On August 25, the “2022 Wealth Management Summit: Industry Trends amid the Global Change” and the launch of  the Evaluation Report on China’s Wealth Management Capacity 2022 was held in Beijing. The summit was organized by Xinhuanet and the School of Finance, Renmin University of China (RUC), and co-organized by the International Monetary Institute (IMI) of RUC, the Wealth Management Research Center of RUC, and the Golden Bull Financial Research Center of China Securities Journal. The participants had in-depth exchanges on the features of China’s wealth management industry, how wealth management institutions can build core competitiveness, how to improve investors’ sense of fulfillment and other heated issues in the industry. Tan Songtao, Director of the Wealth Management Research Center of RUC, presided over the summit.

Zhou Hongjun, Member of the Standing Committee of the Party committee, director, and Executive Editor-in-Chief of Xinhuanet Co., Ltd, and Zhuang Yumin, Dean of the School of Finance of RUC and Chiarman of Council of IMI delivered opening remarks.

In the keynote session, Wang Hongzhang, former Chairman of China Construction Bank, pointed out that serving the real economy is the duty of wealth management. Digitalization is the future of the asset management industry, but it’s too early for an all-round digital transformation because it is very different from traditional financial system and the industry lacks relevant experiences, perception, expertise, and data. A “step-by-step” approach can be adopted to first enable simple operational businesses such as channels, transactions and payments, then to build complex systems such as investment research and analysis, risk control and process management, and ultimately to achieve pass-through management with digitalization.

Li Yang, Member of the Academic Committee of CASS and Chairman of Council of National Institution for Finance & Development, noted in a video speech that asset management is an effective mechanism to reduce the proportion of indirect financing. Trust companies should conduct financing businesses as trustees and get revenue from the services they provide rather than from spreads. He suggested securities investment pay special attention to the expansion of equity investment. The industry should consider the reality of economic development to support key areas such as industrial upgrading, green and low-carbon development, medical and healthcare, strategic emerging industries, Guangdong-Hong Kong-Macao Greater Bay Area, and Yangtze River Delta Economic Zone, and promote the virtuous cycle of financial sector and real economy.

Wu Xiaoqiu, former Vice President of RUC and Dean of Academy of China Capital Market of RUC, noted that the “wealth management” of market finance rises with economic development, improved income level, and a robust market economy system. The transition from prioritizing financing to balancing financing and wealth management calls for structural reform and adjustment of the financial sector. He pointed out that based on the changes in demand and supply, the industry should first vigorously develop wealth management institutions, and at the same time, leverage market forces to enhance the competitiveness of China’s financial system, particularly that of wealth management.

The meeting saw the release of the Evaluation Report on China’s Wealth Management Capacity 2022. Song Ke, Deputy Director of IMI gave an overview of the report on the meeting. The report, based on index construction and other measures, provides a comprehensive evaluation of the development of China’s asset management industry and the wealth management capability of institutions, and focuses on the value of wealth management amid market volatility. The report points out that in the first half of 2022, China’s asset management industry is on the rise, with rapid year-on-year growth in various industry indices in the first two quarters and stable momentum. A diverse wealth management distribution landscape has taken shape, led by banks and supplemented by brokers, public funds, and third-party institutions. Institutions complement each other in terms of customer base, channels and technologies to promote the quality growth of wealth management industry.

The industry forum was chaired by Xu Jianjun, director of Golden Bull Financial Research Center of China Securities Journal. Guests from China CITIC Bank, Xingyin Wealth Management, CITIC Securities and ICBC Credit Suisse Asset Management had in-depth discussion on steps to take in wealth management transformation, how financial technology can better serve investors and other hot topics in the industry.