With the high-quality development of public funds, we will help build a financial power
Chairman of Huabao Fund, Huang Kongwei
In 2024, the People's Republic of China will celebrate its 75th anniversary.
Wind and rain, spring and autumn. Over the past 75 years, under the strong leadership of the Communist Party of China, China has moved from insufficient food and clothing to a well-off life in all respects, and from poverty and weakness to prosperity and strength, creating a great miracle in the history of human development.
Over the past 75 years, the mainland's economy has achieved historic leaps and bounds. In 1952, the mainland's GDP was only 67.9 billion yuan. In 2023, the mainland's total economic output will exceed 126 trillion yuan. At constant prices, the total economic output in 2023 will increase by 223 times compared with 1952, with an average annual growth rate of 7.9%.
At the same time, the global influence of the continental economic system continues to grow. In 2023, China's total economic output will rise to about 17% of the world economy. From 2013 to 2023, China's economy contributed more than 30% to world economic growth on average, making it the largest driving force for world economic growth. The mainland has become the world's largest manufacturing country, the largest country in trade in goods, the second largest consumer of goods, and the largest country in foreign exchange reserves. While making a leap in comprehensive national strength, the mainland has also achieved a magnificent transformation from the periphery of the world system to approaching the center of the world stage, and has become an important participant, builder, and contributor to the international political and economic system.
Finance is the blood of the economy, and financial services for the real economy are the foundation of financial business and the fundamental purpose of financial work. The Central Financial Work Conference held in October 2023 analyzed and pointed out the situation and tasks faced by the high-quality development of finance, deployed the financial work for the current and future periods, and put forward the "five major articles of science and technology finance, green finance, inclusive finance, pension finance, and digital finance", pointing out the direction for promoting high-quality financial development.
In April this year, the State Council issued the new "Nine Articles", which clearly set the protection of the legitimate rights and interests of investors, especially small and medium-sized investors, as one of the core objectives. Through the two-pronged approach of "strengthening the foundation and strengthening the foundation" and "strict supervision and strict management", the new "National Nine Measures" aims to build a safe, standardized, transparent, open, dynamic and resilient capital market, and better serve the overall situation of high-quality economic and social development with the high-quality development of the capital market itself.
In July this year, the Third Plenary Session of the 20th Central Committee of the Communist Party of China deliberated and adopted the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese-style Modernization" (hereinafter referred to as the "Decision"), emphasizing that the comprehensive deepening of reform should be regarded as the fundamental driving force for promoting Chinese-style modernization, and the overall layout of the "five-in-one" should be promoted as a whole, and the "four comprehensive" strategic layout should be promoted in a coordinated manner, and the leading role of economic system reform should be brought into play. The "Decision" has made a comprehensive deployment for deepening the reform of the capital market, clearly emphasizing that a series of measures such as "improving the basic system for promoting the standardized development of the capital market", "improving the capital market function of coordinating investment and financing, preventing risks and strengthening supervision", and "supporting long-term capital entry into the market" will improve the function and stability of the capital market, prevent systemic risks, and achieve high-quality development.
Deepening the reform of the financial system has put forward higher requirements of the times for the high-quality development of the public fund industry and helping to promote Chinese-style modernization, and has also pointed out the direction of reform and development. In the long run, the development of the mutual fund industry will continue to be driven by policy support and technological innovation, the product variety will be richer, and the market scale will further grow.
At present, with the continuous advancement of the deepening reform of the capital market, the public fund industry has shown a good momentum of development, and the scale of the industry has grown rapidly. According to data from the Asset Management Association of China, as of the end of July 2024, the scale of public fund management in mainland China has exceeded 31 trillion yuan (31.49 trillion yuan). The regulator is vigorously promoting the entry of various medium and long-term funds such as insurance, wealth management and pension into the market, and the "long money and living water" will help stabilize the market and enhance investor confidence. The national policy continues to guide more resources to flow to the science and technology industry and emerging industries in line with the national strategy, which also provides broad investment opportunities for the public fund industry.
In the future, the public fund industry will adhere to the business philosophy of "investor-oriented", meet the diversified investment and financial needs of investors, upgrade the customer service system, provide investors with full-cycle and multi-faceted companion services, and continue to enhance investors' sense of gain and happiness.
As a member of China Baowu Group, Huabao Fund is a first-class subsidiary of China Baowu Group, the world's largest and most influential steel company, and we have a deep understanding of the original intention and mission of "financial services for the real economy". As a member of the public fund industry, Huabao Fund will thoroughly study and implement the spirit of General Secretary Xi Jinping's important exposition on financial work and the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, and resolutely unify thoughts and actions with the decision-making and deployment of the Party Central Committee. Focusing on the goal of "accelerating the construction of a financial power", we will make every effort to do a good job in the "five major articles" of finance, serve the Chinese-style modernization with the high-quality development of public funds, and help build a financial power.
In recent years, Huabao Fund has continued to promote the construction of a customer-centric core competitiveness system, and explored the establishment of a professional investment research, market, product and operation system that matches the market and regulatory orientation. Among them, since 2022, we have carried out a series of internal reforms in accordance with the investment and research integration idea of "investment guidance research, research support investment", and promoted the deep integration and seamless connection of the entire investment and research team. On the research side, we continue to strengthen the construction of a systematic research team and strengthen the accumulation and transformation of research results. On the investment side, we also review the effectiveness of investment strategies at all times, and build an investment research framework and process with long-term fundamental investment as the core.
The reform and development of the financial and securities industry is changing with each passing day, and the pace of innovation of Huabao Fund to serve the national strategy and the development of the real economy will never stop. We should not only promote the innovation of product and investment dimensions such as underlying assets, product design, and investment strategies, but also continue to innovate at the service level, focus on improving the ability of investment advisory business, and strive to give full play to the guiding role of investment advisors to better serve investors and help inclusive finance.
Mr. Huang Kongwei, Secretary of the Party Committee and Chairman of Huabao Fund Management Co., Ltd., has worked in the Planning and Finance Department and Asset Management Department of Baosteel Group, a subsidiary of Baowu Group, and has concurrently served as a non-executive director of China Pacific Insurance, a supervisor of Industrial Bank, a director of Industrial Bank, and a director of Changjiang Pension Insurance.
Risk Warning: This material does not constitute any investment advice or commitment. Huabao Fund Management Co., Ltd. (hereinafter referred to as "Huabao Fund") or the relevant departments and employees of Huabao Fund shall not be liable for any person's use of the content of this document or any loss arising therefrom. Huabao Fund does not make any commitment or guarantee as to the accuracy and completeness of the information in this material. Before making investment decisions, investors should carefully read the legal documents and risk disclosures such as the fund contract, the fund prospectus and the fund product key facts statement, fully understand the risk-return characteristics and product characteristics of the fund, carefully consider the various risk factors existing in the fund, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgments and prudent investment decisions on the basis of understanding the product situation and sales suitability opinions. Investment in funds is risky and should be cautious.
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