China Southern Asset Management: Writing "Five Big Articles" to Create "Value" for the Real Economy

　　The Central Financial Work Conference pointed out the direction for financial development, put forward the goal of "accelerating the construction of a financial power" for the first time, and clarified the five major articles of "science and technology finance, green finance, inclusive finance, pension finance and digital finance", which provided a fundamental follow and action guide for promoting high-quality financial development in the new era and new journey.

　　"As a participant in the capital market, we are strongly encouraged to be optimistic about China's economy, actively long Chinese assets, and contribute financial strength in the new era to China's modernization. China Southern Asset Management said that it will follow the guidelines for high-quality financial development, continue to explore around the "five major articles", give full play to the role of professional institutional investors, create "value" for the real economy, add "warmth" to serve people's livelihood, keep in mind the "great man of the country", strengthen its mission, continue to explore the road of asset management with Chinese characteristics, and strive to promote the high-quality development of the capital market and asset management industry.

　　Firmly optimistic about China's economy and actively long Chinese assets

　　Over the past three years, China's macro economy has shown strong resilience, with an average annual compound growth rate of 4.5%, contributing about 40% to global economic growth on average. Since August 2023, a package of measures to stabilize growth has continued to be implemented, various economic data have stabilized and rebounded, and the cycle of weakening economy and weakening expectations has been blocked. China Southern Asset Management is firmly optimistic about the long-term growth potential of China's economy, and works with industry colleagues to actively go long on Chinese assets.

　　China's economy is resilient and has great development prospects. In the first three quarters of 2023, the mainland's economic growth rate has rebounded to 5.2%, indicating that China's economy is recovering steadily. According to the central bank's estimates, the mainland's potential GDP growth rate during the 14th Five-Year Plan period will be 5.1% to 5.7%, indicating that China's economy will be in an important stage of continuous release of growth potential for a long time to come.

　　China has the world's largest market and the most complete industrial system. From the demand side, the mainland has a total population of more than 1.4 billion, a middle-income group of more than 400 million, and a per capita GDP of more than 12,000 US dollars. The promotion of the national unified market will not only promote the flow of various factors of production, but also highlight the advantages of the mainland's super-large-scale market and super-large and deep space, and help expand domestic demand. From the perspective of the supply side, the mainland has basically built a comprehensive and large-scale industrial system, covering all industrial categories in the United Nations Industrial Classification, and the proportion of manufacturing added value in GDP has ranked first in the world for 13 consecutive years. In addition, the mainland's industrial structure is also significantly improving, and a number of advantageous industries represented by new energy vehicles, high-speed rail, and machinery and equipment have been formed. This is the embodiment of the mainland's long-term adherence to industrial upgrading and its firm promotion of the development of a low-carbon economy and high-end manufacturing.

　　The ecosystem of the capital market with Chinese characteristics continues to improve. The mainland has built a multi-level capital market system composed of the "Shanghai Main Board + Science and Technology Innovation Board", "Shenzhen Main Board + ChiNext Board", the Beijing Stock Exchange, the New Third Board and regional equity trading centers, and fully implemented the registration system with information disclosure as the core, greatly enhancing its ability to serve the real economy. With listed companies as the carrier, a virtuous cycle system of "science and technology-industry-finance" is taking shape. On the other hand, with the continuous improvement of the capital market system and the continuous optimization of the regulatory system, the overall quality of listed companies has been steadily improved, bringing increasingly lucrative returns to investors and gradually increasing their own attractiveness. Taking the CSI 300 Index as an example, as of the end of the third quarter of this year, the overall dividend ratio of the constituent stocks of the CSI 300 Index has increased significantly from about 34% in the past 10 years to 39% this year. Under the guidance of the spirit of high-quality financial development, the investment function of the capital market will become more prominent, and investors' sense of gain is expected to be qualitatively improved.

