Five years after joining the WTO, financial life has changed greatly

"Wealth Management Weekly" was founded in the same year as China's entry into the WTO. It should also start in 2001 for Chinese people to start thinking about financial management.

5 years ago, when we used the loud slogan "You don't manage your money, your money doesn't care about you", many people asked strangely: "What is money management?" In their opinion, a little extra money is saved every month. State-owned banks are all about financial management. But now, does anyone still think so? Financial management has not only become a part of our lives, it has changed our lives dramatically.

Those on the front lines of the financial industry seem to have more say in this regard. They not only feel this change in their daily work, but also accelerate the process of this change through their own efforts.

Zhang Xian, Deputy Director of Wealth Management Center of China Merchants Bank Shanghai Branch——

Bank: From Simple Access to Comprehensive Financial Management Foreign banks are unattainable, for fear that one day they will "eat" us. But in the five years since we joined the WTO, we have actually grown a lot, and we also have our own advantages. The financial industry will be fully opened by the end of this year, and we will compete head-to-head with foreign banks, but we are not as flustered as we were five years ago.

The wealth management center of China Merchants Bank Shanghai Branch was established in 2002, the second year of China's accession to the WTO. Before that, not only ordinary citizens, but also the entire banking industry had very limited understanding of financial management. I remember that when the wealth management center was first established, there were almost no wealth management products except for simple deposit and withdrawal business. At the beginning, wealth management products were all popular, and they did not distinguish the different needs of different groups of people. But gradually, we noticed the differences between different income groups, and gradually launched some new products with different risks and benefits. Now, no matter who comes When you go to a bank, you can choose a financial management method that is higher than the current savings interest rate that suits you. Not only that, some products 'monopolized' by foreign banks in the past have also been sold in Chinese banks. Citizens can also share the growth of the global stock market through structured wealth management products.

In the past, many citizens complained that the counters of banks were set too high, and some short people really had to stand on tiptoes. Now you can see that all banks have lowered their bodies, and citizens can no longer look up to tall ones. Instead, sit at the bank counter and listen to a financial planner to develop a personalized financial plan. This is also a noticeable change.

In addition, the increase in various value-added services and paid services is also a new phenomenon in the banking industry in the past five years. The VIP boarding channel and VIP golf service all reflect the bank's meticulous care for VIP customers. As a commercial institution, the bank will also develop some technical wealth management products for the purpose of maximizing profits. At the same time of service fees, it also maximizes the income of customers' assets. This "win-win" model will continue.

Attachment: Timetable for opening up the banking industry

Gradually abolish the geographical restrictions on foreign-funded banks operating RMB business. When joining, Shenzhen, Shanghai, Dalian, and Tianjin are open; within 1 year after joining, Guangzhou, Qingdao, Nanjing, and Wuhan are open; within 2 years after joining, Jinan, Fuzhou, Chengdu, and Chongqing are open; within 3 years after joining, Kunming, Zhuhai, Beijing and Xiamen; Shantou, Ningbo, Shenyang, and Xi'an will be opened within 4 years after joining; all geographical restrictions will be cancelled within 5 years after joining. Gradually abolish the restrictions on the target customers of RMB business. Within 2 years after joining, foreign banks are allowed to handle RMB business to Chinese enterprises; within 5 years after joining, foreign banks are allowed to provide services to all Chinese customers. Remove all existing non-prudential measures for foreign bank ownership, operation and establishment, including restrictions on branch offices and licensing. Allow the establishment of foreign non-bank financial institutions to provide auto consumer credit business and enjoy the same treatment as Chinese-funded financial institutions of the same type; foreign banks can provide auto credit business to Chinese resident individuals within 5 years after joining. Foreign financial leasing companies are allowed to provide financial leasing services at the same time as Chinese companies.

Han Ruomei, Deputy General Manager of Marketing Department of Pacific Antai Life Insurance Company——

Insurance: From Pursuit of Return on Investment to Return Protection

I am from Taiwan, China. When I came to Shanghai a few years ago, I told the truth Yes, I'm not used to it. The biggest difference comes from people's perception of insurance. In the five years since China's accession to the WTO, it is precisely in the process of changing the perception of insurance that the insurance products and services in the Shanghai market have gradually become more enriched and improved.

Han Ruomei, Deputy General Manager of the Marketing Department of Pacific Antai Life Insurance Company, came from Taiwan, China, and came to Shanghai in early 2004. In her view, before and after entering the WTO, the changes in the insurance industry focused on the renewal of concepts, the enrichment of products and the improvement of services, and the return of the insurance protection function is the most gratifying content.

