China Fund News reporter Zhang Yanbei and Lu Huijing
On April 23, the 20th Anniversary Forum of ETFs hosted by China Fund News was held in Shenzhen.
In the roundtable discussion session of "ETF Wave Promotes the Healthy Development of the Capital Market", seven ETF and index investment experts from the public offering industry gathered together to review the development process of the ETF market and imagine the sea of stars of passive investment. They conducted in-depth discussions on how ETFs affect the development of the capital market, their value in residents' asset allocation, and the direction of innovation in fierce competition, and explored feasible ways to help ETF investors achieve the goal of "getting rich together".
The roundtable discussion was chaired by Zhao Xu, Deputy General Manager of ICBC Credit Suisse Fund Index and Quantitative Investment Department, and the guests participating in the roundtable discussion were Zhao Yunyang, General Manager and Investment Director of Index and Quantitative Investment Department of Bosera Fund, Wang Lele, ETF Investment Director of Quantitative Investment Department of Wells Fargo Fund, Wang Yang, General Manager of Invesco Great Wall ETF and Innovation Investment Department, Ai Xiaojun, Director of Financial Engineering of Cathay Pacific Quantitative Investment Department, Zhang Kai, Deputy Director of Quantitative Investment Department of Yinhua Fund, and En Xuehai, Chief Investment Officer of China Asset Allocation and Pension Management of JPMorgan Asset Management.
Speakers & Views:
Zhao Xu, Deputy General Manager of Index and Quantitative Investment Department of ICBC Credit Suisse
Zhao Yunyang, General Manager and Investment Director of Index and Quantitative Investment Department of Bosera Fund
Wang Lele, ETF Investment Director of the Quantitative Investment Department of Wells Fargo Fund
Wang Yang, General Manager of Invesco Great Wall ETF and Innovation Investment Department
Ai Xiaojun, Director of Financial Engineering of Cathay Quantitative Investment Department
Zhang Kai, deputy director of the quantitative investment department of Yinhua Fund
J.P. Morgan Asset Management, Chief Investment Officer, Asset Allocation & Pension Management, China
Zhao Xu: ETF products have made more and more investors accustomed to observing the market with the eyes of the index, and also used to using ETFs as an allocation tool, this trend will not change in the future, and I believe that China's capital market and ETF market will continue to achieve each other in the future. Zhao Yunyang: The emergence of the ETF market has had a big impact on investor behavior, prompting investors to pay more attention to the benchmarks their portfolios track, so as to achieve wealth management and investment advisory business expansion. Ai Xiaojun: We hope that in the next 10 years, China's ETF market will achieve a growth rate of 4 times or even higher than that of the US market, and we are full of confidence in this. Wang Lele: With the vigorous development of the ETF market, strategy R&D and iteration have become the core of competition. In the past, when investors bought ETF products, they often decided on their own investment strategy. In the future, fund companies need to provide more investment education and services around the strategy system to meet the needs of different investors. Wang Yang: ETF innovation: the first is product, the second is strategy, and the third is entertainment. From the perspective of the next decade, I am firmly optimistic about the wave of technology represented by AI. En Xuehai: We believe in the long-term investment value of the Chinese market, J.P. Morgan Asset Management is still very confident in the annualized return expectation of the Chinese market in the next 10-15 years, if everyone tends to believe this judgment, we should hold China's core assets, and the CSI A50 Index should be our core assets. Zhang Kai: The development of ETFs has enriched the investment tools of the capital market, changed the investment habits of participants, reshaped the concept and model of securities investment, and had a profound and positive impact on the development of China's capital market. The following is a summary of the roundtable transcript: 1. The ETF wave is coming to promote China's capital market to a new eraZhao Xu: First of all, I want to deduct the theme first. In the past two years, the wave of ETFs has swept the domestic market, how has this wave affected the development of China's capital market? What are the key factors worth paying attention to in this process? Zhao Yunyang: We have just heard a passionate discussion about the era of ETF development, and a lot of data shows us a broad market space. In this era, the ETF market is on a big track of 2 trillion ~ 10 trillion yuan, and all kinds of participants are working hard to develop. Whether in the United States, China, Europe or Japan, the flood of passive investment has driven the rapid development of the ETF market. It took both the United States and China 17 years to complete the first 1 trillion (dollars, yuan) accumulation.
