A public fund company, established for 16 years, has only one chairman, two general managers and two chief inspectors, which is special in the public offering industry with frequent coach changes, which is HSBC Jinxin.
Wang Dong, who participated in the establishment of hsbc Jinxin Fund and officially became the general manager of the company at the end of 2012, may be the longest-serving general manager of public funds.
Wang Dong, General Manager of HSBC Jinxin Fund
This year marks the twentieth year that Wang Dong has joined the asset management industry, and it is also a year in which the overall scale of the public fund industry and the proportion of the stock market value have reached a new high. According to the data, as of the end of July this year, the industry's asset management scale reached 23.5 trillion yuan, an increase of 1.6 times over the end of 2016. As of the end of June this year, the market value of stocks held by various fund products was 10.8 trillion yuan, accounting for 12.5% of the total market value of A-shares, an increase of 4.3% over the end of 2017.
"In the past three years of the development of the equity market, the public fund has achieved an excess return that outperformed the average market, and really made money for the people, and they also believe that the public offering is a financial tool that benefits the public, and they are willing to hand over the money to our management, and then we put more money into the stock market. Wang Dong told the Chinese reporter of the brokerage, "The development of the stock market feeds back the real economy, and finance as a lever to leverage the development of the entire society, which coincides with our country's second centenary development goal to emphasize 'high quality'." ”
HSBC Jinxin's "Butler Culture"
Referring to HSBC Jinxin's investment research culture, there is a description on the company's official website: although customers ultimately get the performance of the product, what the customer really buys is the "investment research system" of the asset management company. Therefore, HSBC Jinxin Fund has always believed that what it wants to "sell" to customers is not the excellent performance of the past (do  not  sell  performance), but a method of managing assets for clients (sell  how  we  manage  client’s  money）。 Establishing a set of scientific and reasonable investment and research system with competitive advantages is the core competitiveness of asset management institutions.
At HSBC Jinxin, each fund issued by the company has a clear product positioning, maintains the name, performance benchmark and main investment direction in the investment process, and firmly adheres to the investment style without drifting, so that the products bought by customers are always consistent with the expected investment objectives.
This is also the embodiment of HSBC Jinxin's advocacy of the "three cans" concept - the pursuit of performance "explainable, replicable and predictable". Explainable, is to be able to clearly explain the source of excess returns obtained by the fund, and the source is true and reliable; replicable refers to the fund manager to obtain excess returns without relying on luck, but with specific investment strategies and process guarantees; it is expected that all product risks and return characteristics are clear, allowing investors to relatively simply establish reasonable expectations for the performance of the fund.
The 2020 all-market stock base champion Hualuo HSBC Jinxin, the hsbc Jinxin low-carbon pioneer managed by the new generation of fund manager Lu Bin, won the title of equity fund of the year with an annual return of 134.41%. In any year, fund managers can stand out from thousands of people and thousands of products and be elected as champions, all of which are the products of time, location, people and people, and although there is an element of luck, there is also an inevitable accident.
Wang Dong told reporters that in recent years, HSBC Jinxin has maintained its characteristics in investment, and the investment research methodology is being inherited, so it can cultivate generations of excellent fund managers, and Lu Bin is a model of it. His internship was at HSBC Jinxin, from a researcher to a fund manager, the company provided a good soil, including the right investment research culture, a relatively simple working environment, and he himself is very diligent, which is the result of the mutual achievements of the company and individuals.
As a company executive, what are the criteria for selecting talents? Wang Dong said:
First, there is curiosity, can not stand still, especially in the domestic investment, the market is changing rapidly, must have a continuous learning, keep pace with the times mentality;
Second, it can bear hardships and have momentum. Investing is a very challenging job and takes a lot of time, so it must be diligent and diligent;
The third is to have good values, the asset management industry is talking about fiduciary obligations, called butler culture in Europe and the United States, that is to say, the housekeeper should always consider the interests of the master, the fiduciary obligation is higher than the contractual obligation, and always consider the problem from the perspective of the client.
