How to promote all-round transformation and promote the all-round development of banks

Facing the challenge of traditional business model and growth mode, I think it will be an important direction for the transformation of China's banking industry to actively promote comprehensive banking operations. Among them, developing all kinds of asset management business is an important part of the bank's comprehensive management strategy.

First, further promote the development of public offering business of fund management companies. In 2005, domestic commercial banks were allowed to initiate the establishment of joint venture fund management companies, which took an important step in the comprehensive operation of the banking industry. ICBC Credit Suisse is one of the first three pilot banks to be fund management companies. After more than two years of rapid development, the scale of fund management has reached more than 50 billion, ranking among the top ten fund companies in China and becoming an important force in the capital market.

Secondly, vigorously develop investment banking businesses such as private equity funds and corporate wealth management, and promote the innovation of corresponding derivative products. At present, the scale of global private equity funds is very large, and almost all international financial companies have their own private equity funds. In 2006, the total value of global M&A transactions was $3.79 trillion, of which 20% was dominated by private equity funds. In 2006, five of the top ten M&A cases in the United States were handled by private equity funds. Many mergers and acquisitions in China are completed through direct investment, and international investment can also be made through private equity funds in the future. The existing problems are: on the one hand, there are no very good laws and regulations for private equity funds, including how the banking industry engages in private equity fund business is not clear enough; On the other hand, the liquidity of the whole society is relatively surplus, but at the same time, the capital of enterprises is seriously insufficient, which not only capitalizes part of the loans of banks, but also makes a large number of domestic high-quality projects introduce international private equity funds. This has led to two consequences: first, it is difficult for domestic financial institutions to share the excess profits brought by the rapid economic development in China; second, it has further aggravated the excess liquidity in China. Therefore, we suggest that commercial banks gradually expand the business scope of investment banks, steadily promote the private equity fund business of financial institutions in China, and effectively alleviate the above contradictions.

Corporate finance is an important part of asset management business, and it is also an important content for commercial banks to carry out investment banking business at present. From our practice, commercial banks actually have many products that can be made into wealth management products. Credit asset securitization is a potential product. I think there will be hundreds of billions, trillions or even bigger markets in the future. A large number of credit assets of banks can be sold to investors who are willing to take higher risks and obtain higher returns through securitization. In addition, there are "trust plus wealth management" products, banks set up special asset management plans, and enterprises and individuals with strong funds can directly provide funds to enterprises in need through the trust platform. Of course, such products need product risk isolation and credit enhancement, and trust companies need to undertake and manage more asset-backed securities and asset management plans.

In recent years, we have developed more and more wealth management products independently. In addition to all kinds of fixed-income products and credit asset securitization products, we will also include all kinds of derivatives in the future, such as some derivatives based on credit fixed-income products, portfolio products and some more promising derivatives of interest rates and exchange rates.

The third is to promote the innovative development of private banks and personal asset management business. Private banking is an important carrier for commercial banks to provide asset management services for wealthy individuals. According to Merrill Lynch's survey of China's private wealth, there are 250,000 to 500,000 individuals with net assets exceeding $6,543,800+0,000. China Commercial Bank 1 10,000 USD net worth has a small number of customers. The reason is that the development of private banks has high requirements for services, channels and products. In Asia, especially in China, private banking customers mainly need products linked to the capital market. If we want to expand this business, we may need to be able to directly invest in China stock market, Hongkong stock market and even global stock market, which requires our excellent professional team to provide investment advice and perfect product line. At present, we have planned to actively try to expand private banking business and promote the development of high-end personal asset management business.

Fourth, continue to expand and improve asset custody services. Asset custody is an important service link of asset management business. With the continuous expansion of asset management scale of fund companies, commercial banks, investment banks and other institutions, asset custody business has also developed rapidly. After merging with Mellon Bank, the largest asset custody bank in the world, the total assets under custody of new york Bank reached 18 trillion US dollars, and asset custody became its core business. With the rapid development of asset management business such as funds in China, the asset custody business of banks has also increased correspondingly, but the absolute scale is still small compared with that of foreign countries. China Industrial and Commercial Bank is the largest asset custody bank in China, with assets under custody of 1.24 trillion. This year, the assets under custody increased by 776.7 billion, with a growth rate of 1.68%. It is hoped that with the rapid development of asset management business in China, the scale of entrusted assets of ICBC can quickly narrow the gap with international advanced banks.

In a word, asset management is a very important field for the future development of commercial banks. I have two hopes: first, I hope to increase the support for the comprehensive operation of commercial banks at the legal level; Second, I hope that the space for banks to develop asset management business in securities, investment banks, equity investment funds, trust companies and other fields can be further expanded, and the liquidity of China's financial system can be alleviated by accelerating the development of asset management, thus enhancing the overall competitiveness of China's commercial banks.