In this era, as an asset manager, how to achieve differentiated competition in the ETF market, and what impact and changes have this investment product and method had on investors and other participants?
First of all, Bosera Fund defines and plans our products from the perspective of assets, and uses ETFs as a simple and convenient investment tool to carry various assets. We know that all assets have their own investment cycles and style characteristics, and ETFs are the real precipitation of these assets. With these underlying assets, we can carry out asset allocation, so as to achieve the expansion of wealth management and investment advisory business. This is a multi-in-one system construction process.
Secondly, the emergence of the ETF market has had a great impact on investor behavior. At present, the number of investors participating in ETF investment is less than 10 million, far less than the 200 million shareholders and 700 million basic citizens. Therefore, our priority is to attract more investors to convert to ETF investors. In addition, because ETFs adopt an indexation investment strategy, the underlying assets are index-tracked, which also prompts investors to pay more attention to the benchmarks that their portfolios track.
Finally, although the ETF market is expanding rapidly, we also need to be aware of the potential risks. Therefore, on the basis of a strict risk control system and a sound ecosystem, we should actively promote the development of China's ETF market.
Wang Lele: Today, I am deeply inspired, especially by hearing the views of Zheng Xia, President of Ping An Securities, on the development trend of the ETF industry, that is, the transformation from product sales to strategic sales. This has had a profound impact on the capital market, mainly in the following aspects.
First, the market is institutionalized. The popularity of ETFs has prompted investors to shift from investing in individual stocks to more robust indices, which has led to the institutionalization of the market. This shift can help reduce market volatility and improve overall investment returns.
Second, the change in investors' perceptions. In the past, investors expected companies and fund managers to grow their wealth. However, the popularity of ETFs has made investors aware that it is also crucial to understand the market and develop strategies accordingly. This change in perception helps investors to participate in the market more rationally and reduce investment risks as much as possible.
Third, the awareness of asset allocation has been improved. ETFs have made institutional investors pay more attention to asset allocation, such as the Hong Kong stock market. This increased awareness can help improve overall investment returns and reduce risk in the single market.
In the development of the ETF industry, we focus on two major directions.
First, tool innovation. From the SSE 50 Index to the CSI A50 Index and the SZSE 50 Index, the development of ETFs has promoted the update and iteration of the index, providing investors with more valuable investment tools. These innovative tools enable investors to better capitalize on market opportunities and grow their wealth.
Second, strategic. ETFs need to be combined with strategies to form a complete asset allocation system. In the past five years, Wells Fargo Fund has been committed to building a service system around strategy, and has launched tools such as the "E-Fortune" WeChat mini-program, aiming to provide end customers with a better investment experience. These strategic tools and services help investors better respond to market volatility and strive for long-term stable investment returns.
In short, the development of the ETF industry has brought new investment ideas and tools to investors, promoted the transformation of wealth management, and provided more empowerment for brokerage investment advisors. In this process, we believe that through continuous innovation and optimization, ETFs will create a better future for investors.
Wang Yang: We were deeply impressed by Mr. Lele's wonderful speech, which skillfully demonstrated to us the advantages of products such as the Shanghai Composite Index ETF. I have relatively a lot of work experience in the ETF field, and I have found that a clear trend in China is that investors are gradually changing from shareholders to basic people, and now they have become "E people", and the number of ETF holders is growing rapidly.
Taking Invesco Great Wall as an example, as the first Sino-US joint venture in China, we started relatively late in the ETF space, but fortunately, we accurately grasped the opportunities brought by the growth of domestic investors' demand for overseas asset allocation, which to some extent explains an important direction for the rapid development of the ETF industry.
