Securities firms have revealed new trends in investment banking, wealth management, and asset management business intensively. In October, 14 securities firms have released records of their investor relations activities.

With the continuous deepening of the capital market and active policy guidance, securities businesses are undergoing a profound transformation, and investors are showing comprehensive and in-depth attention to the development of securities businesses. According to incomplete statistics from Caixin reporters, since October, at least 14 securities firms have successively released records of investor relations activities, responding to current investor concerns such as wealth management, investment banking business development, impact of public fund commission reduction, trends in asset management business, etc. Multiple measures to promote the development of wealth management business With the continuous improvement of the basic functions of the capital market and the comprehensive implementation of new asset management regulations, securities firms' wealth management business is also making continuous progress. How securities firms transform from traditional brokerage business to wealth management business, and how this transformation opens up new opportunities and growth points is a question that investors are closely watching. CMSC (600999.SH) stated that the company will develop the wealth management business from four aspects: First, focusing on customer product profitability and investment experience, with the strategic goal of expanding wealth management AUM, the company will shift from "sales-oriented" to "retention-oriented," solidifying the customer base of financial products and expanding the scale of financial product holdings. Second, improving the product line, creating a diverse product pool covering investment products, insurance products, and service products, to meet the comprehensive wealth management needs of customers in terms of investment returns, risk diversification, and transaction management, enhancing customer experience; selectively choosing financial products with professional business and research capabilities, improving product quality, controlling product investment risks, and establishing a performance and risk tracking system for products to timely and comprehensively evaluate the continuous operation of products. Third, in terms of buyer advisory services, since the company's fund advisory business was established, it has consistently stood from the perspective of customers, providing product allocation and investment advisory services to customers, achieving certain results. Fourth, to provide advisory services in a companion-like manner, strengthen investor education. Conducting various investment education activities to enhance customers' investment knowledge and skills, providing customer support and answering questions during market volatility, creating a comfortable holding experience for customers. In the future, we will continue to focus on customers' core needs of asset preservation and appreciation, continually improve our professional capabilities, help customers select suitable products, and configure them properly, and make investment advisory services more precise and personalized by leveraging financial technology. In terms of wealth business initiatives, Caitong (601108.SH) has three key areas of focus: First, continuing with the wealth management transformation, accelerating the transformation of the public fund brokerage into indexed funds, further deepening the transformation towards buyer advisory services, enhancing asset allocation services, maintaining a well-established financial product system, promoting buyer advisory business, improving sales competitiveness and digitizing business efficiency. Second, actively promoting the institutionalization transformation of the business, focusing on the comprehensive and diversified needs of institutional clients, enriching algorithmic business application scenarios, strengthening precise marketing promotion of algorithmic business, promoting customer activation and benefits enhancement among existing clients. Additionally, enhancing the training of institutional business teams, private wealth advisors, and other comprehensive talent categories, as well as improving the introduction and service capabilities for high-net-worth individual and institutional clients. Third, focusing on the concept of "Where Zhejiang entrepreneurs and enterprises go, Caitong follows with services," accelerating the coverage of service teams in Zhejiang entrepreneur and enterprise gathering areas, strategic central cities, and mountainous and island counties within Zhejiang province. China Securities Co., Ltd. stated that since the beginning of this year, the company has comprehensively understood various regulatory requirements and adhered to the political and people-oriented nature of financial work. The company is developing wealth management business from four directions: First, changing the business mindset, emphasizing functional play, aligning incentives with long-term value creation and customer satisfaction; Second, enhancing comprehensive service capabilities, deeply exploring and serving customers' comprehensive financial needs throughout their lifecycle, actively deploying investment education and buyer services, integrating technology and AI technology deeply, strengthening wealth management capacity building, optimizing service support systems, and enhancing service efficiency and accuracy; Third, deepening intensive operations, optimizing the organizational structure around customers, establishing an efficient customer segmentation system, implementing refined management of branches and staff, improving resource utilization efficiency and service accuracy; Fourth, strengthening collaborative sharing, further optimizing internal cooperation models using the "entrepreneur's office" as leverage. In response to the wave of wealth management, Zheshang has launched an innovative project called "Research + Wealth," empowering with in-depth research and leveraging collaborative efforts, strengthening the traditional asset allocation label while expanding into bond and cash asset derivatives. For equity assets, the company conducts detailed research, while for bond and cash assets, it conducts macro-level research. IPO issuances are under pressure, and securities firms are actively responding In the first half of 2024, the new "National Nine Policies" were released, focusing on further improving the issuance listing system, strengthening the full chain responsibility of issuance listing, and increasing the supervision of issuance underwriting. In this context, several securities firms have responded to the future strategy of the investment banking business. China Securities Co., Ltd. believes that although IPO, secondary offerings, and other equity financing businesses are currently under significant pressure in the market environment. However, looking at the long term, investment banking business can play an important role in supporting the development of new productive forces and the process of Chinese modernization through the capital market. We must adapt to market changes, actively respond to challenges and