When I first came to Shanghai, I found that Shanghai citizens were very enthusiastic about buying insurance, but they were looking for a high return on investment. This concept of insurance is clearly misunderstood. After that, due to the accident of investment-linked insurance, people's attitude towards insurance became cold again. It was only in recent years that they experienced a process of re-understanding insurance and gradually increasing the awareness of insurance.

In fact, the improvement of insurance concept is showing the gradual maturity of this market. When the per capita GDP is between 1,000 and 3,000 US dollars, the increase in people's insurance awareness appears to be relatively slow, but once the per capita GIP exceeds 3,000 US dollars, the insurance market will achieve breakthrough development.

In addition, with the opening of China's insurance market to foreign investment, the large-scale entry of foreign insurance has also brought some pure protection types of insurance. If in the past it was still dominated by savings-type and investment-type insurance types, now the types of health insurance and protection-type life insurance are very rich, enough to meet the insurance needs of policyholders. In the future, some professional insurance types such as long-term care insurance and unemployment insurance will also appear.

In addition, I am deeply impressed by the progress of the insurance industry in terms of customer service. Before entering the WTO, insurance companies rarely had the concept of customer service. Today, various information platforms including e-commerce and advanced communication tools have Bringing insurers closer to regular customers, in many companies, orphan policies that have been forgotten in the past have special planning. These all represent the development trend of further improvement in the insurance service industry.

Attachment: Insurance Market Opening Process

According to the rules of the WTO "General Agreement on Trade in Services", my country will make the following commitments in the insurance market.

After joining the WTO, foreign life insurance companies are allowed to set up joint venture companies, but the foreign shares shall not exceed 50%, and foreign non-life insurance companies are allowed to set up branches or joint venture companies, and the domestic and foreign shares in the joint venture company can reach 51%; within two years, allow Foreign non-life insurance companies set up independent subsidiaries.

When joining wto, Shanghai, Guangzhou, Dalian, Shenzhen, and Foshan are open; within 2 years, Beijing, Chengdu, Chongqing, Fuzhou, Suzhou, Xiamen, Ningbo, Shenyang, Wuhan and Tianjin are open; within 3 years, all regions are cancelled limit.

Cao Yue, Director of Marketing Services, Wells Fargo Fund Management Co., Ltd.——

Fund: from monotonous to dazzling

I entered the fund industry in 2000, It can also be regarded as a witness of China's securities market from closed to open. In the past five years, the development speed of the entire securities market, especially the fund industry, has surprised me. Sometimes I even feel that there are so many funds that are dizzying. However, it is certain that there will be many more funds in the future, both in number and variety, and investors will have a lot of room for choice, but the requirements for professional knowledge will become higher and higher.

I clearly remember that China's first open-end fund was born in 2001, when my country officially joined the WTO. At that time, most of the fund types were still closed-end funds, which seemed extremely monotonous. But since China's accession to the WTO, the fund industry has been the first to become the vanguard of the financial industry's accession to the WTO. Foreign capital began to set up joint venture companies to engage in fund management business, which greatly enriched the structure of fund products.

According to the WTO commitments, from the time of accession, my country allows foreign capital to set up a joint venture company to engage in domestic securities investment fund management business. With the gradual fulfillment of the WTO commitments, China's fund industry will face new opportunities and challenges. Now, investors can choose stock funds, bond funds, equity and debt balance funds, and money market funds, etc. Recently, we have launched quasi-FOF, which is the fund of funds - Wells Fargo Tianhe Fund, in one sentence , Through different fund varieties, investors have been able to build a stable and effective investment portfolio.

Of course, the products of various domestic fund companies are still similar, while foreign funds have developed for decades and have systematic operating concepts. In addition to the stock market, they can also set foot in foreign exchange, futures and other markets, and can be matched with derivative products. , the product design is flexible and diverse. At present, the competition in the domestic fund market is still mainly focused on investment management, that is, performance competition. In the rapid development process under the condition of intensified foreign competition, brand competition based on performance and service will become the lifeline of fund companies. With the continuous improvement of services in the fund industry, domestic investors will gradually mature through rounds of international advanced education, and fund selection based on brands will become mainstream.

Attachment: Opening up of the securities market

Three years after China's accession to the WTO, foreign securities companies and investment banks may establish joint ventures with Chinese securities business institutions to establish securities business institutions with foreign shares not exceeding 33%, to engage in A-share and B-share securities Underwriting services for H-shares and government bonds; 2. Foreign securities operators can jointly establish asset management companies with Chinese securities operators, and promise to raise the upper limit of foreign shares to 49% three years after China's accession to the WTO. In addition, in terms of capital account opening, capital controls will be gradually relaxed after five years.

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