by Han Yuhang

As China’s financial sector continues to open up, global asset managers are finding more fresh opportunities here. Shanghai, known as China’s financial center, is becoming a hub for international investment. What does this mean for the future of China’s asset management industry? In a recent conversation with Jiemian News, Zhang Pengjun, GM of BlackRock CCB Wealth Management, shared insights on this evolving landscape.

Jiemian News: As China continues to open up its financial sector, we’ve seen more international players setting up in Shanghai. What impact will this have on both Shanghai and China’s asset management industry?

Zhang: The presence of international financial institutions in Shanghai is rapidly accelerating the city’s role as a global financial and asset management hub. Many foreign institutions are attracted by China’s market potential and are bringing diverse investment strategies, advanced risk management practices, and innovative financial products. This influx enriches Shanghai’s financial ecosystem and boosts the city’s capacity for global resource allocation.

International institutions are poised to make a deep impact on China’s financial sector. Their entry enriches the market’s capabilities, enabling Shanghai to strengthen its role in global resource allocation. These firms bring diverse investment perspectives, which support regulatory innovation and foster a more open, high-quality financial industry. Additionally, they drive financial technology forward, enhancing service efficiency and paving the way for more sophisticated offerings. By attracting top global talent, they also spark cross-border collaboration, promoting growth across the entire industry.

Jiemian News: Shanghai is already recognized globally as a financial center. According to international standards, what more does it need to achieve to reach the next level?

Zhang: To enhance Shanghai’s global standing as a financial center, greater participation from international financial institutions in influential markets is essential, especially through more advanced product offerings, seamless cross-border connectivity, and a reliable regulatory framework. 

Meanwhile, digital finance represents a key priority; Shanghai is already a domestic leader in this field, but there’s ample room to expand its global impact. By advancing financial technology and setting best practices for international data governance, the city can reinforce its competitive edge. 

Additionally, fostering an inclusive financial culture will be crucial. A commitment to prudent risk awareness, high ethical standards, and a vibrant, welcoming environment for international business will enrich Shanghai’s unique appeal on the world stage.

Jiemian News: With global economic uncertainty increasing, what impact does this have on joint-venture financial institutions? How should they respond?

Zhang: Rather than viewing global uncertainties as challenges, we see them as drivers for high-quality growth in our industry. As the market environment evolves, with increasingly complex investment products and rising expectations from investors, wealth management firms must prioritize their fiduciary responsibilities. This involves delivering effective investment education, managing investor suitability, and supporting clients throughout the product lifecycle.

Equally important is the goal of achieving long-term, stable, and sustainable returns. In times of market volatility, blending local market insights with international investment expertise becomes essential. This combination is key to developing distinctive investment strategies that meet investor expectations.

Additionally, joint-venture wealth management companies operate under diverse regulatory frameworks across different countries and markets. Adhering to these complex standards ensures that operations remain resilient and compliant, aligning with global best practices.

Jiemian News: Given China’s progressively open asset management market, how will joint-venture companies distinguish themselves?

Zhang: Competing effectively in China’s market requires both understanding long-term trends and deeply analyzing clients’ wealth management needs. Based on this, we can design high-quality products and services that meet diverse client needs.

In terms of product offerings, our goal is to provide clients with a broad selection of wealth management options, from low-risk to high-risk products (R1 to R5), including annuities and international investment options. This allows us to meet the varied needs of clients with different risk profiles.

Jiemian News: Looking back over the past three years since BlackRock CCB Wealth Management was established, how would you summarize this journey?

Zhang: Since our founding in 2021, I’d summarize our journey with three key values: a commitment to learning, an entrepreneurial spirit, and confidence in a bright future.

We’re optimistic about the growth potential of China’s wealth management market, which is driven by clear client demand. Recently, the government has implemented policies aimed at stabilizing economic expectations, boosting market confidence, and stimulating growth. This has strengthened our confidence in the future of China’s capital markets, and we believe the best is yet to come.