　　Keeping integrity, innovating and making progress in stability, public funds have a lot to do

　　The high-quality development of finance is the main theme of the Central Financial Work Conference, which clearly put forward the "five major articles of science and technology finance, green finance, inclusive finance, pension finance and digital finance". China Southern Asset Management said that asset management institutions will play a more important role in improving the quality and efficiency of the capital market in serving the real economy, promoting the high-level circulation of science and technology, capital and the real economy, promoting the upgrading of industrial structure and green transformation, meeting the financial needs of residents, and serving the national pension strategy.

　　In the field of technology finance, China Southern Asset Management will continue to adhere to long-term investment, value investment and responsible investment in the future, continue to strengthen the cultivation of investment and research talents in technology-related industries, and explore the new generation of information technology, artificial intelligence, biotechnology, and biotechnology around the new growth engine. Investment opportunities in the field of new materials, through in-depth fundamental research, give full play to the pricing power and product creation ability of professional institutional investors, guide social capital to gather in outstanding and potential enterprises in strategic emerging industries, improve the convenience of equity financing for science and technology enterprises, promote the formation of high-quality innovative capital, improve the resilience and security of industrial and supply chains, and enhance the innovation efficiency of the real economy.

　　In the field of green finance, as a responsible investment institution, China Southern Asset Management has practiced the ESG investment philosophy, built a "carbon emission database" through financial technology and AI algorithms, and formed a three-dimensional ESG rating system based on quantitative ratings, supplemented by researcher ratings, and external ratings as references, to help achieve the long-term goal of reducing carbon emissions in the investment portfolio. As of the end of 2022, according to the statistics of the Green Industry Guidance Catalogue (2019 Edition), the cumulative total green investment of China Southern Asset Management's products exceeded 200 billion yuan. In the future, the company will continue to enrich the supply of green financial products, actively promote and assist the green and low-carbon transformation of listed companies, and strive to promote a virtuous cycle of ecological environment and economic development through ESG investment, while grasping the huge investment opportunities in the green transformation of China's economy.

　　In the field of inclusive finance, China Southern Asset Management will always adhere to the customer-centric approach and earnestly fulfill the mission of inclusive finance. The first is to give full play to professional advantages, according to market conditions and customer needs, to provide investors with high-quality fund products at a relatively low level in the market, to guide investors to look at the economic and financial situation and the development potential of the capital market objectively and rationally in all aspects, and to share the dividends of China's economic growth; Third, we will actively build financial infrastructure, create a scenario-based and intelligent fund wealth management platform, and provide customers with one-stop, full-cycle and full-scenario fund wealth management services to enhance investors' sense of gain and happiness.

　　In the field of pension finance, as a fund company with a "full license" for pension investment management, China Southern Asset Management has continued to deepen its efforts in various pension investment management businesses, forming a national pension asset management system including social security, basic pension, enterprise annuity, occupational annuity and public pension products, and the scale of various pension assets under management ranks among the forefront of the industry. In the future, the company will further give full play to its advantages, actively develop various fund products with stable style, clear strategy, lock-in period and reasonable concession to investors, improve the risk-return curve and product pedigree of public funds, and strive to provide customers with comprehensive personal pension services integrating "product + account + companionship", so as to better meet the diversified pension investment and capital use needs of the public, and help the development of the national pension system with high-quality and sustainable asset management capabilities.

　　In the field of digital finance, China Southern Asset Management actively embraces financial technology, formulates a clear top-level design, takes platform construction as the foundation of digital transformation, and focuses on building a user-centric asset management system that organically integrates the company's products, marketing, research, investment, trading, risk control, operation and other businesses, so as to achieve the integration of business capabilities and the effective accumulation of business knowledge and experience. In the future, the company will continue to empower the company's investment management and business development based on cloud-native technology, supported by business middle platform and data center, and supported by asset management system and smart office platform, and promote the company's transformation from a traditional asset management company to a digital, intelligent and intelligent asset management company.

　　Source: Guangzhou Daily

　　Disclaimer: This article is a reprint and does not represent the position of this journal and does not constitute investment advice.