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One sunny afternoon, in a home decorated with classical Chinese charm, Kobayashi is making an appointment with his personal financial advisor. The financial advisor came from a professional financial management company under UBS. Through this company, Kobayashi purchased a stock fund and a real estate trust fund in the United States. The financial advisor was handing over a detailed investment analysis report to Kobayashi.

Although he is just an ordinary white-collar worker, he can make global investments in Shanghai; he can receive the services of professional financial advisors while sitting at home; and the financial products to choose from are even more expensive. , medium and low risk futures options, securities funds and banking products, etc., and even banking, insurance, securities and other products come from the same financial company.

With the countdown to the full opening of China's financial market on December 1 this year, this situation will become more and more common to you and the ordinary people around you.

The full opening of the financial market will bring about great changes

This will be a historic node. When the five-year "transition period" of China's accession to the WTO is coming to an end and China's financial market is fully opened, Chinese investors will truly be integrated into a fully open international market.

The changes that have taken place in the past 5 years are enough to excite us. In 2001, when "Wealth Management Weekly" first used the banner of financial management for citizens, financial management was still an unusually unfamiliar word, but now, the emergence of batches of professional financial planners has made the concept of "expert financial management" deeply rooted in the hearts of the people; Five years ago, open-end funds were just born in March. By the end of 2005, there were 164 funds under management of RMB 386.9 billion in assets; five years ago, there were not many people in Shanghai who had foreign exchange in their hands and wanted to exchange foreign exchange. We have to ask for help from “scalpers”, but now, not only is it much easier to exchange foreign currency abroad, but various foreign exchange investment methods, including option products and index products, have been deeply rooted in the hearts of the people; five years ago, depositing in banks and buying government bonds were the most common means of financial management , and now, it has become popular to allocate assets with global investment ideas...

The full opening of China's financial market will be a sea change for investors, which will not only broaden our horizons, but also It brings us a lot of content that must be learned - update traditional and outdated financial management concepts, learn to adapt to the changes in the financial management environment, study and understand the endless new financial management products, and flexibly use the ever-changing new financial management methods.

Are you ready for the upheaval coming, investor?

Future financial life will show three major trends

Fortunately, in the five-year transition period, the general trend of the financial management market has become clear, and investors have also learned a lot in the innovative financial management market. Now, when a fully open financial market is about to unfold in front of us, we must grasp the trend of market development and make full preparations for the future financial life.

Trend 1: The financial environment has changed from separate industries to mixed industries, and comprehensive financial planning has replaced investment in single financial products.

A few years ago, I could only make deposits and withdrawals at the bank and purchase the bank's own wealth management products. Today, it is very convenient to buy stocks, funds, insurance, futures, etc. through the bank. In the future, as long as you face a financial institution, You can buy a variety of investment products such as banking, insurance, securities, etc. The mixed business model that is prevailing in foreign countries has quietly accelerated in China. At present, some financial groups have begun to show the prototype of mixed business, such as CITIC Group, which has its own fund company, securities company, bank, etc. With a bank card, you can easily complete all investment steps.

As pointed out in the research report of Citigroup, factors such as fierce global competition and technological innovation are the main driving forces of mixed operation in the United States, and these factors are gradually promoting the development of mixed operation in China.

Nowadays, in the wealth management center of the bank, what investors get is only the purchase advice of some bank wealth management products; in the securities company, what they get is only the recommendation of some stocks; and in the fund company, they can only accept which fund products to buy Investing in different financial varieties needs to be completed by different institutions, and the procedures are relatively complicated. In the future, in the mixed financial market, investors can get comprehensive advice from banks, insurance, securities and other aspects as long as they face a financial planner. Comprehensive financial planning will gradually replace a single investment and financial management product. 's recommendation.

Trend 2: Professional wealth management companies emerge as the times require, and the wealth management model of "expert shopping guides" has become the mainstream.

Ordinary investors like Xiaolin have their own financial advisors, which seems a bit extravagant at present, but in the future, as more and more financial institutions are involved in the financial life of residents, all this will be very common. Even every step of your investment and financial management can be provided by a professional financial management company. Of course, to enjoy all this, you need to pay a certain consulting fee.

