Zhang Fan, General Manager Of Financing Fund: Building Core Competitiveness Of Research And Development To Pursue "Slow Cow Style" Development

Over the past three years, it has been the three year of the financing fund.

In this industry, a rather low-key old public fund company, under the reform of investment and research system, is showing the vitality of growing up again. In the past two years, the securities investment fund's active management ability of stock investment has ranked the forefront of the industry, which has jumped sharply from the end of 2016.

The password for the leap forward comes from the deep plough of the financing fund in the field of equity investment in the past three years.

Zhang Fan, general manager of financing fund

"The core competitiveness of public offering funds lies in equity investment". Zhang Fan, general manager of financing fund, repeatedly mentioned this view to reporters in an exclusive interview with the economic report twenty-first Century.

Equity investment transformation

"Twenty-first Century": what changes have gone through in financing since the general manager of the job financing fund?

Zhang Fan: the financing fund is a very historic company. When I joined the financing fund, it happened to be the 16 year old birthday of the company. This year it is already 18 years old. After joining the financing, I focused my efforts on improving the investment system and marketing system. Frankly speaking, the investment performance in 2016 is not very satisfactory, so the first problem I face is improving the ability to invest and research.

After taking office, I reorganized the entire investment management team, from the internal and external talent selection to equity investment director, research director and other important positions, and set up a special investment department and portfolio investment department.

From the practical results, this series of adjustment effect is very good, and the investment performance has greatly changed. In 2018, the company's equity investment and fixed income investment all set the best level since the company was founded. Among them, the equity investment ability ranks the top 24% in the industry, and the fixed income investment ability ranks the top 17% in the industry.

Twenty-first Century: what is the reason for the rapid improvement of the active management level?

Zhang Fan: the key is to do the basic work well. Investment must not be a bit false. It is meaningless to rely solely on gambling direction and gambling stocks to get short-term results and rush to rank. It is also not consistent with our company's investment philosophy. What we are pursuing is the sustainability, reliability and accumulation of investment income.

In equity investment, we strive to build an integrated platform for investment and research, which really links the investment department and the research department. The integration platform for integration of investment and research is a platform for information and results sharing and communication on the surface, but it is a complete system which includes input control, process management, result oriented and results sharing.

Twenty-first Century: Recently, the policy of approving public offerings has changed, and the approval process of equity products has been significantly increased. How does this affect the layout of future businesses?

Zhang Fan: the core ability of public fund investment is mainly in equity investment and credit debt research investment. We attach great importance to the layout of equity products strategically. We plan to issue a considerable number of equity products every year. On the one hand, we should conform to the industry development orientation. On the other hand, we can also expand the sales channels, while increasing the interaction and cooperation of channels, strengthening the understanding of fund managers to front-line customers, and creating more equity fund products that the holders are satisfied with.

At present, our company's equity fund accounts for 30% of the total scale, which is higher than the average level of 20% of the industry. However, we feel that there will be much room for growth of the equity fund in the future.

Face industry competition directly

Twenty-first Century: how to view the external competition faced by the public offering industry?

Zhang Fan: there must be some pressure. Over the past year, the size of the public fund has fallen by more than 1 billion. Most of these funds have been diverted to the bank's financial products, because the bank's financial sub company is now pushing forward the replacement of Monetary Fund. After that, the size of the IMF will gradually decrease, which is an irresistible trend.

However, after the opening of the banking subsidiary, the scale of bank financing will reach the market. From the source, it will provide incremental. In the field of subdivision, public offerings must use their own advantages to get incremental.

I think the strength of public offerings is concentrated in two aspects. First of all, there is no doubt that it is equity investment. Secondly, on the basis of credit rating, the public offering fund also has its own characteristics. Public offering can play its own expertise in these two aspects, which is also our focus in the future.

Twenty-first Century: for fund companies in the middle and rear reaches, is it difficult to break through under Matthew effect?

Zhang Fan: at present, the overall economic growth shift has entered the stock economic era. Any industry, if you want to bend over to catch up with the head, must have core competence and business characteristics. In fact, the scale of the top 10 companies in the past few years has not increased. The proportion of the top ten fund companies has remained at about 50%. For the latecomers, do not seek the same "big and all" layout as big companies, and have the same characteristics in a subdivision. China's fund industry is only 20 years old now. When we look back in 50 years, there will be many changes in the industry structure.

Embrace financial openness

Twenty-first Century: the extent of China's financial market opening to the outside world, what kind of impact will it have on the Chinese market?

Zhang Fan: the public fund industry should be a relatively open industry in China's financial industry. At present, 44 of the 126 public fund companies are Sino foreign joint ventures. Most of the international asset management giants already have joint venture fund companies in China.

In addition to the joint venture fund company, many international asset management giants including BlackRock and fidelity are still building a sole proprietorship company to seek public offering licences. From this trend, China's financial market will become more open in the future.

According to my personal observation, China's market will attract more and more foreign investment. Prior to our foreign shareholders, Nikko asset issuance investment related products in China market were very popular in Japan, and the total size of the two products exceeded 1 billion US dollars.

Domestic institutions may not be able to adapt to some of the conceptual models of international investment. From the perspective of Chinese institutions investing in overseas markets, there are few successful cases, but there are great opportunities for overseas institutions to invest in China. According to data, since the opening of Shanghai and Hong Kong and Shenzhen and Hong Kong, the top ten heavily loaded stocks have increased by double in the heavily invested stocks invested by the north capital. This shows that overseas investors' ability to discover the value of the Chinese market is much stronger than that of domestic institutions, and there is still a long way to go for the internationalization and globalization of domestic institutions.

Later, if the domestic convenience and transaction efficiency can be improved, the attractiveness of international capital will be even higher. Although the scale of foreign holdings of Chinese stocks has not been much different from that of public offering funds, the actual volume is still small, and the Chinese market needs more institutions to participate.

Twenty-first Century: what positive impact did the foreign shareholders have on the company's development over the past few years?

Zhang Fan: our foreign shareholder, nixing asset, has 60 years' experience in asset management industry. At present, the assets that manage US $about 230000000000 are Japan's second largest Asset Management Co and an earlier overseas asset management institution that has entered the Chinese market. The nixing asset has brought us the world's leading management concept, and has provided rich experience in asset management industry. Since 2007, we have been investing advisors in the Yellow River fund for QFII products of nixing asset. The two sides have high frequency exchange and cooperation mechanism from A share to overseas research and investment field. Foreign investment concepts are more mature, investment methods are more long-term and rational. We are more familiar with the Chinese market, learn from each other and grow together in our work, and also make our investment and research capabilities rapidly improved.