In the past, everyone's focus was mainly on the A-share market, and the investment granularity was constantly refined, from the primary industry to the secondary industry, and even to the fourth industry.
However, if we broaden our horizons, we will find that there are still a lot of blank areas waiting to be explored, such as fixed income, cross-border and domestic areas that have developed rapidly in recent years, as well as major types of innovation such as derivatives. The ETF itself is just a carrier, and it can carry various strategies behind it. From Invesco Great Wall's point of view, domestic investors' love for U.S. stocks and technology reflects that there is still a lot of room to make up for it in terms of investment tools, which is one of the biggest opportunities we face.
The second opportunity lies in the diversification of investor categories. We're all publishers here, and we're in charge of making tools. However, the key to activating these tools lies with market makers. In the past, domestic market makers dominated the market, and later overseas market makers, private equity funds also joined in, and even some high-net-worth individual investors began to set foot in this field. This gives us a huge room to grow. From national teams to institutional investors, to retail investors, all types of enterprises, and even family offices and private wealth managers, they have begun to pay attention to and participate in the ETF market.
In short, we are in a big era of ETFs, and the market dividends are obvious. However, as competition intensifies and new entrants emerge, so does the difficulty of the market. In addition to the top 20 or 30 fund companies, more and more fund companies are also eager to try, because from a strategic point of view, ETF or index investment has become an important direction that cannot be ignored.
Ai Xiaojun: Thank you very much to China Fund News for giving us this valuable exchange opportunity. This year marks the 20th anniversary of the development of China's ETF market, and looking back on the past 20 years, including what Mr. Fan just mentioned, we found an interesting coincidence: it took 17 years for the domestic ETF market to reach 1 trillion yuan, and it took only two years for the next 1 trillion yuan to reach a scale. In these two years, we can see that investors actually made more significant gains in the first two years. At that time, actively managed funds faced certain bottlenecks or short-term difficulties, and ETFs came to the fore and provided investors with an alternative investment perspective.
At this stage, we believe that there is a gap between the market pressures of the past two years and the sense of gain for investors. At the same time, we have noticed that the regulators have done a lot of work on market infrastructure. Therefore, we hope that in the next 10 years, China's ETF market will be able to achieve a four-fold or even higher growth rate like the US market.
Looking at the data, we believe that the path to this direction is very clear, and we are confident in that.
Zhang Kai: First of all, I would like to express my heartfelt thanks to China Fund News for providing you with this platform for exchange and discussion. Here, we look forward to the future development of China's ETF market.
The moderator used a very apt word to describe the development of the ETF market - the wave. Indeed, in just three to five years, China's ETF market has made tremendous progress. I believe that ETFs have had the following impact on the capital markets.
First, it greatly enriches our investment tools. In the past, the asset classes and subdivisions provided by mutual funds were relatively limited, such as equity funds, which were mainly concentrated in the growth style. However, in recent years, ETFs have developed across a wide range of sectors, including equity, commodities, bonds and cross-border, filling the gaps in various asset classes in an all-round way.
Second, it has changed the investment habits of investors in the securities market. In the past, investors chose stocks and bonds, and later turned to fund selection and fund managers. Nowadays, we are more focused on the selection of index targets, the tracking error of funds, and the fee structure. This shows that investors' investment habits are constantly evolving.
Third, it has reshaped the investment philosophy and investment model. In the past, investors focused more on single-asset, single-strategy, swing operations and timing. Now, the concept of multi-asset and multi-strategy allocation has taken root in the minds of investors.
Although China's ETF market is still in a stage of rapid development, we at Yinhua Fund are very honored to be a participant and promoter of the development of the capital market.
Enxuehai: It's a great honor to share my views with you today, I'm Enxuehai from JPMorgan Fund. After listening to your insights on the ETF industry, I couldn't agree more. From a macro perspective, we believe that the development of ETFs in the Chinese market has brought about a more mature, professional and efficient capital market as a whole. This is the biggest change that ETFs have brought about.
