Interview With Deng Zhaoming, President Of Penghua Fund, Based On Long-Term Investment And Creating Excellent Culture

Deng Zhao Ming

At the end of 11, Deng Zhaoming received an exclusive interview with the twenty-first Century economic report reporter at Shenzhen headquarters of Penghua Fund.

Worrying about too much and not doing enough is a self modesty mentality of many hardworking and pragmatic public leaders. Deng Zhaoming, the head of one of the oldest ten fund companies in the industry, has rarely received media interviews since he was president of Penghua Fund.

Behind the low-key style of the boss, Peng Hua's growth rate is seen by the market. In the past 21 years, the Penghua Fund has witnessed the reform and improvement of the public fund industry system, witnessed the evolution and evolution of the investment system, and led the upsurge of fund product innovation.

By the end of September 2019, the number of products raised by Penghua Fund was 166, and the scale of asset management was ranked first in the industry. In the three quarter of 2019, Penghua Fund managed the net assets of the public fund at the end of the 157 billion 353 million quarter of the year in the end of the year of the year of the end of the 157 billion 353 million quarter, ranking eleventh in the whole industry. Galaxy securities data showed that in the three quarter of the fund managers' stock investment active management ability evaluation, Penghua Fund took the initiative to manage the return rate of the average stock investment of 43.69% of its participating funds, ranked ninth in the 108 companies that were included in the evaluation, and ranked second in the former 20 largest non fund companies. Eliminating Monetary Fund and short-term financial bond fund

"Open learning mindset and the entry of foreign shareholders are one of the important factors for Peng Hua's continuous development," Deng said in an interview. He stressed that the competition for information management industry will become more intense in the future, and the core of competition lies in asset management capability.

Deng Zhaoming said that Penghua Fund will always focus on the core of "wealth appreciation for holders", adhering to the management concept of "integrity, respect, cooperation, excellence and innovation", actively grasp the historical opportunities of financial technology, and build the flagship ship of the public offering fund, and strive to become the leading integrated large-scale asset management agency in the industry.

Create excellent culture

Twenty-first Century: as a 21 year old public offering, what kind of characteristics does Penghua have?

Deng Zhaoming: at the end of 2007, with the addition of Italy's foreign capital shareholder,, the new management team came into being. From the perspective of industry development, the entry of foreign capital does not mean that it will succeed. The key is to see the running in of shareholders. For a long time, Penghua's shareholders have the same interests, focus on the long-term development of the company, make full use of them, fully trust and fully empower the management, and provide protection in the basic system of the company.

On the basis of Sino foreign joint venture, Penghua gradually formed its own characteristics. First, Penghua focuses on creating long-term value for customers. Companies in the long run, do not pursue short-term interests, from the long-term layout of business, build a team to create sustainable investment returns for customers.

Secondly, Penghua always adhered to risk control and built a culture of "entering the brain into the heart". We mainly manage risk effectively through three aspects: first, the construction of the system process, the two is the information system construction, and the three is the construction of compliance culture. Practice has proved that our wind control system is effective, and there have been no irregularities for many years. Recently, the securities fund industry held a mobilization meeting for cultural construction. We also conscientiously studied and carried out an important speech by Chairman Yi, and further intensified the construction of the industry culture of "compliance, integrity, professionalism and stability".

Third, create a positive and progressive corporate culture. The pursuit of excellence is the core value of a company. If investors give you money, you must do everything you can to achieve perfection. To create long-term value for customers, customers will always be accompanied. Therefore, our employees are very enterprising and strive to be top notch in their business areas. Penghua Fund's investment research team adheres to the concept of long-term investment, value investment and prudent investment. It goes deep into the fundamental research of the company, excavating the best investment targets and holding it for a long time to create a sustainable investment return for investors.

Fourth, respect customers, be honest and trustworthy, take customer needs as the starting point, and adhere to the principle of "customer first". It is necessary to emphasize the promise and keep faith. Based on the long established customer trust relationship, large domestic state-owned banks, joint-stock banks, brokerages and insurance information management institutions have become important long-term partners of Penghua Fund.

Fifth, embrace innovation and meet challenges. The development of public funds is changing rapidly. We need to closely embrace the needs of customers, embrace changes at all times, and actively innovate and transform and develop in every business field. In terms of product innovation, Peng Hua also takes the lead: as the Pathfinder of the domestic REITs, in 2015, Penghua Fund issued the first public offering REITs in China, Penghua Qianhai Vanke REITs, to help stabilize the local debt and build steady investment. In August this year, Penghua Fund joined hands with a number of agencies to launch the first 5 year local debt ETF in the whole market, the 5 year local debt ETF of Penghua central card.

Twenty-first Century: the key to the development of public fund companies is talents. How can Penghua Fund cultivate their talents?

Deng Zhaoming: the core asset of asset management institutions is talents. How to maintain the stability of the core team and effectively stimulate the vitality, creativity and potential of employees is particularly critical. Penghua Fund has always advocated "enterprising and striving for excellence". Based on "respecting people, trusting people and cultivating people", we set up a cultural ecosystem of employee recognition, benefit and sharing, encourage employees to develop their strengths and recognize the value of talents in a market-oriented way.

Penghua respects employee values, concerns employee growth, explores employee potential and cares about employee life. Through the "tutorial system" and "help and take" mechanism to help employees find a clear and appropriate career path, so that every employee in the company platform to achieve self growth and progress. At the same time, the company also invested a lot of resources to establish a complete logistical support system to solve the worries of employees.

