Macro-Finance Salon (No.123): Analysis and Outlook on the Development of Asset Management Industry

Macro-Finance Salon (No.123) was held on the afternoon of June 18 at Mingde Building of RUC. Mr. Song Yongming, deputy general manager of Minsheng Royal Fund Management co., LTD was invited to be the keynote speaker, and gave a speech titled “Analysis and Outlook on the Development of Asset Management Industry”. Participants include IMI research fellows Jiang Bo and Yang Feng, etc. The Salon was chaired by Mr. Xu Yisheng, IMI senior research fellow and chairman of board, China Soft Capital. Mr. Song Yongming’s speech consists of four parts: overview of asset management industry, development status of asset management industry, regulation trend, and mutual funds. From the practical point of view, the current asset management industry tends to be an independent financial field. Song Yongming believes that the transformation of economic development mode has laid an important foundation for asset management industry. Generally, the development stages of an enterprise include start-up, growth, maturity, transformation and problem solving. In the past, growing and mature enterprises were the main entities of market financing, and indirect way of financing such as loans were the main tools. In the future, however, financing entities will shift to “full cycle” as mass entrepreneurship, mass innovation and industrial restructuring happen. Through comparative analysis, the differences between western countries and China in terms of investors in asset management products determine that there are huge differences in business models and even the capital market of the two sides. Western investors are mainly people with high net worth and various insurance funds. Their relatively high risk-taking capacity can help to develop net worth products. Chinese investors, however, are mainly individuals, banks and other financial institutions, whose risk-taking capacity is quite low. In addition, the stable investment of people with high net worth and insurance funds have laid foundation for the sustained market stability, while markets with ordinary individuals as the main investment entities are more likely to experience severe fluctuations.

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