Chapter 39 4. Asset management industry—use other people's money to strengthen oneself

Whether we are familiar with it or not, whether we intend to deal with this industry, or simply devote ourselves to it, get involved in it, we must understand a fact. This fact is - in the next ten years, this industry must be one of the industries with the greatest growth potential in China. Topic Introduction: Public Professional Managers——Transformation from Weak to Strong For the vast majority of Chinese people, this is a very unfamiliar field. The reason why it is strange is that we lack sufficient understanding of it, and this understanding stays at both the cognitive level and the actual contact level.

Although it originated in traditional private banking, it is not too long ago for real asset management businesses to emerge in the West.In China, it is a hot topic that has only appeared in recent years However, whether we are familiar with it or not, whether we intend to deal with this industry or not, or simply devote ourselves to it, we must understand a fact. This fact is - in the next ten years, this industry must be one of the industries with the greatest growth potential in China. Like banks, asset management companies use other people's money to make profits for themselves. This is a very simple model.

No matter which country they are in, asset managers engaged in wealth management business are using investors’ funds to buy stocks and bonds, and using this to collect fees from investors. Similarly, insurance companies in the same industry also use them The insurance premiums collected there are used to invest in the securities market, so as to earn income beyond the core insurance business. It can be seen from this that the business model of the asset management industry is fundamentally different from other industries in terms of profit mechanism. It can be said that this is an industry that uses other people’s money to grow itself. When each of us provides a service, we become shareholders without knowing it.Asset management companies are just like the professional managers we hire.

So, for such an industry, what is its development prospect in the next ten years? Internationally, with the process of economic growth, population aging and financial deepening, the scale of asset management business has made great progress.As early as 2000, the total global asset management business had reached 10 trillion U.S. dollars, and if public offering asset management was added, it would be close to 30 trillion U.S. dollars. In China, this kind of growth also exists. We don’t need to list all kinds of boring data. We just need to look at the people around us. The diffusion effect is surging, and you can understand the growth rate of this industry.

In fact, for China, the asset management industry is a rapidly growing industry. At present, my country's domestic asset management business is still in the early stages of development. According to statistics, at the end of 2006, China's asset management industry only had a total scale of more than 150 billion US dollars. If this figure is compared with our country's GDP In comparison, its percentage of GDP is only 8%, while the United States and the United Kingdom reach 214% and 142% respectively. It can be seen that this proportion is not only far lower than that of developed countries, but even lags behind the global average.

As our financial environment tends to be better in the next ten years, and as investors' investment behavior changes, China's asset management industry will surely develop into a huge market. Under such a general trend, in the next ten years, China's asset management industry, which is far from mature, will surely obtain the best growth environment. At that time, whether China's asset management industry will become a new growth of China's economy It is still unknown, but one thing is certain, the capital in the hands of this "professional public manager" is by no means the same.