At present, the share of passive products in public funds has exceeded half, not only in the net inflow, but also in the stock of more than half. The world's top three asset management institutions are mainly passive products. The development of the world market to this day was not foreseen in advance. Take, for example, the 2008 financial crisis, when a company tried to sell its ETF business, but no one cared. This shows that the market of more than a decade ago was completely unaware of where the industry was headed. Today's China can learn from the development path of the global market and learn from its lessons.
In the Chinese market, as in the global market, ETFs provide investors with more precise, clear and transparent tools. This has led to a change in investor behavior, from trading behavior to allocation behavior. Allocation behavior is a more professional way to invest, which helps the market to develop in a more efficient direction in the long run.
ETFs are instruments that provide access to a wide range of markets, including institutional and individual investors. For example, some investors may not be able to participate in commodities, bonds, or other types of investments for a variety of reasons. However, with ETFs as standardized, transparent, and easy to trade, more people will participate in these asset allocations, and the market will become more widely involved and the market will be much more efficient.
In conclusion, the development of the ETF industry is the cornerstone of the growth and maturity of the entire capital market. This is why we say that the era of ETFs has arrived, and the era of passive product management has finally arrived. This is the main reason why we have firm confidence in the Chinese market, indicating that the development of the Chinese market has entered a new stage. This is also a key factor in J.P. Morgan Asset Management's long-term optimism on the Chinese market.
2. Strategy R&D and iteration will become the core competitiveness of ETFsZhao Xu: Thank you for your wonderful sharing, let us witness the important contributions made by ETFs in the development of China's capital market. Next, I would like to ask Mr. (Wang) Lele and Mr. Ai (Xiaojun), as senior investment management experts in the field of ETFs, how do you view the current development status of the domestic ETF market? Looking forward to the future, what opportunities and challenges will the ETF market face? Wang Lele: In the ETF market, the phenomenon of "a hundred flowers blooming and intensified competition" is becoming more and more obvious, and it can even be said that "involution" is more serious. This state of affairs has its painful and positive implications. The pain lies in the intensification of market competition, but the happiness lies in the fact that this competition has promoted the renewal and iteration of the industry, which is mainly reflected in two aspects.
First of all, the innovation of ETFs as an investment tool is particularly important. Just as automobiles have evolved since their invention more than 100 years ago, the ETF market needs to be constantly innovated and optimized from gasoline vehicles to new energy vehicles. Competition has prompted the ETF industry to work underlying innovation and pursue better quality index and ETF products. For example, broad-based indices can be optimized through new methods such as demining to increase their investment value and attractiveness. As financial practitioners, we have the responsibility and obligation to promote the development of the index, realize the update and iteration of the old index and the research and development of the new index.
Second, full competition brings with it the challenge of capacity improvement. How to create more competitive ETF products is a major issue for fund companies. The improvement of the ability behind the competition is an important opportunity for the development of the ETF industry.
In addition, with the vigorous development of the ETF market, strategy R&D and iteration have become the core of competition. In the past, when investors bought ETF products, they often decided on their own investment strategy. In the future, fund companies need to provide more complete investment education and services around the strategy system to meet the needs of different investors. For example, through strategic frameworks such as large- and small-cap rotation, we provide targeted methodological advice to partners, brokerage investment advisors and institutional clients. In this process, the R&D and iteration of strategies will become the key to the ETF industry to gain a competitive advantage in the new era of involution.
Overall, despite the fierce competition in the ETF market, this competition has also given rise to new development opportunities. Through continuous innovation and optimization, the ETF industry will usher in a broader space for development.
Ai Xiaojun: Mr. Lele's view is very comprehensive, and I would like to talk about the development of domestic ETFs from another perspective.
As we all know, the domestic ETF market has gradually developed and grown on the basis of learning from overseas markets. However, due to the differences between domestic and foreign trading systems and sales systems, the domestic ETF market also faces some unique challenges in the development process. Despite this, after years of hard work, the operating mechanism of the domestic ETF market has been relatively smooth.