Someone once said vividly that the domestic financial management market is still just a convenience store, while the foreign financial management market is Jia_Lefu. However, when China's financial market is fully opened, supermarkets and hypermarkets for wealth management will be born soon, especially with the emergence of batches of domestic financial planners, professional wealth management companies will emerge as the times require. In such an era Soon.

From the current point of view, although the policy has not yet allowed overseas wealth management institutions to conduct business, they have penetrated into the Chinese financial market in various ways and are ready to provide wealth management services after the policy is relaxed. The investment model with financial advisors as "professional shopping guides" will also become the mainstream choice. As an intermediary, a professional financial consulting agency integrates various resources in the financial industry and other industries, provides investors with a full range of consulting and planning services, and realizes the specific purchase of a certain financial institution by signing a contract with a financial institution. financial products or investment projects.

Trend 3: Financial choices are becoming more and more personalized, and financial services for high-, middle- and low-income groups are significantly differentiated.

A billionaire can find his private banker, a fashionable white-collar worker can find a competent professional financial advisor, and ordinary people can get the best financial advice in a bank that suits him. People at different levels can get financial services suitable for their financial resources, which is a beautiful prospect that can be foreseen in the future.

Experts predict that competition in China's financial services sector will really kick off after the transition period for WTO accession ends. Since foreign banks still face certain obstacles in developing their businesses, they are likely to specialize in high-end customers, whether large corporations or relatively wealthy individuals, when doing business. Correspondingly, many foreign financial institutions have begun to grab the private banking market, and some foreign financial institutions have begun to provide tailor-made wealth management for these wealthy individuals. In October 2005, Swiss AIA Bank, a private bank accustomed to serving the wealthiest people in developed countries in Europe and America, set up a representative office in Shanghai. At the beginning of this year, French bank Edmond de Rocher followed suit and also aimed at its potential. The huge high-end wealth management market in China, and the official opening of the private banking department of the Shanghai branch of Citibank Co., Ltd. in Shanghai has added another salary to this highly competitive market. It is reported that private banks are specialized in personal property investment and management services for the wealthy, and the customer threshold usually requires personal financial assets to be at least US$1 million.

In other fields, various trust products with high threshold and high yield as the main features are being sold vigorously, the asset investment portfolio of securities companies is gradually being accepted by some high-income groups, and fund companies are specially designed for high-end customers. Special account financial management has been put on the agenda.

Ordinary investors who don't have much savings and expect steady returns can find help from some Chinese banks, especially local commercial banks that are mainly characterized by being close to the people. The series of medium and short-term RMB wealth management products of Bank of Shanghai has formed its own characteristics. The fixed income of about 2% is much higher than that of demand deposits, which is suitable for ordinary people to manage their family wealth; China Everbright Bank, Minsheng Bank and Pudong Development Bank have medium and foreign exchange wealth management products. It is also characterized by stability, attracting a large number of medium and low-end customers; while government bonds, money market funds, short-term debt funds, etc. are also popular, showing the development potential of the huge market. In the future, product development for this market will continue, and there will be more ways to suit small-amount financial management or middle and low-end financial management.

The innovation of wealth management products has accelerated.

Compared with five years ago, the wealth management products that investors can choose from are already very rich. You are even more dazzled.

First of all, the liberalization of the financial market and the liberalization of interest rates are a major premise. The resulting interest rates and methods of deposits and loans will be determined by each bank. This means that ordinary people can enjoy the "three currencies", and arbitrarily choose the deposit and loan products suitable for them between Chinese and foreign financial institutions.

China is gradually liberalizing market interest rates. At present, banks have set a lower limit of loan interest rate for customers' RMB lending rate, and an upper limit of deposit interest rate for deposits. The degree of freedom of foreign currency deposit and loan interest rates bigger. With the expansion of the floating range of the RMB exchange rate, interest rates may also increase the floating range in the future. Especially when foreign banks can also carry out RMB business, people will be very particular about which bank they are willing to deposit their spare money in.

In terms of loans, all current bank credit innovations are based on the most basic premise of real estate mortgage, but this premise is likely to be changed in the future with the entry of foreign banks, because foreign banks own Advanced technology that can better evaluate customers will likely lead this wave of consumer credit. The trend of installment payment for large-value consumption led by credit cards is continuing, and the handling fee and interest behind the installment payment are also the credit profit points that foreign banks are most interested in.

