Since 2024, the scale of private equity asset management of securities companies has stopped falling and rebounded, and the asset management business has become a new engine for the performance growth of many securities companies. Entering the fourth quarter, the “new bull market” has brought new market opportunities to the development of securities firms and asset management.
Recently, Wu Shengsheng, general manager of Pacific Securities Asset Management Headquarters, made a study and judgment on subsequent market opportunities. Wu Shengsheng believes that as the performance of listed companies is gradually disclosed, March next year will usher in an important verification period for economic recovery and corporate profit recovery. If good verification results can be obtained, the market is expected to usher in an index-level market driven by profit restoration. At that time, industries that benefit from industrial policies, industries that benefit from rising CPI, and industries with high profit expectations and high valuations will usher in opportunities. In the 16 years since
has been in the industry, Wu Shengsheng has witnessed the development and changes of China's capital market. He mentioned that in the early and late stages of a bull market, the characteristics of "retail pricing" are usually displayed. "We pursue long-termism and have been committed to exporting this concept to investors. When value investing and long-termism become mainstream concepts in my country's stock market, only slow bulls and long-term bulls can emerge, and only then can the stock market contribute to national economic development and personal wealth accumulation. More positive energy."
Wu Shengsheng believes that securities companies' private equity asset management products are aimed at qualified investors, who have certain wealth accumulation and wealth management experience, and are mainly based on long-term and stable allocation needs. Therefore, the "improving active management capabilities" of the securities firm's asset management industry needs to be centered around absolute return targets.
Personal profile: Mr. Wu Shengsheng graduated from the School of Finance of Nankai University with a master's degree and a master's degree in finance. He joined the Compliance Department of Pacific Securities in January 2006 and served successively as Deputy General Manager of the Compliance Department, Deputy General Manager of the Asset Management Headquarters, General Manager of the Fixed Income Headquarters, and General Manager of the Asset Management Headquarters.
Let’s look at the details -
The market shows characteristics driven by individual investors
Fixed-income products are still the top choice for asset allocation
Question: In the third quarter of this year, the market suddenly ushered in a “new bull market”. What do you think about this? How is the market expected to perform in the future? In the current market environment, how should investors seize opportunities and make investments?
Answer: A brief review of this "new bull market": This round of A-share market conditions began to warm up with the U.S. interest rate cut on September 18, the State Council Information Office press conference was officially launched on September 24, and the Political Bureau meeting of the Central Committee on September 26 Reversing the expected upward trend, the trend in October diverged, with the index and large-cap blue-chip stocks entering a consolidation period, while BSE and small-cap stocks continued to rise.
Obviously, this round of market prices stems from the adjustment of domestic macro policies, from a "long-term perspective, seeking progress while maintaining stability, and focusing on short-term risk prevention" to "paying attention to short-term difficulties, increasing stimulus efforts, and boosting confidence". The policy mix The decisiveness of the punches and the speed of execution exceeded market expectations.
At present, A-shares are in a stage where investor confidence is gathering, the market remains hot, and retail investors dominate pricing. Looking forward to the market outlook, I think the following stages may be formed:
In the short term, market conditions are mainly driven by expected improvement. 's current monetary policy and fiscal policy have been clarified, and other supporting policies mainly affect the real economy and will not directly stimulate the stock market. It is expected that there will be limited room for continued improvement, and the index may still maintain a volatile pattern. In terms of individual stocks, the current market shows typical characteristics driven by individual investors, with themes such as small-cap growth stocks, core technology stocks, mergers and acquisitions and restructuring related to new productivity being dominant.
By March next year, as the annual reports of listed companies will be disclosed one after another, the market will usher in an important verification period for economic recovery and corporate profit recovery. If can be well verified, the market is expected to usher in an exponential market driven by profit restoration. At that time, industries benefiting from industrial policies, industries benefiting from the promotion of cpi, and industries with high profit expectations and high valuations will usher in opportunities. On the contrary, if the recovery of the economy and corporate profits falls short of expectations, there will be a risk that the market will continue to fluctuate or even decline.
