Wealth Management 5th Anniversary: Consolidating Professional Capabilities and Doing a Good Job in "Five Major Articles"

In 2019, the mainland wealth management market ushered in an important milestone: the first batch of wealth management companies were officially established. In the past five years, based on the origin of "entrusted by others and wealth management on behalf of customers", wealth management companies have started from a clean start to a growing scale, and have now become a new force in the high-quality development of wealth management business. As of the end of April 2024, 32 wealth management companies have been approved for establishment, with a product scale of about 28.5 trillion yuan.

As one of the first batch of wealth management companies approved for establishment, Wealth Management officially opened on 4 July 2019. Under the strategic guidance of the Bank of China Group, BOC Wealth Management has actively practiced the political and people's nature of financial work, served the overall situation of the country, vigorously promoted the high-quality development of its own business, continuously enhanced the sense of customer gain, and continuously improved the quality and efficiency of serving the real economy. As of June 2024, Wealth Management has generated over RMB155 billion in revenue for its customers.

Consolidate professional capabilities and practice finance for the people

In the context of the transformation of wealth management products to net worth, since its establishment, BOC Wealth Management has actively implemented the development concept of "people-centered", adhered to the main tone of "stability and progress", and is committed to developing asset management business with Chinese characteristics. In product research and development, investment and research decision-making, asset allocation, risk management and channel expansion, we will continue to improve the company's core competitiveness. Over the past five years, the "Stable Wealth" series of Wealth Management has been awarded the champion of the monthly evaluation of the fixed income category of the Joint Intelligent Appraisal and the quarterly star rating of Puyi Standard. Wealth Management won 34 authoritative awards in the industry, including the "Annual Social Responsibility Wealth Management Company Gold Reputation Award" and the "Premier Wealth Management Company Gold Reputation Award".

In terms of product positioning, BOC Wealth Management continued to strengthen its investment and research capabilities, broaden the allocation of high-quality and stable assets, and balance the income, liquidity and security of wealth management products, so as to meet the core demands of the people in pursuit of stable returns. Since the issuance of the first "Stable Through Train" series of closed-end products on December 17, 2022, as of April 19, 2024, a total of 106 have been established, raising more than 58.5 billion yuan. 67 products have matured, with a performance benchmark compliance rate of nearly 99%, and an average yield of 17BP exceeding the performance benchmark. As of January 11, 2024, there are 21 Wenfu (closed) series products established and existing in 2023, with an average annualized income of 3.14% since its establishment, and an average of 18BP exceeding the lower limit of the performance benchmark.

As a wealth management subsidiary of Bank of China, BOC Wealth Management has always attached great importance to cross-border investment and research capacity building by taking advantage of the Group's leading advantages in international development. Relying on the professional advantages of Bank of China Group in the field of foreign exchange business, Bank of China Wealth Management has built a multi-currency, multi-form and multi-type foreign currency wealth management product system. In March 2024, Bank of China issued its first cross-border RMB public wealth management product in the Greater Bay Area. This product belongs to the wealth management under the sub-brand of "Overseas Preferred High Rated Fixed Income" of Wealth Management, which enriches the "shelf" of cross-border products of Wealth Management.

Since 2023, in accordance with the requirements of the "Eight Insistences" for financial work and the "Five Musts" for economic work, BOC Wealth Management has kept in mind its original mission and stood firmly on the people's position. By strengthening the protection of consumer rights and interests, we will continuously improve the construction of relevant systems and mechanisms, and integrate the concepts and requirements of consumer rights protection into the whole business, all fields and all processes.

