The 4th Anniversary of IB Wealth Management: Strive to write a new chapter of high-quality development without changing its original intention

2023 is the first year for the full implementation of the spirit of the 20th National Congress of the Communist Party of China, and it is also the fifth anniversary of the promulgation of the new asset management regulations. Five years ago, the new regulations on asset management were promulgated, and bank wealth management came into being in the midst of great changes in the asset management industry. Over the past five years, the wealth management subsidiaries of banks have gradually achieved comprehensive net worth transformation, returned to the origin of asset management, and grown from a "newcomer" in the asset management industry to a "main force" that cannot be ignored. Not long ago, the Central Financial Work Conference was held, which clearly put forward the grand goal of accelerating the construction of a financial power, and the meeting proposed to "do a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance", providing fundamental guidance for the high-quality development of bank financial management.

Standing at such a new historical starting point, IB Wealth Management, a wholly-owned subsidiary of IB, celebrated its fourth birthday. As one of the first batch of wealth management subsidiaries of joint-stock commercial banks, IB Wealth Management adheres to the principle of "the great power of the country", takes customers as the center, takes high-quality development as the main line, adheres to the vision of "leading the market with innovation and creating value with investment", continuously improves its management capabilities, improves mechanism construction, adheres to the road of marketization and specialization, and is determined to build a market-leading asset management company. According to the data, since its establishment, IB Wealth Management has served more than 24 million customers, created investment income of more than 260 billion yuan for customers, and managed more than 2.2 trillion yuan of wealth management products by the end of November this year.

Stand firmly on the people's position and cover the full coverage of the product system to meet diversified needs

The Central Financial Work Conference stressed the need to profoundly grasp the political and people's nature of financial work. To do a good job in financial work, we must adhere to the people-centered value orientation and constantly meet the economic and social development and the people's growing demand for financial services. Jing Song, chairman of IB Wealth Management, said that adhering to the political and people's nature is the primary condition for the high-quality development of bank wealth management. The primary starting point and foothold of the business development of the bank's wealth management subsidiaries is to serve the bank's customers well, and on the basis of practicing their own internal skills, to provide financial services to a broader customer base.

IB Wealth Management adheres to the people-centered approach, strives to create stable and predictable investment returns for the people, and protects the people's "money bags". In view of the characteristics of bank wealth management mainly for low-risk customers, IB Wealth Management has continuously improved its product system and built a multi-value coordinate system. At present, it has formed the "Bali brand", including "Tianli" cash management products, "Wenli" fixed income products, "Fengli" multi-asset and multi-strategy products, "Ruili" fixed income enhancement products, "Fuli" hybrid products, "Hongli" equity products, "Huili" cross-border investment products, and "Juli" project investment products, as well as three characteristic products: ESG wealth management, pension wealth management and Straits wealth management, to fully meet the diversified wealth management needs of the people. Taking ESG wealth management products as an example, IB Wealth Management leverages the advantages of green finance of its parent bank, Industrial Bank, to improve the system of green financial products and services, widely introduce green financial vitality, further promote the synergy of pollution reduction and carbon reduction, and promote the low-carbon transformation of economic and social development.

On the basis of practicing the "internal strength" of products, IB Wealth Management has simultaneously made efforts to lay out the construction of multiple channels. On the one hand, we will give full play to the advantages of the parent bank's nationwide operation, expand our customer base, strengthen the basic sales market, and fully meet the diversified wealth management needs of retail, private and institutional customers in the parent bank. At present, IB's wealth management products have covered 18 large commercial banks and more than 400 small and medium-sized banks such as urban commercial banks and rural commercial banks, and the number of distribution agencies is leading in the market.

Optimize resource allocation: Regional industries will make two-way efforts to serve the real economy

The economy is the body, finance is the blood, and the deep roots of the entity are the financial leaves. To do a good job in financial work, we must adhere to the fundamental purpose of serving the real economy. Since the promulgation of the new regulations on asset management, bank wealth management has returned to the origin of asset management, connected residents' wealth and the real economy with wealth management products as a link, made full use of the characteristics of wealth management products such as channeling, low cost, high transparency and high flexibility, widely gathered social funds, optimized the investment direction of wealth management funds with market-oriented principles, effectively converted social funds into social capital through a variety of investment channels, and gave full play to the function of direct financing tools to efficiently support the high-quality development of the real economy. According to the data, in the first half of 2023, bank wealth management will raise a total of 27.8 trillion yuan of social funds, and provide a total of 19 trillion yuan of direct financing for the real economy.

IB Wealth Management adheres to the deep integration of its own business development with the real economy. Since its establishment, IB Wealth Management has continued to guide wealth management funds to invest in major national projects and people's livelihood, opening up space for better serving the real economy. It is understood that in view of the financing pain points, difficulties and blockages of green and scientific and technological innovation industries such as new energy and semiconductors, IB Wealth Management cooperates with excellent private equity fund managers in the market through the issuance of private equity wealth management products to attract long-term funds for equity investment in the primary market of non-listed companies, giving full play to the unique advantages of bank wealth management in supporting the development of new industries and new tracks of the real economy, promoting the healthy development of the private equity industry and helping the construction of multi-level capital markets in mainland China while helping the "double carbon" and supporting scientific and technological innovation.

The Central Financial Work Conference pointed out that it is necessary to do a good job in five major articles: science and technology finance, green finance, inclusive finance, pension finance, and digital finance. Standing at the new starting point of the fourth anniversary, IB Wealth Management said that it will conscientiously implement the spirit of the Central Financial Work Conference, accelerate the march into a new track, and enhance the service capacity of the real economy; A series of innovative investment and financing tools, such as private placement investment, are the starting point to further accelerate the transformation of the new track.