Do subtraction and do the right thing for a long time
Since its inception, the public fund industry has standardized the infrastructure construction of the whole industry in the form of the Interim Measures and the subsequent Fund Law, and has continuously improved in the process of development, drawing on successful overseas experience.
In terms of product types, the fund industry started from stock funds, but due to the large fluctuations in the domestic market, short bulls and bears, investors often can't make money, so that the industry gradually deviates from the original intention, developing currency, capital preservation and even graded funds, at its peak, monetary funds once occupied more than 60% of the scale of the public offering industry, and the market value of public stocks was only 3% at the lowest.
Wang Dong concluded that in the past 20 years, the proportion of equity investment in the public fund industry has dropped from more than 70% at the earliest to 20%, and then bottomed out, the current equity scale is about 40%, and the public fund as a professional institutional investor, long-term investment, value investment concept is also driving the A-share market.
In the 16 years of development of HSBC Jinxin, it has never been involved in the business of grading, capital preservation, special fixed increase and fund subsidiaries, but from the beginning of the company, it has taken active equity as the main direction of the company, and Wang Dong, as the company's management, how to maintain concentration and not follow the tide?
Wang Dong explained that the determination first comes from the support of shareholders, HSBC Jinxin as a joint venture company, Shanxi Trust and HSBC Global Investment Management requirements for the company is "long-term to do the right thing", which in itself is a great support. Looking at the entire industry, HSBC Jinxin has only had one chairman and two general managers in the 16 years since its establishment, which reflects the support of shareholders.
In the face of the so-called "innovative" business of that year, Wang Dong pointed out that when the company pushes any business, it must first ask itself, can it do a good job? If not, the market will not do it no matter how hot it is. On the other hand, it is also necessary to ask whether it is beneficial to the long-term interests of the customer and help the customer overcome the speculative mentality.
"For the inclusive product of public funds, facing ordinary people, we should not blindly sacrifice liquidity and should not arbitrarily increase leverage." For example, the graded fund, for the inferior level, its leverage is diluted when the market is good, and it is increased when the market falls sharply, and our goal of protecting the interests of customers is completely opposite, so we will not do it; for example, the capital protection fund, aiming at the customer's risk-averse mentality, but the real cost of capital protection is very high, such as banks need hundreds of billions of capital to support, but our asset management industry is not an industry that operates with capital, we are a service industry, and the risk is actually a customer. It's hard to commit to capital preservation. ”
Wang Dong believes that investment is a journey without an end, and the goal of creating benefits for customers has no end. For the past 16 years, HSBC Jinxin has insisted on doing the right thing for a long time, more about subtraction, and then increasing its energy to do the right thing and do it well.
Make HSBC Jinxin a respected company and prove the value of the company with the value created for customers. At a time when the equity market and the public offering industry are full of vitality, Wang Dong hopes to continue to make a difference, and on the basis of continuously serving the holders, he will lead the company to continue to grow bigger and stronger next year. In the two paths of the large and comprehensive "fund supermarket" and the small and beautiful "boutique", HSBC Jinxin will combine its own resource endowments to become a "boutique", exerting its advantages in active rights, cross-border business, future FOF and pension target products, avoiding people following the clouds and blindly chasing scale, which is Wang Dong's overall positioning of HSBC Jinxin.
The following is a partial transcript of the conversation between the Chinese reporter of the securities company and Wang Dong, general manager of HSBC Jinxin:
Brokerage China Reporter: You have been associated with the asset management industry for more than 20 years, as an industry manager, how do you view the changes in the public fund industry over the past 20 years?
Wang Dong: I joined the asset management industry in 2001, and this year is exactly 20 years. In the past 20 years, the overall development of the public fund industry is still very good, because the initial positioning of the entire industry is very standardized, the Interim Measures and the subsequent Fund Law have standardized the infrastructure construction of the entire industry in the form of laws and regulations, and the industry has also continuously absorbed some successful experiences from overseas in the process of development.
