China Fund News reporter Liu Ming
On April 23, the 20th Anniversary Forum of "ETF New Wave of Investment" hosted by China Fund News was held in Shenzhen. At the forum, Zheng Xia, deputy general manager of Ping An Securities, gave a keynote speech on the topic of "Set Sail and Take Root - ETF Leads a New Era of Brokerage Wealth Management".
Photo of Zheng Xia's speech
Zheng Xia said that with the accumulation of wealth of mainland residents, the demand for wealth management of residents has also continued to grow, which has put forward higher requirements for the service capabilities of brokerages, promoted wealth management into a new era of "customer-centric" buy-side investment advisory services, and provided customers with professional and effective services through asset allocation. In this process, ETFs, as an asset allocation tool with unique advantages, have brought new opportunities for the transformation and upgrading of wealth management. Zheng Xia pointed out that the industry should focus on the needs of investors, jointly build an ETF ecosystem, form a multi-party linkage service closed loop, promote the high-quality development of the industry, and enhance investors' sense of gain.
It is reported that Ping An Securities will join hands with China Fund News to hold ETF competitions with 16 fund companies this year, among which the "2024 ETF Summer Summit" will officially start in early June.
Brokerage wealth management is moving towards the era of buy-side investment advisory services
As the wealth of mainland residents continues to grow, more funds have flowed to standard investment products, and the capital market and public and private equity funds have also become beneficiaries. At present, the scale of public funds has exceeded 28 trillion yuan, and the number of products has exceeded 10,000, of which the scale of ETFs has exceeded 2 trillion yuan, and the number has exceeded 900. The scale of private equity funds also exceeds 20 trillion yuan (including equity private placement), and the number of products is nearly 100,000.
The advantage of the standard product is that the underlying assets are clear, but the number is large, the form is similar, and the capital market is volatile, and it is not easy for investors to choose, which requires the brokerage to have professional wealth management capabilities.
From the previous stock trading intermediary to the addition of product recommendation services, it is now necessary to move towards a "customer-centric" buy-side investment advisory service, focusing on customer needs, truly giving asset allocation service suggestions to customers, and working in the same direction with customers to form a community of interests.
The unique advantages and market opportunities of ETFs
In the new era of buy-side investment advisory services, the unique advantages of ETFs have been gradually reflected. Zheng Xia pointed out that ETFs, as passive investment tools, have the characteristics of low fees and good liquidity, and have the opportunity to obtain β returns from the underlying assets. Compared with investing in a single stock, ETFs are less risky, and investors have the opportunity to enjoy the dividends of China's economic growth. In addition, ETFs can provide a portfolio of assets with reduced volatility, diversification and allocation through diversified products, forming a new wealth service model. More importantly, the underlying assets of ETFs are clear, which can easily and clearly convey the risk-return characteristics of tool products to investors, which is easy for investors to understand and accept, and is a good variety and tool to reduce the difficulty of wealth management services.
Zheng Xia believes that the development of ETFs not only provides new investment channels for investors, but also brings new opportunities for the wealth management business of brokerages. In the context of wealth management transformation, ETFs, as an asset allocation tool, can help brokerages better meet the needs of customers' wealth management and improve the professionalism of services.
Because of these unique advantages, the ETF market in China, although it started late, has developed strongly in recent years and has become a force to be reckoned with in the wealth management field. At present, the variety of domestic ETFs is becoming more and more abundant, the coverage of large types of assets is becoming more and more complete, the overall scale is increasing rapidly, and the ETF market is becoming increasingly active and ready to go.
Diversified hierarchical investment education and professional investment advisory services
Drive healthy business development
Zheng Xia shared some of Ping An Securities' explorations and practices in the development of ETF business.
In terms of investor education, Ping An Securities enhances customers' awareness of ETFs through diversified and immersive investment education methods. The core approach is to focus on customer needs and work with fund companies to do a good job in customer hierarchical investment education. For novice, transactional, and allocation customers, we will launch investment education activities suitable for them to meet the needs of different customers for knowledge introduction, practical experience and in-depth understanding of investment value, and reach them through online and offline linkage. On the basis of providing diversified investment and education services, Ping An Securities has also created a unique ETF real competition, positioning the competition as a centralized scenario that can help customers build their minds and cultivate cognition, forming a highly active scene that customers like, and adhering to the long-term concept of the competition system, customers can participate in the competition at any time to help customers continue to improve.
In terms of investment advisory services, Ping An Securities continued to strengthen its investment advisory service capabilities. Ping An Securities emphasized that investment advisory services are the core link connecting standardized products and customer benefit experience, and are also the core competitiveness of the buyer's investment advisory service era. From team concept to action training, from investment research system to ETF boutique pool construction, as well as investment advisory portfolio services, Ping An Securities has consciously tilted towards the ETF business, and has done a good job in the docking and implementation of professional services in customer operation, improving service capabilities from various aspects, and bringing customers a financial service experience of "worry-free, time-saving and money-saving".
In addition, Ping An Securities has also actively opened up its platform and introduced the professional service capabilities of fund companies to further improve the service effect. Ping An Securities empowers investment advisors with the investment research views and live streaming of content of cooperative fund companies, and incorporates them into a unified product and service system to serve customers, help customers understand the characteristics and advantages of ETFs, and improve investment skills and investment results.
Focus on enhancing investors' sense of gain
Multi-party co-construction of ETF ecosystem
Looking ahead, China's ETF market still has broad room for development. According to the data, at present, the proportion of Chinese ETFs in the public offering scale is only 9%, compared with 22% in overseas benchmarks, and the market value of Chinese equity ETFs in stock market value is 2%, and 13% in overseas benchmarks. There is still a lot of room for growth in China's ETF market.
In order to better promote the high-quality development of the ETF industry, Zheng Xia said that the industry should jointly build an ETF ecosystem based on the needs of investors and form a closed-loop service with multi-party linkage. Among them, fund companies, brokers, third-party platforms and other parties should play their own roles to help ETFs thrive in a benign ecological environment and jointly serve investors.
Zheng Xia emphasized that as a brokerage, it is necessary to give full play to its professional capabilities in reaching customers, asset research, allocation services, etc., so as to truly provide investment advisory services to customers and enhance their sense of gain. In addition to providing professional services to investors, fund companies should also be able to empower the investment advisory team of securities companies to form an effective synergy.
In the future, Ping An Securities will continue to deepen its cooperation with fund companies, strengthen cooperation with third-party platforms under the premise of legal compliance, broaden service channels, meet the diversified investment needs of customers, and work together with everyone to contribute to the high-quality development of the ETF industry.
Editor: Xiao Mo
Review: Chen Mo
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