Wang Qian, President of Qingyin Wealth Management: Create a model of "small and beautiful" bank wealth management company

In the large asset management blue ocean market, we must not only raise the sails, but also sail out of the route of differentiated development. On November 19, 2020, the first city commercial bank wealth management company north of the Yangtze River, Qingyin Wealth Management, was officially opened. This is a rather unique bank wealth management company: its parent bank's asset size is the only one of the approved wealth management companies below one trillion yuan, and the proportion of net worth products is close to 80% when it applies for establishment, and in 2014, it began to dabble in the current hot cross-border investment...

From the very beginning, Qingyin Wealth Management has clearly defined its own course - "small and beautiful". A few days ago, Wang Qian, president of Qingyin Wealth Management, said in an exclusive interview with a reporter from China Securities News that high professionalism, cleanliness and compliance are the cornerstones of the development of Qingyin Wealth Management; seizing opportunities, using and expanding its own advantages to provide professional services for investors is the "magic weapon" of Qingyin Wealth Management.

● Ye Siqi, a reporter of this newspaper

Multi-faceted layout of net worth transformation

Compared with other urban commercial banks that have been approved to establish wealth management companies, the asset scale of Bank of Qingdao is relatively small, and when it was approved by the Banking and Insurance Regulatory Commission in February last year, its asset size was still about 380 billion yuan, while the assets of urban commercial banks such as Bank of Hangzhou, Bank of Ningbo and Huishang Bank were already more than one trillion yuan.

Why did Qingyin Wealth Management, which has a small asset scale, stand out and be approved to prepare and open? Wang Qian said the secret: high professionalism, cleanliness and compliance.

"We started the transformation of net worth very early, and when we first applied to establish a wealth management company, the proportion of net worth products was close to 80%, and as of now, this proportion is more than 95%." Wang Qian introduced that the layout of the transformation of the net worth of Qingdao Wealth Management was early, which was reflected in many aspects: in terms of staffing, as early as 2016, a large proportion of the team responsible for asset management of Bank of Qingdao came from market-oriented institutions, including public funds, securities companies, trusts, investment departments of bank headquarters, and the four major accounting firms, etc., with the ability of typical asset management institutions to manage net worth products; in terms of system layout, after the release of the draft for comments on new asset management regulations, Bank of Qingdao began to build a valuation system and asset management system for the first time. Subsequently, it was completed and put into use, and the net worth products were issued before the official release of the new asset management regulations.

In the eyes of industry insiders, these pre-positioned work has been highly recognized by the market and regulatory authorities, which is the prerequisite factor for the smooth approval of Qingyin Wealth Management.

Of course, starting early does not mean smooth sailing, and there is pressure to rectify assets and cash management products such as long-term non-standard assets in the process of transformation of Qingyin wealth management. In this regard, Qingyin Wealth Management is very confident. For long-term non-standard assets, with the passage of time, on the one hand, the remaining term of assets is gradually shortened, on the other hand, the quality of non-standard assets is relatively good, and there is no pressure on bad resolution. As Wang Qian said in an interview: "In fact, the proportion of non-standard investments that need to be withdrawn early after a long period of time is already very small. ”

As for cash management products, as early as the promulgation of the draft for comments, Qingyin Wealth Management has carried out rectification in accordance with the direction of regulatory requirements, including reducing investment duration, reducing concentration, improving investment ratings, etc., and building a suitably structured team to formulate reasonable product management measures and guidelines.

Firmly grasp the two major investment outlets of pension and cross-border investment

For the development of wealth management companies, banks must accelerate their transformation to meet regulatory requirements, and on the other hand, they must seize new opportunities. Pension finance and cross-border investment are the two major "outlets" at present.