Judging from the current precise implementation of macro policies, the prospects for economic data and corporate profit recovery are relatively optimistic. On the other hand, the turbulent international situation will cause periodic disturbances. However, these are not the decisive factors affecting the trend of A-shares.
From the perspective of investors, at the current stage, customers with higher risk appetite and rich investment experience can moderately participate in individual stock investments, but they need to grasp the timing of transactions and improve their ability to avoid risks such as "junk stocks", following the trend of speculation, and "killing pigs". consciousness. For customers with low risk appetite, they can gradually increase their equity asset allocation and prefer "fixed income +" or hybrid products issued by asset management institutions with strong capabilities.
In terms of the bond market, since the "924", the "stock-bond seesaw" effect has been more significant. The current consensus is that the introduction of a package of stimulus policies will effectively speed up the pace of the domestic economy out of trouble. However, due to the complexity of the internal and external environment, the difficult situation will continue for a long time. Macroeconomic fundamentals and monetary policy do not support debt. The market turns from bull to bear.
At the same time, the rise in the stock market will be negative for the bond market from the perspective of asset cost performance and liquidity, especially the liquidity problems caused by the redemption pressure of asset management products, which will have a negative impact on credit bonds, especially long-term credit bonds with weak qualifications. Definitely an impact. However, this also increases the allocation value of credit bonds, and fixed-income products are still the primary choice for individual household asset allocation.
asked: What directions and sectors are you optimistic about in the equity market next year and in the long term? In the fixed-income market, what suggestions are there for next year in areas such as duration allocation and leverage operations?
Answer: As a professional organization, mainly considers two factors when selecting assets: one is the cost-effectiveness of assets, and the other is the compatibility between assets and products. From this perspective, there are three major categories of assets that are preferred in terms of equity: The first is high dividend yield stocks and stocks with low valuations and certain growth potential that are suitable for fixed income + products; the second is new productivity, industrial breakthroughs, and domestic substitution High-growth stocks in the same direction; the third is distress reversal, that is, stocks whose prices are far below their intrinsic value and are close to or reaching the bottom of the industry cycle.
It should be noted that the early and late stages of the bull market usually exhibit the characteristics of "retail investor pricing". Small-market capitalization stocks, theme stocks, and junk stocks are prone to skyrocketing prices. On the contrary, stocks with good fundamentals have moderate growth rates and have no obvious profit-making effect. The asset selection of most of our products is considered from a long-term perspective, and risk prevention and control are the basic principles. We pursue long-termism and have been committed to exporting this concept to investors. When value investing and long-termism become mainstream concepts in my country's stock market, only slow bulls and long-term bulls can emerge, and the stock market can contribute more positive energy to national economic development and personal wealth accumulation.
In terms of bonds, I believe that credit bonds will have an advantage over interest rate bonds next year. Factors such as the continued intensification of macroeconomic policies, rising cpi, and increase in the supply of interest rate bonds will increase the volatility of market interest rates next year. Therefore, bonds will last longer next year Period is not the dominant strategy.
Accordingly, after the recent sharp adjustment in credit bonds, absolute value has emerged. For product owners with unstable liability sides, credit bonds with short duration, weak qualifications, and high absolute yields next year and credit bonds with good qualifications and high liquidity all have allocation value. The dumbbell configuration is better. choose.
In terms of leverage, the repo rate is expected to remain stable at a low level. The People's Bank of China's awareness of risk prevention and protection on the capital side remains at a high level, and the market risk is not large. It mainly depends on the financing difficulty and leverage use strategies of different institutions.
Control investment risks and use leverage with caution
Provide customers with sustained and stable investment returns
Question: As a senior investment researcher in the industry, what interesting stories or personal experiences do you have to share during the last round of bull-bear transition? What investment logic and investment philosophy have been formed, and how are they implemented in practice?
