As the Federal Reserve significantly cuts interest rates, global capital markets continue to experience wide fluctuations.

Superimposed by the trend of the global shift from old to new momentum, in an era of low interest rates and low risk appetite, the wealth management needs of domestic residents are undergoing profound changes.

Wu Jianbing, Chairman of China Merchants Wealth Management and President of Shenzhen Wealth Management Association, believes that the current economic growth model has entered a new stage of high-quality development.

High-quality development in wealth management requires grasping two key words: one is to create value, and the other is to unite for mutual benefit.

The transformation of residents' wealth management needs and goals this year has seen a continuous reduction in deposit interest rates and an increase in the volatility of the stock and bond markets.

The trend of residents towards low-vibration, stable diversified asset allocation is highlighted.

Wang Jianli, President of CICC Wealth Securities, pointed out at the recently held second Xiangmi Lake Wealth Management Forum and the establishment of the Shenzhen Wealth Management Association that in the long run, the capital market still shows a growth trend in fluctuations, and the structure of residents' investment categories is also undergoing changes.

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The proportion of cash and deposits, real estate investment, and bank wealth management has been declining in recent years, while the capital market share is continuously rising.

It is expected that this trend will continue, and there is still a lot to be done in wealth management business.

The transformation of residents' wealth management needs and goals has also had a profound impact on the product innovation and business models of wealth management institutions.

Liu Kai, Chief Product Officer of Ping An Wealth Management, said that under the new situation of slowing economic growth and declining interest rate levels, residents' desire for asset preservation and appreciation and the increase in property income is particularly strong.

Therefore, wealth management institutions need to put the interests of investors first and help residents achieve their wealth goals.

How to achieve high-quality development of wealth management and help residents achieve the goal of wealth preservation and appreciation?

Wu Jianbing believes that asset management institutions need to give full play to their own endowments and strengths, innovate product design and service models, meet the personalized asset management needs of different investors and different needs; at the same time, in the current economic environment, facing a market environment of low interest rates and low risk appetite, it is necessary for all institutions to unite as one, jointly overcome difficulties, further strengthen exchanges and cooperation, "unite the strength of the crowd, gather the wisdom of the crowd, and condense the hearts of the crowd", jointly explore strategies to deal with challenges, share successful experiences, and jointly develop the market.

Xia Fan, Deputy General Manager of the Wealth Platform Department of China Merchants Bank, said that the wealth management industry should take high-quality development as its fundamental mission and goal, focusing on four major capabilities: first, value creation ability, focusing on product supply, investment research construction, service experience, and other key points to help customers achieve wealth preservation and appreciation; second, "people + digital" service ability, combining digital capabilities to provide customers with a better service experience; third, risk management ability, controlling product access, product sales, and underlying asset access to enhance customers' investment gains in all aspects; fourth, the ability to co-prosper and coexist in the ecosystem, through the creation of an open wealth platform, aggregating institutions in the entire market, achieving complementary advantages and capability stacking, and expanding the boundaries of wealth management services.

Especially in the construction of investment research capabilities, the industry generally believes that it is very important to improve the investment research capabilities of asset management institutions themselves.

Liu Kai emphasized that as the market environment changes, investors' risk preferences gradually tend to be more stable, and institutions need to respect investors' risk preferences, provide a richer range of low and medium risk preference and diversified products to meet the needs of different investors; at the same time, it is even more important to strengthen the construction of investment research capabilities, gather more professional talents, and continuously improve their own investment research capabilities, which is also the key to meeting the diversified service needs of investors.

In addition, Wang Jianli, President of CICC Wealth Securities, further pointed out that securities firms are steadily advancing the old track of license business while actively exploring new business models such as buy-side investment advice, actively integrating into the torrent of asset allocation, and the concept of buy-side investment advice is increasingly becoming an industry consensus.

In Wang Jianli's view, in the future, wealth management institutions need to focus on their main responsibilities and businesses, maintain consistency with customer interests, focus on the transformation and upgrading of asset allocation and buy-side investment advice, strive to improve customers' holding yield and reduce volatility, and at the same time, based on the long-term investment advantages of residents' assets, guide residents to layout long-term assets, and help residents share the long-term development opportunities of the country and the era.

Strengthening diversified asset allocation capabilities and strengthening the construction of their own investment research capabilities, the improvement of asset allocation capabilities is also increasingly concerned by investors and asset management institutions.

Cao Xusheng, Assistant General Manager of Morgan Fund, believes that one of the effective ways to combat the low-interest-rate environment is asset allocation, and investors are advised to gradually achieve a better risk-return ratio through asset allocation.

Chen Jia Chun, Co-Chairman of CITIC Securities Wealth Management Committee, said that in the face of increasingly diverse and complex financial needs of customer groups and increasingly fierce industry competition, the key for wealth management institutions to better meet customer needs and improve comprehensive competitiveness lies in focusing on the urgent needs of customers for asset allocation, actively building cross-license resource integration capabilities and ecosystem construction capabilities, and providing customers with one-stop, comprehensive wealth management solutions.

In Chen Jia Chun's view, building long-term matching combinations for different customer groups, achieving matching between the client side and the product side, and between the capital side and the asset side, is also a direction that wealth management institutions need to work together.

Looking at the trend of asset allocation, index investment is still one of the directions of market attention.

Chen Shuijian, the designated deputy general manager of Life Insurance Assets, said that the future stock market will be dominated by volatile structural market conditions, which puts higher demands on the professional capabilities of investment institutions.

For the insurance industry, the future focus will be on laying out fixed income + products, and through "selecting individual stocks and wave operations" and "quantitative hedging" strategies, to obtain product returns steadily and help the public's wealth achieve preservation and appreciation.

Cao Xusheng said that in the future, ETFs will usher in a period of innovation and development opportunities in China, and will resolutely lay out index products like the CSI A50 and CSI A500 in China, and with the help of J.P. Morgan Chase Group's global active management experience and advantages, actively explore active ETF products to provide more diversified choices for domestic investors.

Wang Deying, Deputy General Manager of Bosera Fund, pointed out that the proportion of index funds is expected to grow steadily year by year.

Bosera Fund's layout of ETFs is reflected in three aspects: all assets, all strategies, and globalization.

At the same time, he said that he will actively layout artificial intelligence and ESG investment, reflecting the high-quality development and social responsibility of the fund company.

Wang Deying further emphasized that in the future, efforts should be made from three levels of the asset side: major assets, sub-strategy styles, and domestic and foreign markets, to build diversified asset allocation capabilities.

While strengthening diversified asset allocation, asset management institutions are also paying more and more attention to the importance of investor education and companionship.

Liu Kai pointed out that in the era of comprehensive net value, how to help investors better understand the market, net value fluctuations, asset allocation, and long-term and value investment concepts has become an urgent problem to be solved.

"We need to unite the strength of all sectors of society to carry out investor education activities that are easy to understand, and provide better services and companionship for investors.

We will strive to accompany investors to grow together and help the people walk more steadily and further on the road of wealth management."