Wang Qian told China Securities News that for bank wealth management companies, pension finance has a lot of space. Bank wealth management companies are good at doing large-scale asset allocation and timing for customers, and the investment direction of pension wealth management products is fully in line with the field that wealth management companies are good at. However, the bank wealth management force pension wealth management market, part of the work is still in a relatively early state, she called on the bank wealth management companies should have a fair competition opportunity relative to other types of asset management institutions, "hope that the regulatory authorities can start as soon as possible for professional investment capabilities, excellent risk control, strong product design capabilities of the wealth management companies issued licenses."

How should bank wealth management companies practice their internal skills? In Wang Qian's view, on the one hand, bank wealth management companies should first lay out long-term products, let customers adapt to the new product form, and actively exert their own good bond investment, non-standard debt investment, etc.; on the other hand, they need to deeply explore the direction that is unique to the license of the wealth management company and can enhance the income of pension wealth management products, including: actively laying out private equity first-class equity investment, research and exploration of alternative investment, such as Reits, real estate projects, antiques, jewelry, calligraphy and painting, etc.

In terms of cross-border investment, Qingyin Wealth Management began to dabble in as early as 2014. Wang Qian revealed that at present, the scale of cooperation between Qingyin Wealth Management and QDII managers exceeds 10 billion yuan, accounting for the forefront of the industry, "Cross-border investment has made a significant contribution to the increase in income. ”

It is worth mentioning that Wang Qian herself has worked for Wall Street institutions for a long time, engaged in portfolio management at Goldman Sachs, and has rich experience in asset allocation, portfolio hedging and risk management; and has also engaged in brokerage business with large hedge funds and asset management companies in Credit Suisse Group. Her familiarity with global asset allocation and trading has given Qingyin Wealth Management a natural endowment to participate more in cross-border products and investments.

"At present, there are two directions for cross-border wealth management, overseas customers buy domestic wealth management and domestic customers buy overseas wealth management, both of which we can actively participate in." In this regard, Wang Qian is quite confident that for overseas customers to purchase domestic wealth management products, Qingyin Wealth Management has advantages in the stability and richness of product income; for domestic customers to buy overseas wealth management, Qingyin Wealth Management is also actively laying out business in customer service.

Bullish on structural opportunities in the stock market

The investment layout of bank wealth management companies is inseparable from the outlook of the market. "The inflection point is approaching." Wang Qian summed up the judgment of the market trend in the next period of time in six words.

In terms of the bond market, it is expected that the US Treasury yield will rise by a large margin or a steep situation. As the Chinese market becomes more open, this is bound to have a greater impact on China's interest rate trend and bond market than ever before. Wang Qian believes that the trend of risk-free interest rates in the Chinese market is a high-probability event. Interest rates on government bonds, local bonds and policy bank financial bonds, which represent risk-free interest rates, are not expected to continue to decline, but rather to rise. "It's just a matter of time, China's bond market has been slow bulls and bears." Wang Qian explained that although from a macro point of view, in the long run, the logic of the decline of the interest rate center remains unchanged, but this is not necessarily the main logic of market investment in the next few years, supply and demand, capital and policy and other factors are very important.

In terms of the stock market, Wang Qian believes that the current valuation of the US stock market is too high, and then affected by the sharp expansion of credit spreads and the rise of risk-free interest rates, although the fundamentals of US stocks are still optimistic, corporate performance is supported, but still faces the risk of retracement. In China's stock market, the trend of resuming work and production, demand recovery, and export recovery can be expected, and the upgrading of emerging industries and manufacturing industries has attracted attention. Since credit spreads have not widened significantly, money will still favor the stock market. Over time, if U.S. stocks retrace, the equity portion of global funds will gradually move to emerging markets, and China is an increasingly popular choice. As the "congestion" of China's stock market increases, hugging will become a behavioral trend, but the market will continue to reshuffle. China's capital market infrastructure is gradually improving, in the long run, many A-share industries are not highly valued, there is further upside.

"Overall, the risks of the bond market are greater than the returns, and the structural opportunities in the stock market are always there." Wang Qian concluded.

This article originated from China Securities News