Not long ago, Standard Chartered Bank Shanghai Branch, with its rich experience in small business credit and a good risk assessment system, boldly issued credit loans to small businesses, which set a precedent for unsecured loans for small businesses in China. In some domestic banks, credit loans for some special industries and special groups have also been quietly launched. It is believed that with the further opening of the market and the gradual development of foreign banks' business in China, all these will become more popular, and ordinary people can obtain Loans will be more convenient.

In addition, various innovative RMB wealth management products will be more abundant, and RMB wealth management products integrating foreign currency financial derivatives will gradually enter a "mature period". With the release of QDII to a greater extent, investors will face a broader international market, and they can also go to the international market to buy investment products they are interested in, including stocks, bonds, real estate trust certificates and commodity funds. category.

Qin Shanshan, Product Manager of ICBC Shenzhen Branch, believes that, from the experience analysis of the international mature financial market, financial derivatives are conducive to price discovery, and risk aversion can even greatly increase the return on capital. In the future, wealth management products designed based on RMB derivatives and other options and trust wealth management products will gradually enter the vision of investors. For example, mortgage securitization products, banks can use this to diversify loan risks, and real estate investment trust fund products, which can enable some investors who like high risk to directly share the rising profits of real estate. At the same time, the domestic stock index futures, which are already in full swing, will be derived from treasury bond futures, foreign exchange futures, etc., which will provide rich and comprehensive investment varieties.

New financial management urgently needs to update the concept

The only way to win is to follow the trend. Changes in the investment environment require investors to "react with changes" and update their financial management concepts in time to increase their wealth more effectively and quickly.

1. Establish a global mindset

After the full opening up, China, like other economies in the world, will accept challenges and pressures from all sides. However, with the protective film removed, it is difficult for the Chinese economy to remain calm in the next financial turmoil, and it is not easy to stay safe from the wave of global economic recession again. most correct annotation. Then, there is no reason for us to keep all investment in the Chinese economy.

Global asset allocation is the best strategy to defuse regional economic risks. The theory of "the east is not bright and the west is bright" is also suitable for asset allocation. Due to the diversification of asset classes and regions, with the same risk, global investment portfolios should bring higher returns than strictly domestic investment portfolios , or offer similar benefits at a reduced risk level. And a fully open market provides opportunities for this kind of global investment and asset allocation.

2. Focus on long-term investment and follow professionalism in financial management.

Chen Maofeng, general manager of Hong Kong Royal Peak Financial Management Co., Ltd., reminds investors that a fully open market also means the gradual establishment of a mature market. In a relatively mature investment market, short-term speculation and speculation will become increasingly unpopular. On the contrary, long-term investment behaviors that meet the needs of personal financial management will gradually be accepted by everyone.

In such a market, the role of professional financial institutions will surely be re-understood. "Recognize your own financial needs, trust the professional advice of financial advisors, and don't just look at investment returns and ignore risks." Chen Maofeng believes that recognizing the correct relationship between risks and returns is an important part of a mature financial concept, "Investment must be coordinated with individuals. The subjective risk appetite and objective risk tolerance ability of the individual must be in line with the personal financial management goals in life, neither too aggressive nor too conservative."

3. Re-understand investment risks and resolve risks through portfolios compared to the full opening of the market. The investment opportunities brought by, Xu Jianming, executive vice president of Shanghai Institute of Financial Management, wants to remind investors to re-understand investment risks. The full opening of the financial market means that the rules of the game for investment and wealth management have moved closer to the international level, so the risks may become higher, and many risks that did not appear in the semi-closed market in the past will follow.

"For example, the risks of interest rates and exchange rates. With the increase of exchange rate and interest rate fluctuation parameters, the risks faced by investors are also relatively increased. When conducting foreign exchange financing and RMB financing, the potential costs will also increase. Careful calculation is required; also, since banks and insurance companies are more and more embodied as market-oriented individuals, rather than the concept of 'state-owned' in the past, the risk of bankruptcy cannot be ignored; at the same time, after the market is fully opened, the number of participants increases , the risks will also increase." Xu Jianming said.

This article is excerpted from First Financial Network (www.Amoney.com.cn) with permission.