Answer: Since entered the industry in 2006, I have personally experienced many bull-bear transitions, including the most spectacular "reform bull" in the history of A-shares in 2006 and 2007 and the most dramatic "leverage bull" in 2014 and 2015. In the bull market of 2006-2007, several of my friends made a lot of money. They felt that they were "stock gods" and resolutely quit their jobs to trade stocks professionally. However, after 2008, I had to "find a class" again. There should be people and stories like this in every bull market.I want to share two stories:
The first story is that in early July 2015, the stock market fell rapidly from its high point. The regulatory authorities required major shareholders of listed companies and directors, supervisors and senior management who had reduced their holdings in the past 6 months to increase their holdings. stock. Many market participants believe that the market will stop falling and stabilize, and may even usher in a second wave of rising opportunities.
At that time, several institutions made leveraged products with us. In just 3 months, we experienced the process of covering positions after a decline, rebounding to make profits, falling again, covering positions, and finally liquidating the positions. As a witness and operator, I deeply feel the huge risks involved in violent market fluctuations, the difficulty of decision-making, the cruelty of leverage, and the drama of life. Since then, I have deeply understood the importance of investment risk control and the concept of prudent use of leverage.
The second story is that from 2017 to 2018, there was a wave of defaults on private enterprise credit bonds. I was in charge of the fixed income department at the time, and unfortunately I stepped on a thunderbolt. In the process of dealing with risks, we found that a "buyer's pricing" situation was formed because there were a large number of sellers but few buyers in the market.
In the early stages of the default wave, many companies did not want to "lie down" and were still trying their best to repay their debts. Therefore, opportunities emerged to buy at a very low price, pay at a higher price or even pay in full. We were able to participate in the high-yield bond market, which not only quickly made up for the losses caused by the thunderstorm, but also became the largest high-yield bond investment institution in the market at that time, earning the company good returns for many consecutive years. After
took charge of the asset management business, we were less involved in the field of high-yield bonds. However, in my long-term participation in the high-yield bond market, I have developed some very practical investment concepts and team-building experience, such as reverse investment, accurate pricing, trading games, seizing market opportunities, differentiated competition, and the organic combination of focus and decentralization. Today, these concepts and experiences are better applied in the construction of our asset management and investment research team and our product investment portfolio strategies, bringing customers sustained and stable investment returns.
asked: What are the advantages and unique strategies of Pacific Securities Asset Management in areas such as investment research capabilities, product management, and strategic thinking?
Answer: Looking at this year, the performance of the company’s asset management products is still remarkable. Among them, the fixed income + products represented by the Jin Yuanbao series and pure debt products such as the Nuggets pure debt series have achieved relatively good results. Satisfactory results.
Investment research capabilities have always been the core competitiveness of Pacific Securities Asset Management. Our investment research system aims to provide differentiated and characteristic products and services for private equity customers. The characteristics can be simply summarized as "effectiveness" and "timeliness".
First of all, the core of our investment research system lies in the integration of investment and research. The investment manager also undertakes part of the research work, and the researcher's main task is to screen out good investment targets and continue to track changes in their risks and intrinsic values. On the basis of solid fundamental research, we pay more attention to the judgment of reasonable prices and purchase targets that are cheap enough.
Second, focus on objective reality and constantly improve investment research logic and methods. Our team attaches great importance to field research. Researchers spend more than half of every year on business trips. In addition to understanding the real production and sales of industries and companies through field surveys, we also conduct multi-angle research from different aspects to confirm and revise existing perceptions to form a reliable Higher research results.
Third, a relaxed and relaxed risk management mechanism. takes credit bonds as an example. We have different regulations on the upper limit of investment targets of different internal rating categories for products with different risk levels. At the same time, we also impose double proportion restrictions on entities to achieve diversification on the basis of risk matching.
