, and really continue to build investment capabilities, and strive to return the trust of investors with excellent performance. It not only improves the sense of acquisition of the basic people, but also further improves the sense of experience of the basic people.

Excellent service, that is, to further improve the quality of service. We will strive to improve the sense of acquisition and experience of the basic people, and solve the problem of "the fund makes money, the basic people do not make money". In terms of product design, we will continue to launch closed-end and holding-period products, from the perspective of product underlying design, to help investors control the action of chasing up and killing and frequent transactions, and obtain a better long-term income experience; in terms of investment research, we will improve the holding experience of holders buying funds through in-depth value research. In addition, we will actively promote the landing of investment advisory business and bring solution-based investment accompaniment.

Guotai is the people's security, and the people's yu is the country's strength. At present, the national economy is transitioning from a stage of high-speed development to a stage of high-quality development, and the prospects of the asset management industry are unprecedentedly broad. At the right time, we should fully cherish the opportunity and forge ahead. We will further handle the relationship between scale, structure and development quality, further strive to grasp the overall balance of standardization, innovation and risk prevention, further achieve the same promotion and common progress of the industry's own development and customer value growth, further return to the origin of the industry, further deepen the industry culture, and promote a sound development ecology. Strong professionalism, keep the bottom line, tree brand, talk about feelings, highlight the greater responsibility of the fund industry in serving the real economy and building a new development pattern, return investors' trust with excellent performance, return investors' trust to improve risk control, and return investors with convenient, easy to obtain and fast investment channels and investment products. Cathay Pacific Fund is willing to do its best to move forward side by side with the times and with investors to start a new journey of high-quality development.

Risk Warning

Opinions are for informational purposes only and do not constitute investment advice or commitments. The market is risky and investments need to be cautious.