Interview With Wang Dong, General Manager Of HSBC Jinxin Fund: Firmly "Long Term" Concept To Meet Financial Opening Opportunities

2019 was the 154th year when HSBC was founded in mainland China, and it was also the fourteenth year of the establishment of HSBC Jinxin fund. For 14 years, it is not too short to say long, but Wang Dong, general manager of HSBC Jinxin, who has been involved in the creation and growth, seems to represent a kind of insistence and persistence.

"From the moment the company was founded, we used a long-term perspective to conduct operations management and investment research," Wang Dong said.

Wang Dong

How long is the "long term"? Wang Dong believes that it is not one or two months ahead of the performance rankings, nor is it one or two years of high growth. For investors, wealth preservation and value increase is a lifetime matter. It is also true for public funds and other asset management institutions. We should set targets with the same yardstick.

Strengthening the concept of "long-term"

In his exclusive interview, Wang Dong talked about some opinions and insights on the domestic fund industry and capital market, and highlighted several key words, the first of which was "long-term".

As soon as 16 years have not changed the mobile phone number, Wang Dong is now the general manager of the domestic public fund industry, who has been sticking to the same company from the company's preparation. He said frankly that in the 20 years when he was linked to the information management industry, he always recognized and adhered to a concept of long-term responsibility for investors, which is the foundation of public offering funds.

"Investors who hold long-term HSBC Jinxin's fund are basically making money, which proves that our insistence is right", Wang Dong told reporters that asset management institutions must stand in a long-term perspective. At present, a serious constraint on the development of the domestic fund industry is the lack of long-term funds. Most investors tend to invest in the short term.

"Only with the needs of personal pension, our management industry will usher in great development", Wang Dong said in an interview, calling "pension tax preferential policies" and other policy systems to promote. He said that the habit of long-term investment is fundamentally a distortion of human nature, so there must be a system to push forward to help overcome psychological barriers.

On the other hand, the impact of long-term capital injection on the capital market is also positive. Stable funds can endure short-term fluctuations in the market, so that the investment decisions of asset management institutions such as public funds are not easy to change. This is conducive to adhering to the correct value investment and forming a virtuous circle.

As a joint venture fund company, the two shareholders of HSBC Jinxin are Shanxi trust and HSBC Global Investment Management (UK), which accounts for 49% of the total. It has to be said that in the 10 public fund companies with close shareholding by Chinese and foreign shareholders, HSBC Jinxin is a very stable company.

In this regard, Wang Dong said, this is mainly due to the entire company, and the value orientation of shareholders is more consistent, this value orientation is "long-term value creation for investors".

"Foreign shareholders have also provided rich experience for HSBC Jinxin, including long-term investment, long-term vision and the interests of customers," Wang Dong said.

Pay attention to investors' experience

"Overseas information management companies attach more importance to their brands because they feel that they represent their commitment to customers and confidence in long-term value creation. Therefore, when making any important decisions, the first thing to consider is whether it will hurt the customers and whether it will damage their reputation, "Wang Dong said.

He stressed that the asset management industry wants long-term development, so that investors want to invest their spare cash in long-term investment, and the importance of customer experience is the premise. For example, the performance of funds can not be empty, but investors are not making money. Unlike many fund companies, HSBC Jinxin's assessment of fund managers is mainly based on excess earnings, which is to prevent fund managers from pursuing a high yield by betting on one sector, but it hurts the interests of holders and the brand of the company.

Any industry should "do something or not", but in reality, it is often deviated from the initial situation. The public fund also has such a situation. All kinds of innovative businesses have been hot in different market stages, but many of the "ending" is not ideal.

Compared with many fund companies keen to develop product lines, HSBC Jinxin may be an alternative. Since its establishment in the past 15 years, the total number of products has been more than 20, averaging less than two in one year. Wang Dong said he did not feel the pressure and anxiety. "HSBC Jinxin has always insisted on two aspects. One is firmly developing the active management fund. On the other hand, it insists on the" get what you get ", and the more than 20 products are different, and the investment style will not drift. This kind of insistence can directly enable investors to establish reasonable expectations for fund performance relatively, and indirectly, it can better build long-term trust relationship with investors.

Meeting financial opening opportunities

In October 11th this year, the securities and Futures Commission decided to cancel the time limit for foreign capital shares of securities companies and fund management companies in 2021 to 2020. Wang Dong said that the possibility of foreign shareholders holding companies will not be excluded in the future.

For today's big financial markets, he believes that the most direct impact is the influx of pluralistic participants to help change the industry ecosystem. Since this year, the proportion of foreign capital in the A share market has been increasing. This trend is also deeply affecting the investment style of the A share market. Wang Dong said that the diversification of capital sources will positively promote the enhancement of market resilience. At the same time, from the perspective of investment, the underlying assets are becoming more diversified and more dispersed, which will also help to reduce investment risks.

Under the general pattern of financial openness, HSBC Jinxin also attaches more importance to international business development besides providing asset management services to mainland investors. Wang Dong disclosed that the company is concentrating on becoming an institutional Monetary Fund for multinational companies, and relying on the shareholder advantage of HSBC Group to provide services for overseas investors and attract them to invest in A shares. In addition, it also sells overseas HSBC products to the mainland through mutual recognition of funds.