Wang Dazhi, General Manager Of JP Morgan Fund: The Layout Of Core Assets Together With The World To Do More China

"Foreign shareholders' investment in China is the next 100 years. This is the most important strategy for Morgan management. So if our foreign shareholders get the controlling power, there will be no big change in the operation of Morgan," he said. "We will continue to strengthen our research and development capabilities, develop customer focused products, establish professional customer service and strict risk control." Recently, Wang Dazhi, general manager of JP Morgan fund, told an exclusive interview with the economic news reporters in twenty-first Century.

Wang Dazhi, general manager of JP Morgan Fund

As a benchmark joint venture fund company, it is widely predicted that the company will become the first foreign holding fund company in China.

This market prediction comes from the fact that in August 7th of this year, Morgan Chase's Morgan asset management successfully bid for the 2% stake in Morgan's fund with a reserve price of 241 million yuan. If the deal is successful, Morgan's stake in the company will rise to 51%, and the company will become the first public fund company to be controlled by foreign capital. However, this transaction still needs the approval of the US and China Securities Regulatory Commission before it can take effect.

Layout China

Twenty-first Century: as a benchmarking joint venture fund company, MP may become the first foreign holding fund company in the future, and foreign capital will have greater autonomy. Do you have a forward-looking layout?

Wang Dazhi: foreign shareholders' investment in China is the next 100 years, so we are not in a hurry. "No hurry" is not a matter of doing nothing but a long-term idea and layout. Since this is the most important strategy of Morgan management, if our foreign shareholders get the controlling power, there will be no big change in the operation of Morgan in China. We will continue to work step by step in the light of research capability, customer centered product design, the most professional customer service and the most stringent wind control.

At the same time, when the Chinese market is open, we must have "flexibility" to adapt to the rapid changes in the domestic market and prepare for this. So when opportunity comes, we can seize it immediately. Although we are a joint venture company, we also have a local perspective. We will make greater efforts in this regard.

Twenty-first Century: JP Morgan fund is a joint venture company. As a manager, how do you view the development prospects of foreign holding companies and what advantages do foreign holding companies face? What do you think the result will be when PK is on the same stage with other fund companies?

Wang Dazhi: our advantage is that in China, Shang Morgan is a company that has made solid investments in China for 15 years. At the same time, overseas, the Morgan group is also strong, with many strategies and many domestic investment methods.

As head of Morgan, I have to combine two platforms and two good things to make good things, good strategies and good wind control play a role. We hope that the products that are issued and introduced to investors are top-notch in strategy, both in excess of revenue from active management, and at the same time, wind control is also the best.

For the same PK as domestic fund companies, I think there must be competition in the industry, but the fund industry has a large market and can accommodate many different styles of fund companies. This pie can also become bigger. Now, Morgan has a relatively good scale, with strong support from foreign shareholders and Chinese shareholders. If MP can bring a good investment process and good products, it should be able to occupy a small seat in the industry.

Twenty-first Century: as of the end of the three quarter, the scale of the Morgan raised fund has reached about 120000000000. What kinds of products will be focused on the product layout in the future? What are the changes of the company strategy?

Wang Dazhi: Jimmy Morgan has taken root in China for 15 years. Many investors feel that we are good at investing in equity, especially in growing equity products. Therefore, growth, equity and proactive products will be a major development direction in the future.

But at the same time, we need to develop different strategies, because customers' needs are multifaceted. They need both growth and value categories, as well as hybrid and solid products.

A product type that we want to focus on in the future is passive products. We do not have any ETF products yet, but we must continue to deploy ETF in the next two or three years. ETF is also a successful product of our foreign group over the past 35 years.

In addition, another product type we value is multiple assets, which are very popular abroad. It takes time to establish a concept of multiple assets, but in the future, multiple assets will become popular in China.

Customers feel that Shang Morgan is a company with foreign capital background. Our investment in foreign countries should be stronger than that of our competitors. Therefore, we must continue to import foreign products in the right way, so that our retail customers, high-end customers and institutional customers can throw different things, and at the same time, make their portfolio more dispersed.

In turn, many overseas investors are not familiar with the domestic market and have to find a partner to help them enter the country. Our advantage is that we have advantages in all two aspects, which will help us achieve better development in the next 35 years.

But in order to do business in this area, we need to enhance our research and development capabilities, continuously invest resources, and allow our equity and bond products to be recognized, so that both overseas customers and local customers feel that it is worthwhile to rely on both domestic and foreign businesses. This is our strategy and future.

Twenty-first Century: JP Morgan has a layout in the world. What changes can it bring to the industry when it enters China?

Wang Dazhi: in a nutshell, I think Morgan's asset management brings about a systematic investment method, including the rigor of the investment process, how to study a stock, set up a team, let team members communicate with each other, set up a system to make investment performance more long-term. These may be the core values of Morgan management.

Doing more China with the world

Twenty-first Century: in China, there are investment institutions concerned about the impact of the slowdown in the economy on investment. How do foreign investors see the investment prospects of the Chinese market?

Wang Dazhi: China's investment opportunities can not be ignored. For foreign investment, on the one hand, the Chinese market is very large. China is the second largest economy in the world, the second largest stock market in the world and the second largest bond market in the world, which is suitable for long-term investment in foreign capital.

On the other hand, China is the engine of global economic growth, and China's GDP is expected to maintain a 5% growth in the future. In addition to China, no country can find a country in the world. GDP growth is expected to run at 5% intervals in the next 10-15 years. The speed of China's economic growth is not slow at first, and second has certainty. What foreign investors like most is certainty.

In addition, the valuation of the A share market is about 13.5 times, and the historical maximum is 30 times, with an average of 15 times. In contrast, the US has been bullish over the past 10 years, and its market valuation is about 20 times. Whether horizontal or vertical comparison, A shares are relatively low valuation.

Moreover, A shares have the characteristics of high growth and low correlation. Foreign investment in China's A shares helps to reduce the volatility of its global portfolio.

Large overseas institutions will enter China, and the world is very optimistic about China's economic growth and market returns.

We are committed to doing more China with the world. We should use foreign capital thinking to make a forward-looking layout. We hope we can continue to grasp China's core assets and trends.

Don't think it's too late to invest in China. Now it's just beginning. You still have investment opportunities.

Twenty-first Century: what is the situation of foreign capital entering A shares? Which stocks do they prefer?

Wang Dazhi: foreign capital is not only optimistic about China, but also has acted. Foreign investment in the Chinese market is increasing every year. It has become one of the three main bodies in the A share market, and the volume of foreign capital is about to catch up with public offering and insurance. Massive foreign capital will continue to flow into A shares in the future.

Foreign capital likes certainty and is willing to pay a premium. Foreign investment will choose the leading industry and choose a competitive, moat company that is not so easy to imitate by their rivals. Foreign investors all over the world like to buy stocks from all over the world, such as Samsung, Japan's SONY, TOYOTA and so on.

With more foreign capital, China will foresight the most promising industries and companies, such as consumption (including food and beverage, household appliances, etc.), medical and health, science and technology, and related leading enterprises. China's prelude to the layout of foreign capital has been opened up. It is a growth opportunity for the world's most scarce quality companies in China, such as those that are difficult to find abroad, with Chinese characteristics, with a leading position in the market and difficult to be surpassed by rivals.