opportunities. The company places functional benefits at the forefront of its investment banking business, closely focusing on serving the real economy and national strategies, transitioning from predominantly licensed business to providing customers with a comprehensive range of products and full-lifecycle services transformation. The company has already made a series of adjustments, such as optimizing internal organizational structure, expanding into M&A restructuring, Hong Kong stocks, international business, etc., actively designing comprehensive financial services solutions for customers. It is worth mentioning that in the construction of a world-class investment bank and investment institution, China Securities Co., Ltd. stated in October 2023, the Central Financial Work Conference mentioned the "cultivation of a first-class investment bank and investment institution." The company is deeply implementing the decision-making and arrangements of the central party, actively promoting the construction of a "first-class investment bank." At the beginning of the year, the company formally proposed building a first-class investment bank with "first-class culture, talents, and services." (Note: The translation may not be 100% accurate due to the complexity of the text.)The goal of a leading investment bank is "ability, first-class service, and first-class performance". The company's current business strategy revolves around building a leading investment bank overall layout, continuously optimizing business systems and layouts, enhancing the company's comprehensive service capabilities and competitiveness. SpecificallyFirst, we will leverage our professional strengths in "investment + investment banking + research" to serve domestic and international clients, actively supporting the development of new productive forces. Second, we will focus on national strategies and carry out "five major financial tasks" to improve the quality and efficiency of service to the real economy. Third, we will enhance wealth management service capabilities. Fourth, we will improve our international business layout, implement an international development strategy, support Chinese companies in going global, and attract high-quality international capital. Fifth, we will continuously improve the company's management level, enhance operational support, and compliance risk control capabilities. Southwest stated that the investment bank closely follows new regulatory policies such as the "Nine Articles of the Nation", with a focus on serving the construction of the Chengdu-Chongqing economic circle, deepening local services in Chongqing, seizing opportunities in the Beijiao Exchange and state-owned enterprise reform, actively maintaining key client relationships and exploring new business opportunities. The company will continue to strengthen its core businesses and play to its strengths in merger and acquisition services. The company will explore the financing needs of existing bond issuers, stabilize the "borrowing new to repay old" business, and further expand into rural revitalization bonds, technology innovation bonds, and other specific types of bonds while actively utilizing opportunities in Chongqing's bond market. GF SEC stated that the company actively implements national strategies and regulatory policies, prioritizing financial services to the real economy. The company focuses on developing new productive forces and national strategic emerging industries, delving deeper into key regions, fostering high-value enterprises, and supporting high-quality companies in their IPO financing. The company attaches great importance to bond business servicing national strategies, promoting the development of technology innovation companies as new productive forces, and actively implementing ESG initiatives to promote green and low-carbon development through bond financing. Furthermore, the company will fully utilize the advantages of its comprehensive financial platform to provide comprehensive capital market services throughout the lifecycle to enterprises, while continually strengthening the quality control of its investment banking business and fulfilling its role as a "gatekeeper" in the capital market. Northeast's approach is also actively responding to regulatory calls, continuously enhancing practice quality standards, increasing the introduction of resource-type talents, improving team capabilities, transitioning from a standardized to a value-oriented practice concept, establishing standards for screening and selecting projects that focus on substance, growth, and value, actively exploring and developing target companies with high value, potential, and the ability to develop into high-quality listed companies, playing a key role as gatekeepers of the capital market to support high-quality development of both the capital market and the real economy. In the future, the company's investment banking business will continue to focus on supporting the high-quality development of listed companies, paying attention to growing small and medium-sized enterprises, and providing them with comprehensive services and support throughout their lifecycle. Multi-strategy approach for asset management business layout With the full disclosure of the third-quarter results in 2024, the performance of the securities industry has become a focus of the market. Despite challenges facing investment banking and wealth management businesses, the strong growth momentum of asset management business has brought a glimmer of hope to the industry. Therefore, investors are also concerned about the development of asset management businesses of various securities firms. Guosen, when discussing the reasons for the rapid growth of the companys asset management business and the development direction of its asset management subsidiaries, stated that the main focus is on three directions. Firstly, in terms of investment research, the company fully utilizes its accumulated advantages in investment research and strategies to achieve good investment performance that is recognized by clients. In the market aspect, the company has established an internal and external market system, actively collaborating internally with wealth management, investment banking, and other business lines to provide integrated financial services and business solutions to clients, and externally expanding sales channels by establishing regular cooperation with major domestic banks, internet platforms, and others. In terms of products, the company has actively expanded beyond traditional fixed income and equity strategies to new strategies such as structured derivatives, establishing a comprehensive product system covering mainstream strategies in the market and providing corresponding products and services according to client needs. In addition, the asset management subsidiaries will continue to focus on the strategic direction of "long-term foundation and investment research". Firstly, further strengthen the construction of the investment research system, drive business development with solid investment research and stable performance, and introduce more top strategies. Secondly, further solidify sales channels. Currently, the company has established cooperative relationships with multiple banks and internet institutions. In