No matter what the employment environment is, since 2008, Penghua Fund has maintained campus recruitment every year. At present, the company has established a "young" and "vigorous" talent echelon. The proportion of post-90s employees is 33%, and the proportion of employees after 85 is 70%. Investment researchers basically come from Tsinghua, Peking University and other elite schools. There are also a number of business backbone members who have been trained for more than 10 years.

In addition, the company implements a positive incentive mechanism, "striving for the initiative and striving for glory", so that the striving people can embody their own value in the market. Through differentiated assessment, we can inspire employees to pursue excellence and pursue perfection to a greater extent.

The development of information management industry needs to accumulate and precipitate for a long time. Talent training, management mechanism building and internal cultural construction have become the foundation for sustained, steady and long-term development of the company.

Twenty-first Century: ESG investment in the public offering industry has been increasing continuously. As one of the active promoters, Peng Hua regards the future development of ESG in the Chinese market.

Deng Zhaoming: according to the mature experience of overseas markets, ESG investment plays an important role in improving the efficiency of financial services in the real economy. ESG investment into the public fund investment decision-making process, not only as an expression of public value, but also helps to avoid risks and provide long-term and stable investment returns for holders. ESG investment is gradually becoming the active choice of public funds.

Penghua Fund belongs to the industry earlier in the construction of internal investment culture, and earlier in the ESG investment field practice "corporate governance (G)" to protect the interests of minority shareholders. In 2012, Peng Hua Foundation joined the Yale University foundation to nomination candidates for GREE electric appliances. In 2014, Penghua Fund put forward useful suggestions to the East China pharmaceutical management through voting to solve the problem of corporate refinancing. In order to further deepen the responsibility investment, in 2018, Penghua Fund successively joined the Asian Corporate Governance Association, the China Financial Association Green Finance Specialized Committee and the United Nations responsibility investment principle organization, and actively promoted the integration practice of ESG investment in the field of investment and research. With the continuous deepening of financial opening, we believe that ESG investment will also establish a long-term mechanism in China's capital market, helping the information management industry to effectively guard against risks and healthy and sustainable development.

Twenty-first Century: as the Pathfinder of domestic REITs, Penghua Fund issued the first public offering REITs in 2015. But in recent years, the development of public REITS has been slow. What do you think of this?

Deng Zhaoming: Innovation in any field will inevitably be accompanied by a continuous improvement process.

The original intention of REITs product design is to provide investors with investment opportunities to obtain stable cash flow returns and sustained asset appreciation. The emergence of public offering REITs products has further enriched the investment category of residents' wealth management.

However, due to the actual landing of the public offering of REITs products involves a series of supporting policies, the core elements involve the main body of responsibility, tax mechanism, issue and transaction, and so on. We believe that the public offering of REITs products as an important alternative investment is an important trend in the diversification of public investment instruments. Short term development is also part of the innovation and development of the whole category. The improvement of relevant policies in the future will promote the steady development of the public REITs business.

Twenty-first Century: how does Penghua layout its financial technology?

Deng Zhaoming: the promotion and development of financial and technological capabilities is also one of the important strategic directions of Penghua Fund. At present, Penghua Fund has set up a financial technology team with independent training, independent development and independent operation, and technology empowerment business, using digitalized, scene oriented and socialized innovation technology to provide customers with more convenient fund services.

The first is the study of empowerment investment and the quality of investment and research. Facing the massive data of listed companies, how to use artificial intelligence and big data technology to screen valuable information and improve the efficiency of investment research has become an important topic in the research of financial technology investment.

The two is the energy channel service to improve precision marketing. The use of financial technology in customer portrait and channel services will further deepen understanding of customer needs, deeply analyze investment behavior, strengthen scientific management of sales behavior, and enhance the accuracy of product marketing.

The three is to empower operation management and improve operational efficiency.

Actively learn from the outside world

Twenty-first Century: as China's financial opening up continues to increase, how to view the opportunities and challenges of the Chinese market?

Deng Zhaoming: compared with several decades of development in China, the international capital market has accumulated more experience no matter in the construction of talent team or in international investment management. With the opening of the financial sector, the entry of foreign institutions will stimulate the vitality of the market and bring rich learning experience to the industry.

Diligence and strong learning ability are two advantages of Chinese. In the process of reform and opening up, China has been making great progress in outward learning, and the opening of financial markets will bring the same effect. In the past, we need to go out to study, and now it is a rare opportunity to bring foreign institutions to the door to let everyone study directly. We should actively learn the outstanding experience of foreign capital and improve our ability.

However, opportunities will inevitably be accompanied by certain difficulties and challenges. Through the rapid development of the past 21 years, the domestic information management industry has basically established a relatively stable competition pattern under different resource endowments, and the head effect has gradually emerged. The accession of foreign capital management giants will deepen the Matthew effect of the industry. Only by constantly upgrading our core competitiveness and striving for excellence can we cope with the fierce competition environment.

Twenty-first Century: how do we view the future development of the public sector and the information management industry?

Deng Zhaoming: as mentioned earlier, with the opening up of the financial market, with the further opening of the capital market, the long-term capital, advanced experience and professional talents introduced by foreign institutions will undoubtedly aggravate the competitive situation of the industry, but this will further stimulate the competitive vitality of the industry and promote the competitiveness of domestic information management institutions. Both the endogenous pressure of industrial innovation and the competitive pressure of global environment will become an important driving force to boost the sustainable development of public offering fund.