For example, when entering into the pool, we will not apply “one size fits all”. The internal rating of a certain bond is level 5. Products with lower risk levels cannot be purchased, while products with higher risk levels can be purchased at a certain percentage. . In addition, when the target becomes oversold and the market misses the opportunity, we will comprehensively evaluate its investment value, and after multi-party research and special discussions by the credit committee, we will increase the investment amount of such target.In terms of
products, after the introduction of new regulations on asset management, we actively responded and began to transform into net worth. We have cooperated with China Guangfa Bank on the "Exclusive Quarterly Profit Series", and with the Postal Savings Bank of China on "Li & Fung/Wenfeng/Ruifeng" Linked Series", the "Nianxin Series" in cooperation with Industrial Bank, the "Youyuexiang/Youzunxiang/Yuexin Series" in cooperation with Rizhao Bank, etc., are the first or the first batch of net value products of cooperative banks to be admitted to securities companies .
In addition to the bank customized series, we continue to optimize product layout, actively cultivate independent brands, and build a multi-gradient, multi-style, and multi-term product pedigree to adapt to the needs of different customers.
Specifically, for inclusive investors, we have developed "30-day rolling holding" and "six-month rolling holding", two large collections that refer to the operation of public funds. The products use pure debt strategies to obtain absolute returns. As the goal, it is characterized by an extremely low retracement rate and has a good reputation in well-known third-party channels such as Lufax, JD Finance, and Tiantian Fund.
is aimed at high-net-worth investors. We are committed to creating a richer, more recognizable and more influential small collection product series brand. After years of development, in order of risk from low to high, the "Tiantianli Series" positioned at live money management, the "Jintianli Series" positioned at stable financial management, and the "Nuggets Pure Debt Series" positioned at aggressive fixed income have been formed. The "robust enhanced series" positioned at multi-asset fixed income + "And the "Golden Yuanbao Series" positioned as a multi-strategy fixed income +, the operation period is as short as 1 week and as long as 9 months, and has designed a variety of participations such as regular open type, weekly application and quarterly redemption type, minimum holding type, etc. rules to meet the differentiated needs of customers in an all-round and three-dimensional way.
In addition, on the basis of consolidating our advantages in bond investment research, we have also accelerated our layout in the equity market, using our own strengths and gathering talents to develop various styles of FOF products, such as the "Junying Preferred FOF" which is positioned for subjective long positions. Series", the "Cangjinge fof series" positioned at quantitative index growth, and the "Zhou Zhoubao fof series" positioned at neutral arbitrage, etc.
Overall, our asset management products have a complete range of categories, covering public and private offerings, different opening periods, and different risk and return characteristics, and can meet the different needs of all types of customers, especially middle- and high-net-worth customers. On the other hand, our investment research team has been deeply involved in pure debt and multi-strategy fields for more than ten years, and has strong asset mining and trading capabilities, which provides a basic guarantee for us to achieve good performance for many years.
Focusing on the absolute income target
Improving the active management capabilities of securities firms’ asset management
Question: Improving active management capabilities has become a hot word in the securities firm’s asset management industry, and it is the only way forward for future development. In your opinion, how should securities firms’ asset management improve their active management capabilities, and in which areas do they need to continue to make efforts?
Answer: There are some differences between brokerage asset management and other large asset management products such as public funds and bank financial management. The private equity asset management products of securities companies are aimed at qualified investors, which are customers with certain wealth accumulation and wealth management experience, and are mainly based on long-term and stable allocation needs. Therefore, the asset management products of securities companies are also mainly fixed income products, focusing on absolute return strategies. The securities firm's asset management industry's "improving active management capabilities" currently mainly revolves around absolute return targets.