the future, it will continue to expand channels and focus on customer engagement to enhance the customer experience. Thirdly, increase efforts in product innovation, taking into account various customer needs in terms of investment period and risk preference, and exploring market opportunities. Caitong, when asked if the company will focus on the asset management business in the future, stated that Caitong Asset Management will leverage its own resource endowments, activate the advantages of securities asset management and public fund licenses, strengthen the "one core, two wings" business structure, focusing on active management capabilities such as stocks, fixed income, FOF, quantitative strategies, expanding into asset-backed securities, REITs, and innovative businesses such as listed company stock pledges, employee stock ownership plans, actively exploring a path of differentiation, specialization, and diversification. Firstly, actively engage in public fund business, optimize product structure, increase the supply of wealth products, build a diversified product matrix of multiple assets and multiple strategies, and solidly promote inclusive finance. Secondly, asset management has a rich product line of fixed income, with a variety of types, and some "top" products have accumulated good market reputations. Fixed income business is the basic foundation of Caitong Asset Management, and in the future, with "FICC" as an important business growth pole, it will promote cross-border investment layout, enrich the development of "added strategies", and focus on major strategies in the fixed income business. Thirdly, promote equity product layout. Currently, the equity research team has more than 30 members, covering all 31 primary industries from SW Securities, and has allocated more resources to key industries such as medical, technology, consumer goods, and new energy. It has product layouts in all types of market investments, styles, industry themes, and index enhancements. Northeast stated that the company operates securities asset management business through its wholly-owned subsidiary Dongzheng Ronghui. Dongzheng Ronghui actively responds to industry changes and policy changes, adheres to realizing high-quality growth of scale, focusing on investment research to drive business development with solid research and stable performance. They plan to release more top strategies.INGS focuses on maintaining stable performance, continuously expanding sales channels, enriching product layout, improving investment performance, perfecting operation system, striving to establish brand image and accumulate product reputation, actively seizing market opportunities, and promoting the healthy and positive development of the business. According to publicly available data, as of now, the performance of the company's equity-based large combination products is among the top in the market for similar products.The curtain of commission reduction in public offering is being opened, and the sellers' research business is returning to its essence. With the opening of the curtain of commission reduction in public offering, the reduction of commission will guide the industry to return to the essence of research and focus on professional research capabilities. Therefore, investors are also concerned about how fund fee reforms will promote the development of brokerage research business. CMSC mentioned that the "Regulations on the Management of Securities Trading Expenses of Publicly Offered Securities Investment Funds" aims to guide securities fund management institutions to further rectify their business philosophy, focus on improving long-term returns for investors, provide higher quality trading, research, and investment services, and promote the formation of a good industry development ecology. For securities firms, the new regulations will enhance the service capabilities of securities firms for institutional investors, promote the industry's return to its roots and high-quality development. The company plans to optimize and strengthen its research business to support institutional investors in improving long-term returns, helping to better meet the growing wealth management needs of the people. Southwest believes that in the first half of 2024, the reform of reducing commission fees for mutual fund transactions is the main theme running through the entire industry, and the business model of "fund sales switching to transaction commissions" is undergoing fundamental changes. According to statistics from relevant institutions, brokerage commission income from separate accounts was 6.774 billion yuan, a year-on-year decrease of about 30%, with the vast majority of brokerage commission income from separate accounts declining. In the first half of 2024, Southwest's research business promoted the normalization of "external service" + "internal empowerment", establishing and improving a research service system for wealth clients, industry clients, and institutional clients, continuously building the Southwest research brand externally, promoting a normalized communication mechanism internally, actively integrating into the company's big wealth and big industry lines, increasing coverage of listed companies in Chongqing, actively providing consulting services to local governments and industry clients, and tapping into the comprehensive value of research business. In the first half of 2024, Southwest's commission income from separate accounts was also affected, with a decrease in income consistent with the industry. In the future, Southwest will pay more attention to improving research capabilities, increase research investment, further enhance investment research capabilities and sales service capabilities, and further consolidate and increase market share. Xiangcai Securities stated that the company's overall commission rate is in line with the industry average. Xiangcai Securities plans to continue to reduce costs and increase efficiency in accordance with the strategic plan driven by wealth management and financial technology. Due to Xiangcai Securities' advantage in financial technology, it can revitalize existing customers with lower manpower input. Northeast mentioned the reduction of fees in public offering funds, believing that although it will have a certain impact on the research consulting business of securities firms, the direction of the company's research business development will not change. By actively expanding market development, increasing the number of core public offering clients, expanding the breadth and depth of non-public offering services, and continuously optimizing business income structure. Currently, the company has a relatively complete management model and measures for the research consulting business, and has achieved good results over the years through continuous cultivation of high-quality talent, leveraging business characteristics, adhering to standardized management, and continuously building core competitiveness. In the future, the company will continue to support the talent team building of the research consulting business, continuously integrate company resources, improve internal collaborative efficiency, strengthen research capabilities, and comprehensively enhance customer expansion and service capabilities.