However, with the continuous expansion of the market scale, we have also seen some new challenges, such as the application and redemption of the investment link. Under the guidance of the current new fee policy, the competitive landscape and focus of the ETF market in the future may need to be re-examined. Despite the fierce competition in the market, I believe that the industry as a whole can brainstorm ways to address these challenges and come up with practical solutions.
In the past, we have faced many challenges and pressures in terms of investment management. In this regard, the development history and experience of overseas markets may provide useful reference for the domestic ETF market. By learning from the successful practices of overseas markets, we are expected to better cope with the challenges encountered in the A-share market and promote the sustainable and healthy development of the domestic ETF market.
3. Quantitative means help ETF investment to obtain better returnsZhao Xu: Thank you very much for your wonderful sharing. In recent years, in addition to the rapid development of ETFs in the mutual fund industry, quantitative investment has also become the focus of attention in the industry. In today's roundtable forum, we are fortunate to invite several quantitative investment experts, such as Mr. Yunyang and Mr. Zhang Kai. I would like to take this opportunity to ask you how you view the relationship between quantitative investment and ETFs, and in the field of passive investment, can quantitative methods help investors achieve higher returns? Zhao Yunyang: In recent years, the Index and Quantitative Investment Department of Bosera Fund has realized the integration of index and quantitative investment research by continuously innovating ETF products and quantitative strategies. In terms of team management, alpha and beta empower each other, organically combining the beta characterization of ETFs with the quantitative alpha characterization. Since last year, enhanced ETFs, CNI 2000, CSI 2000 and other products have been launched one after another, all of which have adopted quantitative management methods, and quantitative passive empowerment is gradually reflecting its value.
In addition, Bosera Fund focuses on the indexation of active strategies, such as the dividend low-volatility strategy. Portfolio performance is optimized through quantitative means. The company is committed to providing investors with a better ETF asset investment experience through the quantitative system.
Bosera Fund defines its strategy by assets and products, and strives to achieve diversification of all assets, all strategies and all products. At present, Bosera Fund has become one of the public offering management companies with a relatively complete range of products, laying the foundation for the future investment advisory competition and investment advisory ecology.
In terms of quantitative investment, Bosera Fund focuses on low-frequency and fundamental public offering quantitative strategies. Under the newly promulgated "National Nine Articles" framework, the future development space of public offering quantification will be broader. The company's current quantitative strategy covers multiple assets, such as commodities. Bosera Fund has long been deployed in the concept of gold assets, and in recent years, the performance of upstream resource varieties has been excellent, attracting more investors' attention. In addition, the company also focuses on quantitative strategies such as over/under style conversion.
The Index and Quantitative Investment Department of Bosera Fund has rich investment experience and has been engaged in indexation investment since 2003. This year, the company is committed to building the long-term brand value of Bosera CSI 300 Index, Bosera S&P 500 ETF and other products. In the future, Bosera Fund will continue to provide investors with better asset management products and strategic styles through innovative and quantitative strategies to achieve long-term brand value.
Kai Zhang: I think quantification is a comprehensive technical approach that integrates mathematics, statistics and computer science, while ETF investment is the application of quantitative means in index portfolio management. In the pursuit of better returns, I think it can be understood on two levels:
The first level can strive to achieve excess returns on the performance benchmark of passive index investment, such as quantitative multi-factor models for index enhancement. In the past two years, we have made a lot of improvements and efforts in the ETF field, and launched index-enhanced ETFs, such as Yinhua becoming the first batch of issuers of CSI 1000 Index Enhanced ETFs. We also launched the industry's first 800 Enhanced and CSI 2000 Enhanced ETFs.
Another level is to allocate a variety of passive indices to achieve specific investment objectives, such as through the quantitative industry rotation model, and use industry-themed ETFs to strive to achieve the goal of outperforming the index of partial stock mixed funds.
4. Innovation is an important driving force for the development of ETFETFs help investors achieve global asset allocationZhao Xu: Innovation is a very important driving force for the ETF market, and in recent years, we have also seen the emergence of innovative ETF products. Wang Yang is the general manager of Invesco Great Wall ETF and Innovation Investment Department, and has made a lot of explorations in index innovation.