In 2021, we made a judgment on the "last three years of golden period" for the credit bond market, actively deployed multi-assets and multi-strategies, made it clear to focus on "fixed income +" products, and gradually promoted flexible allocation hybrid The general direction of the product has been strategically deployed in the direction of sales and investment research. In order to improve our active management capabilities with the goal of "multi-assets, multi-strategies, and absolute returns", we have been improving the investment research system, mainly in three aspects:
First, optimize the allocation of human resources. As a small and medium-sized securities firm, it is difficult for us to build a large investment research team across all asset classes in the short term. Therefore, we need to properly handle the relationship between "experts and experts" and concentrate our limited manpower on researching necessary areas and certain subdivided areas and specific industries that we are good at.
The second is to form a consensus. If wants to perfectly combine research results with investment, it must first form a consensus and then form a synergy.However, the more complex the investment strategies and logic are, the more difficult it is to reach a consensus. The solution is to find strategies, varieties or opportunities that are easy to verify. If it can create a money-making effect, it can quickly reach a consensus with the help of positive feedback, and then form a systematic accumulation.
The third is to adapt to the product. Our products are closely related to customer needs and sales difficulty. All good configuration strategies must be based on popular products to achieve output. Based on the private equity attributes of the product, strategic combinations with less volatility, better liquidity, and comparatively advantageous returns constitute our main product system, and are also the focus of investment research. As the scale of management expands, assets and strategies with sufficient capacity and liquidity become the focus. Other types of assets and strategies, no matter how good they are, can only be used as secondary options.
asked: In recent years, securities companies have applied to establish asset management subsidiaries one after another, and the speed of approval is also accelerating; at the same time, there are already securities companies applying for public offering licenses for asset management to "break the ice." What do you think about this?
Answer: From the perspective of securities firms, of course they all hope to obtain a public offering license and expand their business scope. However, from the perspective of the development and supervision of the public fund industry, it can be found that the access to securities companies’ asset management public offering licenses is becoming stricter and the pace is slowing down.
At present, the state’s guidance for the reform of financial institutions is classification and hierarchical management, supporting leading institutions to become better and stronger through mergers, acquisitions, reorganizations, organizational innovation, etc., and encouraging small and medium-sized institutions to develop differentiated development, characteristic operations, and become more refined and detailed. There are currently close to 160 institutions holding public offering licenses, and only 49 manage non-monetary funds exceeding 100 billion yuan, accounting for a total of 82.5%. The public offering industry urgently needs to improve the quality of institutions rather than increase the number of institutions.
For Pacific Securities Asset Management, a public offering license is a long-term plan, not a short-term goal. We insist on improving the professional capabilities of investment research as the core, prioritizing the interests of clients as the basic professional ethics, taking the preservation and appreciation of client assets as the professional honor, identifying the correct positioning of the institution, and providing differentiated and characteristic products based on the needs of the private equity customer base. Make an advantage in segmented tracks. After long-term accumulation, obtaining a public offering license is a matter of course. Introduction to
Pacific Securities Asset Management Headquarters:
Pacific Securities obtained approval from the securities regulatory authorities to carry out asset management business in March 2012. Pacific Securities' asset management business includes collective asset management business, single asset management business, asset securitization business and investment advisory business. Its service targets include institutional investors and individual investors, among which institutional investors include various enterprises, listed companies, banks, etc. .
Pacific Securities' asset management business includes collective asset management business that serves multiple customers (including public collective products), single asset management business that serves a single customer, asset securitization business and investment consulting business. Investments involve bonds and stocks. , fixed placement, funds, derivatives, stock pledges, etc., to meet the diverse investment needs of investors.
Pacific Securities Asset Management Headquarters adheres to the business purpose of focusing on customer needs, takes "standardization, professionalism, innovation, and efficiency" as the basic principles for conducting customer asset management business, operates steadily, standardizes management, and prudent investment, and strives to provide customers with high-quality services. We provide high-quality and efficient value-maintaining and value-added services, and are committed to building a high-end brand in the asset management business. (cis)