Of course, the development goal at the bottom of the fund industry is to create value for customers, which is closely related to the entire A-share market. Therefore, the fund industry initially began to ferment from stock funds, but due to the large fluctuations in the domestic stock market, the bear is long and short, customers often do not make money, so that everyone has done some business that deviates from the original intention, such as monetary funds, which once accounted for more than 60% of the entire public fund management scale, and the stock market value of public funds accounted for only about 3% of A shares.
But with the development of the equity market in the past three years, we have made excess returns that outperform the market average, really made money for the people, and they are more convinced that the public fund is indeed a financial tool for the benefit of the public, willing to hand over the money to us to manage, and then we put more money into the stock market, and our long-term investment, value investment concept is also very beneficial to the stable development of the stock market, which is actually a positive cycle.
Therefore, we can see that the proportion of equity investment in public funds has dropped from the earliest 70% or 80% to 20% or 30%, and now it has bottomed out, accounting for about 40%. Our investment philosophy and investment logic as a professional investor are also driving the stock market in a positive direction, and this round of structural bull market in A shares has gone for nearly 3 years since 2019.
In such a positive cycle, many problems have also been resolved. For example, in the past few years, the problem of funds making money but not making money is serious, because some fund companies will issue products at high points due to scale pressure, resulting in basic people buying at high points and throwing at low points, and the investment experience is very poor; but with the strengthening of the market in the past two years, and the entire fund industry continues to provide investors with the popularization of investment knowledge, customers are willing to hold longer, we can also create long-term returns for customers, and the gap between customer expectations and their investment returns is narrowing more and more.
Zooming in to the perspective of the whole society, the development of the stock market can also feed back the real economy, and finance is used as a lever to leverage the development of the entire society, which coincides with our second 100 development goals that emphasize "quality".
Brokerage China Reporter: As we all know, last year, Lu Bin of HSBC Jinxin became the champion of the whole market equity fund, do you think this is accidental or inevitable?
Wang Dong: This question is more philosophical, on the one hand, to get the annual equity fund championship is still very accidental, because the competition is very strong, from thousands of people to stand out from the need for a lot of luck components; but on the other hand, there is actually a necessity in the accident, over the years, HSBC Jinxin in the active equity investment has always had its own characteristics, we are basically independent training of fund managers, we have a set of their own methodology at the company level in the inheritance, so there can be generation after generation of excellent fund managers emerging.
It can be said that the company provides a relatively good soil, such as the correct investment research culture, simple working environment, but the investment is not ABC, the investment process is full of uncertainty, whether it can stand out or rely on the time and place. Lu Bin is an example of our independent training of fund managers, he has been in HSBC Jinxin since his internship, all the way from a researcher to a fund manager, and he is also very self-motivated, which is the result of mutual achievements between the company and individuals.
Brokerage China Reporter: Can you introduce how HSBC Jinxin can build an investment research system, and how can the new generation of fund managers emerge?
Wang Dong: First of all, we must admit that overseas advanced experience is very valuable, for example, investment is actually invested in the value generated by your investment target; but on the other hand, the domestic market and the overseas market are very different, and we also need to do some localization transformation. So we hope that there can be a set of processes to achieve "three cans".
First, it is explainable, whether it is the success or failure of the past, it must be explainable, so as to accumulate the wisdom and experience of many people;
The second is reproducibility, after being explainable, the logic of success should also be reproducible in order to continue success;
The third is to be expected, which does not refer to how many points of income are expected, but to what extent we can do it according to this process, there will be no black-and-white difference.
Now our entire investment research team is about 50 people, of which researchers we may be more and more willing to recruit some experienced, but fund managers we are more willing to cultivate independently.
There's a very good book about British butler culture, called "The Long Day Is Near," or you can go see Downton Abbey, and every time a new employee is trained, I'll tell them what a fiduciary obligation is and what our industry is all about. In our industry, money is important, but money is certainly not the only one.
Brokerage China Reporter: Overseas business is also a section that HSBC Jinxin attaches great importance to, what is the current progress in the development of overseas business? How will it be laid out in the future?