Last year, we visualized its NASDAQ Technology ETF and called it "the corgi", in fact, the "corgi" is entertainment, and it visualized the cold letter of the ETF, and everyone saw the jumping "corgi" and felt that it was around us. It's a perceptible image, not a string of cold numbers. In my opinion, entertainment is also an important part of ETF innovation.
As we all know, the ETF market is highly competitive, and as a Sino-US joint venture, our foreign shareholder, INVESCO, is very concerned about our product innovation. At the beginning of the product line layout, we also had relevant discussions with INVESCO. At that time, INVESCO suggested that we could consider the layout of the Nasdaq 100 Index, because in the overseas market, INVESCO's Nasdaq 100 Fund already has a scale of about 200 billion US dollars, and the product potential is promising.
But at that time, we saw that there were already as many as 12 funds tracking the Nasdaq 100 index in the domestic market. If we choose to lay out the Nasdaq 100 index fund again, it has already ranked 13th in terms of establishment time, and this fund is likely to become a "mini" fund in the future.
In this case, we borrowed the thinking of active investment, made a beta upgrade to the Nasdaq 100 index, and laid out the Nasdaq Technology ETF. The fund was launched on July 19, 2023, and as of April 22, in less than a year, the size of the fund has grown from less than 500 million yuan at the beginning of its establishment to nearly 7 billion yuan. Especially in the past two or three months, the premium rate has been in the leading position in the market for a long time, and investors have been extremely active in trading, and the market recognition is very high. The example of the Nasdaq Technology ETF illustrates that there are many index products that can be upgraded in the Chinese market, which is my understanding of ETF innovation.
The second is strategy, which represents the future development direction of Chinese ETFs. In my opinion, the era of ETF single products is coming to an end, and the era of portfolios will be ushered in next. At present, the homogenization of ETFs is very serious, and fund managers and wealth management institutions need to rely on creating a suitable strategic portfolio for investors to win the market. Last year, Invesco Great Wall launched the "Dividend Low Volatility + Nasdaq Technology" minimalist binary dumbbell strategy, which won a good reputation on the investment advisory side and also gained a large number of loyal fans.
Finally, we also advocate calling for more support policies for ETFs from the perspective of the media, and believe that the innovation of China's ETF market must be a sea of stars, thank you.
Zhao Xu: As the Chief Investment Officer of J.P. Morgan Asset Management China Asset Management and Pension Management, you have extensive experience in multi-asset investment. In your opinion, what role do ETF products play in global asset allocation? For Chinese investors, how should they make good use of cross-border ETFs to optimize their portfolios? ETFs have significant advantages in this regard due to their instrumental attributes.
Secondly, looking at the global mature capital market, taking the US market as an example, it is very difficult for active equity funds to obtain excess returns. If you can get an excess rate of return of 1% or 2%, there is a high probability that you can rank in the top 10% and 20% of the income of the same type of fund. Since it is difficult for active investment to consistently generate excess returns for investors, passive investment is a must for ordinary investors in overseas markets. For domestic investors, index products represented by ETFs are the only way for us to enter the global market, and they are also one of the most core tools.
Third, for us Chinese investors, the vast majority of non-domestic markets are outside our investment capabilities. Even investors in the United States, in most cases, prefer to invest in overseas markets through index products for overseas markets that they are not familiar with. From these perspectives, ETFs with the advantages of simplicity, efficiency, transparency and high liquidity are the best tools for investors to participate in overseas market investment.
In addition, colleagues have just mentioned that actively managed ETFs are a new development direction in the global ETF market, and many overseas institutional managers, including JPMorgan and Fidelity, have achieved great success in this regard in the past few years, and we hope to bring relevant investment tools to investors in the Chinese market in the future.
