NEWS: The potential of China's management of management is still considerable

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Although China's new management system has issued a rapid brake on the domestic large capital market, a well-known international consultancy, McKinsey, released a report on Monday that the future potential of domestic management is still considerable, driven by residents' financial and institutional demand. To cope with the new management policy, the domestic banking industry should transform into active management and net value products as soon as possible.
The report predicts that in the future, China's personal wealth will continue to grow at a rate of 8%, which will reach RMB 158 trillion in 2021, and the trend of resident deposit removal will continue. The proportion of non cash and deposit financial assets will increase from about 51% to more than 56%, and the institutional investors will grow up at the same time.
"Management is of great strategic value to banks. Looking at the leading international banks, the return on equity in asset management is generally above 20%, far higher than the average of the bank, and it also helps the bank to cross the economic cycle." Qu Xiangjun, a senior director of McKinsey Global and director of China's financial industry consulting, pointed out.
He said that asset management is a typical high investment and high return business, taking the international leading banking management company as an example, the cost and income of its management business is more than 70%, mainly the research team and the scientific and technological capabilities. But at present, the investment in the management department of the domestic banks is generally insufficient, for example, the fund company with the scale of over 200 billion yuan, the employees are more than 400 people, and the assets management department of most domestic banks has only a few dozen people.


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