Serve the real economy and do a good job in the "five big articles"

Since its establishment five years ago, Wealth Management has always been committed to serving the real economy, contributing to the construction of Chinese-style modernization, and meeting the wealth management needs of the people, and has increased research and allocation in key areas. Continue to increase investment in high-end equipment manufacturing, new energy and other industries related to the modern industrial system; support major national regional strategies such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area; Actively implement the strategic deployment of rural revitalization. In October 2023, BOC Wealth Management cooperated with China Bond Financial Valuation Center Co., Ltd. to release the "China Bond-BOC Wealth Management High-grade Rural Revitalization Bond Index", and designed and launched a wealth management product linked to the China-Wealth Management High-grade Rural Revitalization Bond Index - (Rural Revitalization) Wealth Management-New Town Huiying 368-day Holding Period Fixed Income Enhanced Wealth Management Wealth Management Product, with an annualized return of 4.09% since its establishment.

In 2023, the Central Financial Work Conference clearly stated that it is necessary to do a good job in the "five major articles" of science and technology finance, green finance, inclusive finance, pension finance, and digital finance. Wealth Management actively explores the entry point and focus of the "Five Major Articles", improves the whole process management of product design, investment research, sales and tracking, and creates a thematic wealth management product system focusing on themes such as technology, green, inclusive and pension, and featuring cross-border themes.

In terms of green finance, BOC Wealth Management deeply grasps the opportunities of the country's dual carbon development, participates in green asset investment, and contributes to the development of a green, low-carbon and circular economy. In terms of inclusive finance, we will innovate the inclusive product system, better serve the wealth management needs of county and township residents, serve the goal of common prosperity, build a parity and high-quality inclusive product system and service system, and benefit customers to a greater extent. Since the beginning of this year, the comprehensive investment performance of non-cash products of Bank of China Wealth Management has been 3.89%, and the income for customers in the first quarter has reached 11.5 billion yuan. In terms of pension finance, we will actively serve the construction of the third pillar of pension, optimize the design of pension products, enrich the supply of pension products, and explore and expand the ecosystem of "wealth management + pension". On August 17, 2022, Bank of China Wealth Management's first pension wealth management product was raised ahead of schedule, raising 6 billion yuan. As one of the first batch of pilot institutions for personal pension wealth management business, BOC Wealth Management launched the "Fu" series of personal pension wealth management products in February 2023. Up to now, Bank of China Wealth Management has issued a total of 5 personal pension wealth management products. In terms of digital finance, we actively integrate into the new trend of digital development, help science and technology become self-reliant and self-reliant, continue to promote data governance projects, give full play to the value of data elements, continue to deepen the digital transformation of financial management, and help improve core business capabilities.

Be the "ballast stone" of the financial market

Bank wealth management is the main provider of stable, inclusive and long-term products, which meets the needs of residents for low-risk diversified investment. At the same time, as an important participant in the bond market, bank wealth management actively optimizes the allocation structure and plays the role of market stabilizer, which is the "ballast stone" of the financial market.

Looking back on the five-year journey, Wealth Management has adhered to the people-centered development philosophy, continuously enriched and improved the product system, optimized the investment strategy, met the investment and wealth management needs of customers in a multi-faceted and all-round way, and gradually developed into the backbone of the wealth management industry. According to the data, in April 2024, the scale of Bank of China's wealth management products increased by more than 200 billion yuan.

In order to promote the steady and sustainable development of wealth management business, Wealth Management will enhance the quality and efficiency of comprehensive risk management in strict accordance with regulatory requirements. Establish and improve the risk management system that matches the transformation and development of the wealth management business, continue to improve the risk prevention, early warning and disposal mechanism, deepen the application of risk management in the field of investment management, take into account the overall consideration, improve the refined and intelligent risk management and control methods, and enhance the effectiveness of comprehensive risk management.

In the future, BOC Wealth Management will thoroughly implement the spirit of the Central Financial Work Conference, continuously strengthen its sense of mission and responsibility, and strive to do a good job in five major articles to serve the high-quality development of the economy and society. At the same time, it actively responds to market changes, gives full play to its advantages in cross-border business fields, and makes every effort to serve high-level opening-up. Inject financial momentum into high-quality development.