Wang Dong: Our overseas business has a lot to do with our joint venture status, there are some innate advantages, of course, from a higher point of view, China's large economic volume and development speed, it is indeed very worthy of overseas investors to do the allocation.
In 2005, HSBC Asset Management obtained QFII qualification and issued the first product listed on the Hong Kong Stock Exchange to invest in A-shares, HSBC Jinxin is an investment consultant, and overseas business began at this time.
For example, since 2014, we have organized some overseas institutional investors to visit China every year, and I will personally take them to various places to feel the development of China, Beijing, Taiyuan, Chengdu, Shenzhen, Hangzhou, every year there is such an event. From an economic point of view, this activity is quite expensive, but its significance is not how much business it ends up in, but to let overseas investors feel China first-hand.
Overall, our international business has been increasing, and now it is almost 4 billion yuan in size, and it is all equity assets.
In addition, we are also applying for QDLP business qualifications this year, hoping to lead domestic customers to go out and introduce overseas alternative investment products. It took us a year to prepare this application and recently submitted it.
We often say that the industry should have differentiated competition, where the differentiation is, the resource endowment of shareholders is always an important point.
We will cooperate with overseas shareholders in some research aspects, introduce successful overseas investment strategies and management experience and make localization improvements, and provide investment advisory services for overseas partners. For example, we have a rare 3A rating monetary fund in China, mainly for multinational companies and other institutional investors, and there are currently almost one or two tens of billions of dollars.
Brokerage China Reporter: In the future, in terms of innovative business, what is HSBC Jinxin's plan?
Wang Dong: Our industry depends on investment-driven, in the construction of investment capacity we are still more cautious, the future will mainly do the fund in the fund (FOF) investment capacity building, has now done a lot of preparations, although it may be slower, but can not make customers experimental products.
Doing FOF is equivalent to a mirror process, because to select funds, select fund managers, we still have a lot of experience in talent training, investment research, we know what a good fund manager should be, we hope that through FOF the best fund managers in the market are selected, to give customers the best things.
Then, we also plan to do pension target products, in this regard we have accumulated some operational experience. Because HSBC Jinxin once issued the first life cycle fund in China in 2006, it completed a 10-year investment cycle in 2016, experienced two bull-bear conversions, and finally had an annualized yield of 10.7%, and customers are still very satisfied.
Brokerage China Reporter: As the head of a Sino-foreign joint venture fund company, how do you think about overseas asset management institutions increasing the public fund business?
Wang Dong: We are very welcome, the more institutions involved, the more different people's playing style, the higher the efficiency of the financial market.
But on the other hand, for wholly foreign-owned fund companies, they also need a "grounded" process, such as how to deal with major domestic channels, how to understand the characteristics and needs of domestic investors, etc. There are still some information barriers at home and abroad. We have faced these problems before, and fortunately the shareholders have more trust and support.
For these overseas large asset management institutions, the successful experience of the past few hundred years is both an advantage and a burden, and if the overseas experience is dogmatically copied from Home, it will definitely take some detours.
Brokerage China Reporter: In the next 3-5 years of the industry, what kind of company do you want HSBC Jinxin to become, and what is its industry status?
Wang Dong: We want to be a respected company and prove our value with the value created for our customers. For example, our long-term performance has always been good, we will not issue products at a high level to circle the customer's money, we hope to really make money for customers.
Second, with the support of such a good equity market, we still have to make a difference, and our strategic goal is to go in two steps, the first step is to cross the hundred billion, and the second step is to double again. The domestic market has always been volatile, and it is rare that this round of market has gone a long way.
Fund companies have two development paths, one is a large and complete fund supermarket, one is a small and beautiful boutique, in the middle of the high or low company will be very sad.
Our goal is to make a boutique, and China's economy is large enough to support the boutique route. We must analyze our own resource endowments, do some of our own advantages in the business, such as active rights, cross-border business, and then in the future, foF, pension target products to do a good job, rather than blindly following the trend, blindly chasing the scale, that will eventually be eliminated because there is no core competitiveness.
![Artist Wang Dong Yachang Auction Record Sold Works - "Ideographic Calligraphy"[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)