On June 28, Beijing Gao Hua Securities Co., Ltd. (hereinafter referred to as "Gao Hua Securities") officially announced that it will officially launch its wealth management business from now on. The move marks an important step for Gao Hua Securities after the completion of its restructuring.
Gao Hua Securities said that Gao Hua Wealth Management will focus on providing customers with one-stop and comprehensive wealth management solutions, covering asset allocation, investment and financing planning, as well as wealth protection and inheritance.
Zhang Xing, CEO and legal representative of Gao Hua Securities, told reporters that this is a nirvana-like change for Gao Hua, and it is "a must to do". He emphasized that Gao Hua Securities will take a differentiated development path and select subdivisions for professional development.
Zhang Xing, CEO of Gao Hua Securities
Focus on differentiation
Zhang Xing said that Gao Hua Securities' wealth management business emphasizes "customer-centric" and takes a differentiated development path.
According to reports, Gao Hua's wealth management business is mainly aimed at high-net-worth customer groups, emphasizing customer-centricity, and its core lies in listening attentively and fully understanding the unique situation and personalized needs of customers. On the basis of listening and obtaining effective information, we tailor solutions for customers, and flexibly and dynamically adjust and rebalance according to the changes in customer situations, the evolution of needs, and the actual effect of program implementation.
"Solutions are the products of wealth management, and the process of forming solutions is the service of wealth management." Wang Jing, deputy general manager of Gaohua Securities, said.
She told the first financial reporter that most of the traditional securities companies take the brokerage business as the main line due to historical evolution, and on this basis, the wealth management business is extended, and the product differentiation for different customers is not obvious. Gao Hua will have a very different organizational structure and business model, and the customer positioning will also be different.
"Our underlying products are the preferred targets among all the tools in and out of the field, and we will make the underlying labels behind each product and tool very clear, have more than ten years of data tracking, and establish our own strategic configuration and tactical configuration models, and then accurately customize one-to-one solutions for customers." Wang Jing told reporters. When the risk arises, there must be a smooth and efficient process that falls on the customer's subsequent plan adjustment. "You can't change the risk in the market, but you can manage the risk and improve the risk-adjusted returns." She said.
Wang Jing believes that due to the separate supervision of the mainland's financial industry, there are great differences in the investment products of different institutions. Taking banking wealth management as an example, it mainly focuses on deposits and loans, fund distribution and insurance financial instruments, but products related to capital market investment need to use other platforms or tools. From this point of view, as a fully licensed brokerage, Gao Hua has the advantage of using all the varieties of on-exchange trading and using these tools to design products and customized solutions, so that when the market adjusts and changes, it can respond more quickly and efficiently.
Compared with other foreign-funded institutions, Gao Hua's advantage lies in localization. "The advantage of localization is that it can greatly reduce communication costs at all levels such as understanding laws, regulations and regulatory requirements, understanding customer needs and behavior patterns." Wang Jing told the first financial reporter.
Wang Jing, deputy general manager of Gao Hua Securities and senior executive in charge of wealth management business
In the 13 years she has led China Merchants Bank's private banking business, she has achieved an average annual compound growth rate of 25% for private banking customers and a compound annual growth rate of 27% for customer assets, ranking first in the private banking business in China. Jing joined Credit Suisse in 2020 and is responsible for leading and managing Credit Suisse's overall wealth management strategy and business development in China, and has served as Managing Director and Head of Wealth Management Business in China at Credit Suisse Bank AG, and Legal Representative and General Manager of Credit Suisse Securities (China) Co., Ltd.
In February this year, Wang Jing officially joined Gao Hua Securities as the deputy general manager and senior executive in charge of wealth management business of Gao Hua Securities, and the team members have worked in the wealth management business for an average of more than 15 years.
"Non-做不可"
Entering the wealth management business is also an important change for the overall strategic development layout of Gao Hua Securities.
Zhang Xing told reporters that taking this step is a nirvana-like development for Gao Hua, and it is "a must to do".
He told the first financial reporter that the main business of Gao Hua Securities is currently divided into three sectors, the first is investment + investment banking, however, unlike most brokerages, Gao Hua Securities' investment banking business does not do IPO, but to do equity appreciation related business. "Find a good target, through shareholding merger, put our money in, turn it into equity, and then do post-investment management, when the equity appreciation, we exit." Zhang Xing told reporters that this part of the business is like "hunting", and "if you can't catch it, you won't have to eat", so Gao Hua's strategy is to obtain stable and sustainable income through "farming". And the wealth management business is "farming".
Wang Jing said that China's wealth management market is very large, and it is still a blue ocean market. In her view, the current competitive segmentation of domestic wealth management business is not clear enough, and the role of professional ability in it cannot be demonstrated. "For example, fighting a price war, or using some very hard methods that even hurt customers, just to achieve the goal, without a better understanding of the logic and methods of the business. If we can get rid of these superficial chaos and see the essence behind it, we can better and more accurately define customer needs, and the wealth management market will have a broader business space. Wang Jing told reporters.
Founded in 2004, Gao Hua Securities has established a strategic partnership with Goldman Sachs Group and established a joint venture with Goldman Sachs Gao Hua Securities Co., Ltd. After 20 years of development, Gao Hua Securities has become a comprehensive securities company with a full license.
On December 22, 2021, Gao Hua Securities and Goldman Sachs Gao Hua signed a business transfer agreement to transfer all businesses to Goldman Sachs Gao Hua. On June 28, 2023, Goldman Sachs announced that its core business entity in China, Goldman Sachs Gao Hua Securities Co., Ltd. ("Goldman Sachs Gao Hua Securities"), has been approved to officially change its name to "Goldman Sachs (China) Securities Co., Ltd."
At the end of 2022, Legend Holdings, the founding shareholder of Gao Hua Securities, withdrew, and at present, the shareholders of Gao Hua Securities include Beijing Houfeng Venture Capital Co., Ltd., Beijing Gaowang Venture Capital Co., Ltd., and Beijing Deshang Venture Capital Co., Ltd., each accounting for 33.3% of the shares, and the company has no actual controller.
(This article is from Yicai)