Promote the "365" strategy, "forging strengths to make up for weaknesses" transformation, and strengthen core competitiveness

With the official end of the transition period of the "New Regulations on Asset Management", banks' wealth management products have entered a new stage of standardized development of comprehensive net worth. Compared with the "old forces" in the asset management track such as insurance asset management and public funds, the wealth management subsidiaries of banks are still "newcomers", and there is still a gap in building the underlying core capabilities that match the management scale, and there are still shortcomings in the investment research system and technology system.

Transformation and reform, strategy first. Since 2022, IB Wealth Management has actively embraced the development and reform of the asset management industry, based on its own resource endowment, continued to promote the transformation and reconstruction of its own capabilities, gradually formed the "365" transformation strategy, and carried out strategic reshaping in product layout, equity investment, asset construction, investment and research system, financial technology and other aspects, so as to achieve its own high-quality development.

In the "365" transformation strategy, "three" refers to the principle of "three suitability": appropriateness, marketability, and adaptability. Among them, suitability refers to the supremacy of the people as the general principle, risk management to protect the people's money bags as the appropriate standard, supervision and implementation to the online five centimeters as the appropriate standard, policy implementation to the Party Central Committee, Fujian Provincial Party Committee and the head office Party Committee as the appropriate standard, marketability to customer satisfaction as the standard, adaptability to asset construction safety and product term reasonable as the standard. The "six" and "five" in the "365" transformation strategy refer to the comprehensive implementation of the "six major restructurings" of investment research, assets, channels, products, risks and technology and the "five key capabilities improvement" of collaboration, professionalism, compliance, management and digitalization on the basis of the "three suitables", so as to build a first-class bank-based asset management company based on the underlying operating logic.

Among them, it is worth mentioning that among the "six major restructurings", the restructuring of investment and research capabilities is placed in the first place. Investment and research capabilities have always been regarded as the core competitiveness of asset management companies. IB Wealth Management has deepened the construction of the "234N" investment and research system, that is, the two-wheel drive of the two types of investment models of "independent investment + outsourced investment", the three-level decision-making system of hierarchical decision-making, hierarchical authorization, and clear rights and responsibilities, the four core research pools of bond pool, manager pool, strategy pool and stock pool, and the N investment business covering bonds, stocks, commodities, derivatives, creditor's rights, equity and other types of investment business. By adhering to the concept of professional winning, open cooperation, and technology empowerment, we will play a leading role in research and continuously consolidate our basic skills in investment and research.

At present, IB Wealth Management has formed an investment and research system covering fixed income, multi-asset, equity, index and other aspects that match the company's development plan. In order to realize the effective empowerment of the investment research system to the business, IB Wealth Management adheres to the goal of absolute return, focuses on the allocation strategy, and insists on "certainty" over "flexibility", and at the same time, it carries out equity investment research from the perspective of "region + industry" rather than individual stock in the direction of equity, grasps the strategic opportunities in key industries, improves the ability to obtain high-quality assets in the whole chain, and strengthens the construction of customized assets that meet customer needs. In addition, IB Wealth Management has also established a platform-based, industrialized and team-based production, investment and research organizational structure, vigorously strengthened the capacity building of research platforms and the efficiency of investment and research transformation, and strengthened the construction and refined management of asset pools, strategy pools and manager pools. By strengthening the construction and assessment of the research strategy simulation portfolio, we will promote the construction of the public strategy system, and create a simple, replicable and large-capacity investment strategy system that can be quantified, traceable and explainable and suitable for the management of large amounts of funds.

Digital Transformation Accelerates, "Builds Momentum and Empowers" Consolidates the "Power Source" for High-quality Development

The wave of digitalization has swept the financial industry for a long time, and the digital finance that was born from it is a new financial format that has been transformed and developed. The Central Financial Work Conference regarded digital finance as one of the "five major articles", reflecting the great importance that the central government attaches to digital finance. Under the guidance of the digital transformation policy of financial institutions, how to further promote the digital construction of business operations and realize the acceleration of financial technology to empower business?

Previously, in order to further promote the leapfrog and sustainable development of the wealth management business, IB Wealth Management planned three strategic initiatives for three consecutive years starting from 2022: one is to carry out the construction of a new generation of wealth management business platform focusing on customers, products, investment, risks and operations, the second is to improve the ability of data intelligent decision-making and comprehensively empower business development, and the third is to strengthen the group's strategic synergy and improve the overall customer experience.

At present, under the guidance of the strategic planning of digital transformation, IB Wealth Management has built an integrated IT system group covering the whole life cycle of wealth management covering four major sectors: product and sales, investment research and trading, risk control and compliance, valuation and operation, continuously improving the system service capabilities with customers, products, investment, risk and operation as the core, and building a system service group with complete data assets, reliable data quality, and The data center for efficient output of data value focuses on investment research and analysis, realizes the comprehensive quantification and intelligence of investment research, and supports the efficient operation and steady development of IB Wealth Management.

It is the right time to work hard, and start a new journey without slacking off. Looking forward to the future, IB Wealth Management said that it will unswervingly implement the spirit of the Central Financial Work Conference, always adhere to the political and people's nature of financial work, strive to write the "five major articles", serve the development of the real economy, promote the high-level virtuous cycle of science and technology, industry and finance, continue to promote transformation, enhance its differentiated competitive advantages, and contribute to the high-quality development of the economy.