5. Index investment is a good tool for long-term investment, optimistic about the long-term performance of core assetsZhao Xu: Mr. En's sharing allows us to examine the future development path of China's ETFs from a newer perspective. Generally speaking, index investment is related to long-term investment, and index investment is a very good investment tool under the long-term investment concept. The next question I would like to ask the six guests, if you were asked to choose an ETF to hold for 10 years, which product would you choose? Zhao Yunyang: Looking at the next 5-10 years from now, we should look for the asset allocation with the highest certainty. If the world continues to be in turmoil in the next 10 years, there will be absolutely no problem with gold. In addition, the dividend strategy should always be everyone's bottom position allocation in the next 5-10 years. Wang Lele: What will happen in the next 10 years? With this in mind, I would like to say that all the content I have talked about above is to pave the way for this issue. I believe that it is the dream of all of us here to hit a new high in the stock price, and the stock price trend depends on the valuation and earnings, if the EPS of the basket of stocks behind the ETF can rise from 1 yuan to 10 yuan, the stock price may be able to rise 10 times, of course, the valuation should not be too expensive.
The Value 100 Index is an attempt to find the most profitable stocks in the whole market, and the Value 100 ETF, which tracks the Value 100 Index, was around 3,000 points when it was released in November 2018, and the Shanghai Composite Index is still around 3,000 points, while the Value 100 Index is doing well because of its profit-driven efforts. From the perspective of the next 10 years, the profit-driven investment logic will not change, and the investment strategy represented by the Value 100 Index is the investment direction that combines active and passive.
In the broad-based field, the old broad-based indices have more or less room for improvement, and I am more optimistic about the new broad-based indices represented by the SZSE 50 and CSI A50.
Wang Yang: I am firmly optimistic about the wave of technology represented by AI, which may be equivalent to the Internet wave in 2000. Since this is a revolutionary wave of technology, we believe that this cycle may be calculated in terms of 10 years. Historically, the Nasdaq has outperformed the Nasdaq and Nasdaq Technology has outperformed the Nasdaq, so we believe that the Nasdaq Technology may be a suitable asset for Chinese investors to hold for 10 years. Ai Xiaojun: Standing at the moment, I am very optimistic about the development prospects of the technology field, and I also have confidence in the subdivision of the technology field. If I hold the asset for 10 years, technology assets will account for about 80% of my own investment allocation. With this in mind, I believe that there should be more allocation to Chinese technology assets in the future. Zhang Kai: If you choose an asset that can represent the mainstay of China's economy, I think it may be an A50 ETF fund. En Xuehai: We believe in the long-term investment value of the Chinese market. For more than 20 years, J.P. Morgan Asset Management has released our long-term capital market assumptions every year, and we remain confident in the annualized returns of the Chinese market over the next 10-15 years. If people are inclined to believe such a judgment, they should take a position in China's core assets. In my opinion, the CSI A50 Index should be our core asset. 6. China's capital market and ETF market will continue to achieve each otherZhao Xu: Before ending the first roundtable forum today, I would like to ask you to briefly express your expectations for the development of China's ETF market in one or two sentences, and at the same time talk about what suggestions you have for investors? The "investor-oriented" philosophy continues to empower the ETF industry. Wang Lele: I expect ETFs to make investment easier, and at the same time, I suggest that all kinds of ETF players work together to build a more complete ecosystem. Wang Yang: The road is simple, investment can actually be very happy, thank you. Ai Xiaojun: I hope ETF investors have more sense of gain. Kai Zhang: I hope that investors who participate in ETFs can make money. Enxuehai: All of you are core investors in ETFs, and I hope everyone can provide a healthier environment for the development of ETFs, thank you. Zhao Xu: As a practitioner, I would like to briefly share that now ETF products have made more and more investors more accustomed to observing the market from the perspective of the index, and also used to using ETFs as an allocation tool, and this trend will not change in the future. We also believe that China's capital market and ETF market will continue to thrive each other. Thank you very much for your wonderful speeches, and this is the end of the first roundtable forum today, I hope these discussions can bring inspiration to the future vigorous development of the ETF market, thank you.
Editor: Captain
Review: Xu Wen